Tag Archives: arbitration

Case of the Day: Hardy Exploration v. Government of India

The case of the day is Hardy Exploration & Production (India), Inc. v. Government of India (D.D.C. 2016). Hardy was a participant, initially with other private firms and later on its own, then in the end with an Indian state-owned company, GAIL (India) Ltd., in a contract with the government of India for the development and production of hydrocarbons in an area off India’s southeastern coast. After Hardy and GAIL found hydrocarbons in 2006, a dispute arose as to whether the find was natural gas (as the government thought) or oil (as Hardy and GAIL thought). If the find was oil, then Hardy, for reasons unimportant here, would have forfeited its interest under the contract. Hardy demanded arbitration in Kuala Lumpur, as per the parties’ arbitration agreement. The tribunal found that Hardy’s position was correct, ordered a restoration of the status quo ante, and awarded damages of 5 billion rupees (about $74 million). India sought to vacate the award in the Indian courts (not the Malaysian courts), but its petition was dismissed. Hardy filed a petition to enforce the award in India, and then sought confirmation in Washington. India’s defense was that service of process (by FedEx) was defective under the FSIA. Hardy countered that the contract contained a special arrangement for service of process, and that service was therefore proper under 28 U.S.C. § 1608(a)(1).
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Case of the Day: In re Kleimar N.V.

The case of the day is In re Application of Kleimar N.V. (S.D.N.Y. 2016). Kleimar was engaged in an arbitration against Dalian Dongzhan Group Co. before the London Maritime Arbitration Association. Kleimer brought a § 1782 application seeking leave to take discovery from Vale S.A., a non-party, for use in the arbitration. The issue was whether the LMAA tribunal, a private arbitral tribunal, is a “tribunal” for purposes of § 1782.
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