The case of the day is Albaniabeg Ambient Sh.p.k. v. Enel S.p.A. (S.D.N.Y. 2016). BEG S.p.A., an Italian company, contracted with the government of Albania to build and operate a hydroelectric plant. BEG also had a contract with Enel S.p.A., another Italian firm, to study the feasibility of the project. Later, BEG had a similar contract with Enelpower S.p.A., an Enel subsidiary. The Enelpower contract had an agreement to arbitrate.
A dispute arose. BEG commenced an arbitration against Enelpower for breach of contract. The tribunal, seated in Rome, found that Enelpower was not liable to BEG. The Italian courts refused to vacate the award despite a claim that one of the arbitrators had a conflict of interest.
Later, Albaniabeg, a subsidiary of BEG, brought an action against Enel and Enelpower in the Albanian court. The claims were tort claims arising out of the hydroelectric project. The Albanian court entered a judgment for more than € 25 million against Enel and Enelpower, which was affirmed on appeal. The European Court of Human Rights rejected Enel and Enelpower’s challenge to the judgment.
Albaniabeg brought an action in the New York Supreme Court for recognition of the Albanian judgment. Continue reading Case of the Day: Albaniabeg Ambient v. Enel
The case of the day, Ingaseosas Int’l Co. v. Aconcagua Inv. Ltd. (S.D. Fla. 2011), raises interesting questions of federal subject matter jurisdiction of motions to vacate awards made under the New York Convention. Ingaseosas and Aconcagua were both British Virgin Islands firms. They entered into a stock purchase agreement concerning shares in another BVI company that owned a Coca-Cola franchise in Ecuador. The agreement contained an arbitration clause requiring arbitration in disputes in Miami, subject to New York law. When the parties failed to consummate the stock purchase agreement, Aconcagua demanded arbitration and asserted a claim for breach of contract. Ingaseosas counterclaimed. The tribunal’s award was in favor of Aconcagua. Aconcagua sought recognition and enforcement of the award in the courts of the British Virgin Islands, and Ingaseosas sought to vacate the award in the federal court in Miami. When Ingaseosas failed to post a bond in the BVI proceeding, the court there granted Aconcagua’s application and entered a judgment in its favor. Aconcagua then filed a motion in the U.S. proceeding to confirm the award. The question in the case was whether the U.S. court had subject matter jurisdiction of Ingaseosas’s motion to vacate the award.
Continue reading Case of the Day: Ingaseosas International v. Aconcagua Investing