Published on 09 Sep 2015 • England, International, Wales
Developments that may be of interest to arbitration practitioners for the week to 9 September 2015.
We report in brief below on other developments that may be of interest to arbitration practitioners:
In William Ralph Clayton, William Richard Clayton, Douglas Clayton, Daniel Clayton and Bilcon of Delaware Inc. v. Government of Canada, UNCITRAL, PCA Case No. 2009-04, a NAFTA Chapter 11 tribunal refused Canada's application for a stay of its award on jurisdiction and liability to allow for Canada's motion to the Canadian Federal Court to set aside the award. The tribunal concluded that Canada had not shown that considerations of efficiency favoured a departure from the tribunal's earlier procedural order for bifurcation of the proceedings, nor that one of the claimants' concerns about erosion of evidence, were the proceedings stayed, were unwarranted.
In PDV Sweeny, Inc. v. ConocoPhillips Co., (S.D.N.Y. Sept. 1, 2015), the US District Court for the Southern District of New York has denied the petition of Venezuela's state-owned oil company, PDVSA, to vacate an award arising from an International Chamber of Commerce (ICC) arbitration seated in New York. PDVSA breached the parties' joint venture agreements by not supplying crude oil. The agreements gave ConocoPhillips a call option to acquire PDVSA's stake in the joint venture in the event of PDVSA's breach. The tribunal rejected PDVSA's argument that exercise of the call option resulted in an unenforceable penalty under New York law. The district court held there was no basis to reject the tribunal's factual and legal conclusions. The court denied the petition to vacate the award and granted the cross-petition for recognition and enforecement the award under the Inter-American Convention on Commercial Arbitration and the Federal Arbitration Act.