A Washington D.C federal judge on Monday turned down the Republic of Djibouti’s request to investigate whether a foreign court had the authority to seek enforcement of a $486 million international arbitration award on behalf of investors in a terminated deep-water port venture, saying that question should have been explored during arbitration.
The Republic of Djibouti told a federal judge that US federal courts have no right or jurisdiction to enforce a $486 million arbitration award over a terminated deep water port venture, arguing that the enforcement petition threatens the nation’s right to control its territory and national resources.
The tiny horn of Africa country has been putting up a legal fight seeking to escape a Dubai port operator’s lawsuit in Washington, D.C., to enforce a more than $486 million arbitral award issued in London.
The legal tussle is sequel to a dispute over control of a deep-sea terminal as it has emerged that the country has asked its own courts to annul the award
Over the past few years, there has been an effort by legal experts to examine the difficulties inherent to enforcing ICC awards and other commercial awards against sub-Saharan African States or parties, as well as the difficulties of bringing claims and enforcing ICSID (or other treaty-based awards) against sub-Saharan African States in the context of investor/State disputes.
It concludes by summarizing potential means for sub-Saharan African States to improve their international arbitration regimes and the enforcement of international arbitral awards in the region.
The Port of Djibouti is strategically located at the crossroads of one of the busiest shipping routes in the world, linking Europe, the Far East, the Horn of Africa and the Persian Gulf.
