Summary

MEMORANDUM OPINION

This case involves two treaties ratified by the United States: the U.N. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and the Inter- American Convention on International Commercial Arbitration (Panama Convention). Together, these treaties espouse an emphatic federal policy in favor of arbitral dispute resolution and establish an international legal regime to ensure the efficient satisfaction of arbitral awards in signatory countries. Congress has implemented both treaties in the Federal Arbitration Act (FAA).

Relying on this framework, Sigma Constructores, S.A. (Sigma), a construction and engineering company, sued the Republic of Guatemala to enforce an arbitral award that resolved a dispute between the Parties over the early termination of a highway construction contract. The arbitral award was rendered in Guatemala, which is a party to both the New York and Panama Conventions. In parallel proceedings, Guatemala is currently challenging that arbitral award in its domestic courts.

Guatemala now seeks to dismiss this action for lack of subject matter jurisdiction or personal jurisdiction under the Federal Sovereign Immunities Act (FSIA). In the alternative, Guatemala asks this Court to dismiss this action under the forum non conveniens doctrine or to stay proceedings pending the ongoing judicial proceedings in Guatemala. Because none of these arguments are availing, the Court denies Guatemala's motion in its entirety. Sigma's petition falls squarely within the framework set out in the FAA and the New York and Panama Conventions.

Thus, the Court is required to exercise jurisdiction in this case. And the Court expects to move expeditiously in resolving this dispute.