Paul Hastings Wins Arbitration Award for Landmark Southeast Asia Power Project

August 08, 2011

New York, NY (August 8, 2011) - Paul Hastings LLP, a leading global law firm, announced today that a federal court in New York ruled in favor of Paul Hastings energy clients Thai-Lao Lignite (Thailand) Co., Ltd. and Hongsa Lignite (Lao PDR) Co., Ltd. in an international arbitration against the Government of Laos involving a breach of contract in the development and operation of a $2.7 billion power plant, which will be one of the largest power plants in Southeast Asia. The court ruled that the Government of Laos is required to pay the arbitration award, valued at $56 million.

The arbitration award arose out of the Lao Government's premature termination of an agreement whereby Thai-Lao Lignite (Thailand) Co., Ltd. and Hongsa Lignite (Lao PDR) Co., Ltd. were to develop and operate the coal-fired power plant project located in the Hongsa region of Laos.

The companies were forced to seek judicial enforcement after Laos refused to pay the award, which was handed down in November 2009. On August 3, 2011, The U.S. District Court for the Southern District of New York rejected all of Laos' objections to the arbitral award. The ruling underscores the bedrock U.S. policy favoring the prompt enforcement of international arbitration agreements, which represent foreign investors' primary form of legal protection in disputes against the states in which they invest.

The Paul Hastings team was led by New York Litigation of counsel

, and included New York associate .

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