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Ministry of Def. & Support v. Cubic Def. Sys.

Ministry of Def. & Support v. Cubic Def. Sys.

United States Court of Appeals for the Ninth Circuit

February 8, 2011, Argued and Submitted, Pasadena, California; December 15, 2011, Filed

No. 99-56380, No. 99-56444

Opinion

 [*1094]  FISHER, Circuit Judge:

These appeals require us to decide whether confirmation of an arbitration award in favor of the Ministry of Defense and Support for the Armed Forces  [**2] of the Islamic Republic of Iran is "contrary to the public policy" of the United States under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, known as the "New York Convention." We hold, consistent with the position of the United States as amicus curiae, that confirmation of the award does not violate any public policy of the United States. We also hold that the district court's judgment is a "money judgment" subject to postjudgment interest, and that a district court has discretion to award prejudgment interest and attorney's fees in an action to confirm an arbitration award under the Convention. Accordingly, we affirm the judgment in part, vacate it in part and remand to the district court for reconsideration of the Ministry's motions for prejudgment interest and attorney's fees.

Background

In 1977, Cubic International Sales Corporation, predecessor in interest to appellant Cubic Defense Systems, Inc. ("Cubic"), a United States corporation, contracted with the Ministry of War of the government of Iran, predecessor of appellee Ministry of Defense and Support for the Armed Forces of the Islamic Republic of Iran ("Ministry"), for sale and service of an air  [**3] combat maneuvering range for use by Iran's military. The Iranian Revolution resulted in nonperformance of the contracts. Consequently, the parties agreed in 1979 that the contracts would be discontinued and that Cubic would try to resell the equipment, with a later settlement of the accounts. In 1981, Cubic sold a modified version of the equipment to Canada.

In 1982, the Ministry filed breach of contract claims against Cubic with the Iran-United States Claims Tribunal at the Hague. In 1987, that tribunal issued an order stating that it lacked jurisdiction to hear the matter. See Ministry of Nat'l Def. of the Islamic Republic of Iran v. Gov't of the United States, 14 Iran-U.S. Cl. Trib. Rep. 276, 1987 WL 503814 (1987).

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665 F.3d 1091 *; 2011 U.S. App. LEXIS 24839 **

THE MINISTRY OF DEFENSE AND SUPPORT FOR THE ARMED FORCES OF THE ISLAMIC REPUBLIC OF IRAN, as Successor in Interest to the Ministry of War of the Government of Iran, Plaintiff-Appellee, v. CUBIC DEFENSE SYSTEMS, INC., as Successor in Interest to Cubic International Sales Corporation, Defendant-Appellant.THE MINISTRY OF DEFENSE AND SUPPORT FOR THE ARMED FORCES OF THE ISLAMIC REPUBLIC OF IRAN, as Successor in Interest to the Ministry of War of the Government of Iran, Plaintiff-Appellant, v. CUBIC DEFENSE SYSTEMS, INC., as Successor in Interest to Cubic International Sales Corporation, Defendant-Appellee.

Subsequent History: Motion granted by, Application denied by Ministry of Def. & Support v. Cubic Def. Sys., 2012 U.S. Dist. LEXIS 81999 (S.D. Cal., June 12, 2012)

On remand at, Costs and fees proceeding at, Motion granted by Ministry of Def. & Support v. Cubic Def. Sys., 2013 U.S. Dist. LEXIS 1625 (S.D. Cal., Jan. 3, 2013)

Prior History:  [**1] Appeal from the United States District Court for the Southern District of California. D.C. No. CV-98-01165-RMB, D.C. No. CV-98-01165-RMB. Rudi M. Brewster, District Judge, Presiding.

Ministry of Def. & Support for the Armed Forces of the Islamic Republic of Iran v. Elahi, 569 F.3d 1004, 2009 U.S. App. LEXIS 13446 (9th Cir. Cal., 2009)

Disposition: AFFIRMED IN PART, VACATED IN PART AND REMANDED.

CORE TERMS

confirmation, district court, arbitration, arbitration award, public policy, prejudgment interest, Regulations, attorney's fees, sanctions, license, argues, money judgment, binding, post-award, amicus curiae, proceedings, parties, reasons, award prejudgment interest, postjudgment interest, final award, contracts, tribunal, grounds, Awards, vacate

Business & Corporate Compliance, Alternative Dispute Resolution, Arbitration, Foreign Arbitral Awards, Federal Arbitration Act, Scope, International Law, Dispute Resolution, Arbitration & Mediation, Arbitration Awards, Judicial Review, Governments, Federal Government, Domestic Security, General Overview, Civil Procedure, Entry of Judgments, Stays of Judgments, Remedies, Judgment Interest, Postjudgment Interest, Prejudgment Interest, Costs & Attorney Fees, Attorney Fees & Expenses