Opinion ID: 1037860
Heading Depth: 3
Heading Rank: 2

Heading: The Arbitral Award Exception

Text: In addition to the implied waiver exception, the District Court also correctly concluded that Argentina waived its sovereign immunity pursuant to the arbitral award exception. The arbitral award exception provides, in relevant part, that [a] foreign state shall not be immune from the jurisdiction of courts of the United States or of the States in any case . . . in which the action is brought . . . to confirm an award made pursuant to . . . an agreement to arbitrate, if . . . the agreement or award is or may be governed by a treaty or other international agreement in force for the United States calling for the recognition and enforcement of arbitral awards. 28 U.S.C. § 1605(a)(6). To our knowledge, every court to consider whether awards issued pursuant to the ICSID Convention fall within the arbitral award exception to the FSIA has concluded that they do. See, e.g., Cont’l Cas. Co. v. Argentine Republic, 893 F. Supp. 2d 747, 751 (E.D. Va. 2012) (“Nor, as several courts have noted, is there any doubt that ICSID arbitral awards fall within th[e] [arbitral award] immunity exception.”); Funnekotter v. Republic of Zimbabwe, No. 09 Civ. 8168(CM), 2011 WL 666227 at  (S.D.N.Y. Feb. 10, 2011) (similar); Siag v. Arab Republic of Egypt, No. M-82, 2009 WL 1834562 (S.D.N.Y. June 19, 2009) (entering a judgment recognizing an ICSID Convention award against Egypt). We agree. Indeed, inasmuch as (1) the Award was issued pursuant to the ICSID Convention, which is “a treaty or other international agreement in force for the United States calling for the recognition and enforcement of arbitral awards,” 28 U.S.C. § 1605(a)(6)(B),22 and (2) the United States and Argentina are both parties to the ICSID Convention, see note 20, ante, Argentina’s 22 After the United States became a party to ICSID Convention, Congress passed “implementing legislation,” which provided that “[a]n award of an arbitral tribunal rendered pursuant to chapter IV of the [ICSID Convention] shall create a right arising under a treaty of the United States. The pecuniary obligations imposed by such an award shall be enforced and shall be given the same full faith and credit as if the award were a final judgment of a court of general jurisdiction of one of the several States.” 22 U.S.C. § 1650a(a). 18 agreement to submit its dispute to arbitration under the ICSID Convention constituted a waiver of immunity from suit pursuant to 28 U.S.C. § 1605(a)(6)(B).23