Second Circuit Issues Two Key Enforcement Rulings
February 01, 2012
BY JAMES E. BERGER & CHARLENE SUN
The U.S. Court of Appeals for the Second Circuit has issued two significant enforcement-related decisions in recent weeks. The first, involving a proceeding to confirm an arbitration award against Peru under the Panama Convention, mandated the dismissal of that proceeding on forum non conveniens grounds, and threatens to introduce new uncertainty into the confirmation process in Second Circuit courts.
The second, involving a U.S. corporation's attempt to prospectively prevent enforcement of an Ecuadorian judgment on the grounds that the judgment was fraudulent and tainted by political influence, represents a key interpretation of the uniform act governing enforcement of foreign judgments and appears to set limits on the authority of U.S. courts to protect parties from vexatious foreign litigation.
The Second Circuit is a key court whose decisions can affect international disputes far outside its borders, and these two decisions constitute watershed developments that any U.S. or non-U.S. party who may become involved in a cross-border dispute should be aware of.