Baker Marine, Ltd. v. Chevron, Ltd. - 191 F.3d 194 (2d Cir. 1999)

Rule:

Under American law, when a party brings an action to confirm an arbitration award falling under the 1958 United Nations Convention on Recognition and Enforcement of Foreign Arbitration Awards (Convention), 21 U.S.T. 2517, 330 U.N.T.S. 38, a court shall confirm the award unless it finds one of the grounds for refusal or deferral of recognition or enforcement of the award specified in the said Convention. 9 U.S.C.S. § 207.

Facts:

A dispute arose between petitioner marine barge company, respondent oil company and respondent marine contractor concerning contracts to provide barge services for oil production in Nigeria. The Nigerian Federal High Court set aside arbitration awards originally granted in favor of petitioner by arbitrators in Nigeria. Petitioner then sought enforcement of original arbitration awards under chapter 2 of Federal Arbitration Act, 9 U.S.C.S. §§ 201-09, which implemented 1958 United Nations Convention on Recognition and Enforcement of Foreign Arbitration Awards, 21 U.S.T. 2517, 330 U.N.T.S. 38, in United States. The petitioner appealed denial of petitions to confirm foreign arbitration awards.

Issue:

Could the U.S. court enforce a foreign arbitral award under the United Nations Convention on Recognition and Enforcement of Foreign Arbitration Awards, notwithstanding the fact that such an award has been set aside by the Nigerian courts?

Answer:

No.

Conclusion:

The court of appeals affirmed the denial of petitions. The parties contracted in Nigeria that their disputes would be arbitrated under Nigerian law. Nothing in the contracts suggested that the parties intended United States domestic arbitral law to govern their disputes. The court held that the petitioner failed to show any adequate reason for refusing to recognize judgments of Nigerian court.