Fifth Circuit: Courts Lack Jurisdiction Over Foreign Arbitration Awards

First Investment Corporation of the Marshall Islands v. Fujian Mawei Shipbuilding, Limited No. 12-30377

http://www.ca5.uscourts.gov/opinions/pub/12/12-30377-CV0.wpd.pdf

Before STEWART, Chief Judge, KING and OWEN, Circuit Judges.

AFFIRMED. (December 21, 2012).

Posted in New York Convention, Arbitration, Personal Jurisdiction

The Fifth Circuit affirms that a Court may dismiss a petition to confirm a foreign arbitration award for lack of personal jurisdiction under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The Court’s opinion discusses recent Supreme Court precedent that clarifies that foreign entities that are neither present nor have property in the United States are nevertheless entitled to due process protections to challenge the exercise of personal jurisdiction over them. The Court further holds that even though the New York Convention does not list personal jurisdiction as a ground for denying enforcement, the Due Process Clause requires that a Court dismiss an action, on motion, over which it has no personal jurisdiction.

On Appeal from the United States District Court for the Eastern District of Louisiana (Lance M. Africk).