Air Canada Inc v Bolivarian Republic of Venezuela - United States District Court for the District of Columbia Civil Action No 2024-2249 - Memorandum Opinion - 14 August 2026

Country
Year

2026

Summary

Memorandum Opinion

Air Canada has petitioned this Court to confirm and enforce its arbitral award against the Bolivarian Republic of Venezuela ("Venezuela"). Venezuela seeks dismissal of the petition, contending that the award is unenforceable pursuant to Article V of the New York Convention because the Maduro regime represented it in its arbitration with Air Canada, to the exclusion of Venezuela's 2015 National Assembly.

The Court denies Venezuela's motion to dismiss and grants Air Canada's petition to confirm the arbitral award. The New York Convention requires confirmation and enforcement of foreign arbitral awards absent a meritorious Article V defense, and no such defense applies here.

Article V(2)(b)'s public policy exception does not preclude enforcement of the award because the D.C. Circuit has determined that enforcement will not abridge the recognition power of the President of the United States. Article V(1)(a) does not supply Venezuela with a defense to enforcement because it was competent to enter into an arbitration agreement with Air Canada.

Article V(1)(c) does not bar enforcement because the parties agreed to resolve arbitrability disputes in arbitration, and this Court must give considerable deference to the tribunal's determination of the representation issue. Finally, Venezuela's invocation of Article V(1)(b)'s due process protections fails because the 2015 National Assembly had an opportunity to be heard in a meaningful way during the arbitral proceedings.

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