Jurisdiction(s):
United Kingdom

French Court of Cassation upholds Paris Court of Appeal: Sulu heirs’ US$15bn Sabah award invalid; no arbitration agreement with Malaysia; enforcement proceedings dismissed

Published on: 08 November 2024

Published by a Law360 reporter

Legal News

Article summary

On 6 November 2024, the court held that the heirs could not overturn the Paris Court of Appeal’s decision, according to a statement issued by a Malaysian minister. The appeals court also found in favour of Malaysia, concluding that the US$15bn award was invalid and therefore of no effect under French law.

In a statement on 7 November 2024, Minister Azalina Othman Said said the Court of Cassation (France’s supreme court for civil and criminal matters) confirmed that the original US$15bn award to the heirs was a ‘sham’. The Supreme Court agreed with the Paris Court of Appeal that Gonzalo Stampa — the Spanish lawyer and arbitrator who first ordered Malaysia to pay the heirs US$15bn in a territorial dispute — wrongly decided he had jurisdiction to hear their claims and to make such orders.

The higher court added that the governing contract stipulated such disputes could only be brought before the British general consul in Borneo. Following this ruling, Othman Said noted in her statement, the Paris Court of Appeal will, in due course, proceed to annul the so‑called final award, referring to the award that ordered Malaysia to pay US$14.9bn...

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