Sigma Constructores, S.A. v. Republic of Guatemala

Summary

The United States District Court for the District of Columbia denies Guatemala’s motion to dismiss, stay, or transfer a petition by Sigma Constructores, S.A. seeking confirmation of an arbitral award arising from the early termination of a highway construction contract. The court concludes that the Foreign Sovereign Immunities Act’s arbitration exception provides subject-matter and personal jurisdiction, and that the petition falls within the implementing provisions of the New York and Panama Conventions. The court also declines to apply forum non conveniens or stay the proceedings at this stage.

Holdings

1. The FSIA arbitration exception applies because the action seeks confirmation of an arbitral award made pursuant to an arbitration agreement with a foreign state, and the award is potentially governed by the New York Convention. The exception therefore supplies subject-matter jurisdiction, and, because Guatemala was served, personal jurisdiction as well.
2. A stay was unwarranted at this stage. The Convention's permissive stay provision leaves the decision to the district court's discretion, and the relevant factors primarily weighed against a stay or were neutral. Guatemala may renew its request before judgment.
3. Forum non conveniens is unavailable in the D.C. Circuit for proceedings to confirm foreign arbitral awards.
4. Although a confirmation petition is not a pleading and Rule 12(b) defenses technically do not apply, a court may construe a foreign sovereign's jurisdictional Rule 12(b) motion as a proper written motion under Rule 7(b) and address the jurisdictional issues.

Questions Presented

1. Whether the FSIA arbitration exception, 28 U.S.C. § 1605(a)(6), supplied subject-matter and personal jurisdiction over Guatemala in an action to confirm a Guatemalan arbitral award under the New York and Panama Conventions.
2. Whether the court should stay the confirmation proceeding pending Guatemala's ongoing proceedings to challenge the award.
3. Whether forum non conveniens was available in a Convention proceeding to confirm a foreign arbitral award.

Disposition

other