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United Kingdom

US District Court rejects res judicata from post-commencement Libyan judgment and refuses stay; confirms Swiss-seated arbitral award against Libya under the New York Convention

Published on: 24 February 2025

Published by a LexisNexis Arbitration expert
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Article summary

Etrak v Libya, 2025 US Dist LEXIS 19756 (D.D.C. 2025), Case No 22-cv-864 (JMC)

What are the practical implications of this case?

In a New York Convention confirmation action brought in a US court, a state cannot evade recognition or enforcement of an unfavourable arbitral award by relying on: (i) an adverse ruling from its own courts issued after the arbitration commenced—even if that court case was filed earlier—because res judicata does not bite; or (ii) the existence of parallel confirmation proceedings in other jurisdictions. Interpreting the Convention strictly, the court explained that a stay of enforcement is permissible only where an application to set aside or suspend the award is before a competent authority in the country of the seat or the law governing the award—here, Switzerland. Libya had previously submitted such a bid to the Swiss courts and lost, and crucially, no application remained pending...

What was the background? Factual background

From the 1980s, Etrak, a Turkish enterprise, carried out public construction works for Libya...

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