Published on 14 Mar 2022 • International, USA (National/Federal)
In Process & Indus. Devs. Ltd. v. Fed. Republic of Nigeria, (D.C. Cir. Mar. 11, 2022), the US Court of Appeals affirmed a decision of the District Court that found it had jurisdiction in a suit for recognition and enforcement of a USD9 billion award arising from a London-seated arbitration conducted under the rules of the Nigerian Arbitration and Conciliation Act.
The US Court of Appeals in Washington, DC has affirmed a decision of the District Court that found it had jurisdiction in a suit for recognition and enforcement of a USD9 billion award arising from a London-seated arbitration conducted under the rules of the Nigerian Arbitration and Conciliation Act.
On remand, the District Court concluded that it could proceed with the case because Nigeria had waived sovereign immunity. Nigeria made a second appeal.
The court held that Nigeria's sovereign immunity was abrogated by the arbitration exception and declined to address the District Court's application of the waiver exception.
The only issue in contention was the existence of the award. Nigeria argued that the award was not valid and enforceable because the Nigerian court had set it aside. The court rejected that argument, holding that the validity or enforceability of an arbitral award is a merits question, not a jurisdictional one. The Court of Appeals again remanded the case to the District Court to consider the merits of the enforcement action, including Nigeria's request that enforcement be refused under article V(1)(e) of the New York Convention.