Thai-Lao Lignite (Thailand) Co. v. Government of the Lao People's Democratic Republic
492 F. App'x 150
2d Cir.2012Background
- Laos appeals a district court's grant of Thai–Lao Lignite and Hongsa Lignite's motion to confirm a Kuala Lumpur arbitral award under the FAA.
- The PDA requires arbitration under UNCITRAL rules and delegates arbitrability questions to the arbitral panel.
- The question is whether the arbitral panel exceeded its jurisdiction, including the standing of third parties.
- The district court applied deferential review; the court reviews for abuse of discretion but questions of law de novo.
- The panel’s interpretation of the PDA and its delegation of arbitrability is central to the dispute.
- This Court affirms the district court, underscoring that review does not substitute the court’s contract construction for the arbitrator’s.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitral panel exceeded its jurisdiction. | Laos argues the panel improperly decided issues beyond the PDA. | TLL/HLL contend the UNCITRAL rules authorized arbitrability questions to be decided by the panel. | Panel did not exceed its jurisdiction. |
| Whether the district court adequately reviewed the arbitral panel’s decision. | Laos seeks de novo review of contract interpretation by the panel. | Appellees urge deferential review of arbitral construction under the FAA and UNCITRAL framework. | District court’s deferential review was appropriate. |
Key Cases Cited
- Republic of Ecuador v. Chevron Corp., 638 F.3d 384 (2d Cir. 2011) (delegation to arbitrator on arbitrability)
- Contec Corp. v. Remote Solution Co., 398 F.3d 205 (2d Cir. 2005) (incorporation of arbitration clause to delegate arbitrability)
- Parsons & Whittemore Overseas Co. v. Societe Generale de l'Industrie du Papier (RAKTA), 508 F.2d 969 (2d Cir. 1974) (deference to arbitrator's contract construction; matters within scope of arbitration)
- Encyclopaedia Universalis S.A. v. Encyclopaedia Britannica, Inc., 403 F.3d 85 (2d Cir. 2005) (heavy burden to deny arbitration award; showings for refusal)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995) (arbitration agreement delegating threshold questions to arbitrator)