Summary

John Baldwin and Shawn Scott are American entrepreneurs who created three international corporations to invest in the casino and gaming industry in Laos. The venture failed, culminating in legal disputes with the Government of the Lao People's Democratic Republic (Lao PDR). Two of the entrepreneurs' corporations participated in multiple arbitration proceedings against Lao PDR in international tribunals, and those tribunals issued Lao PDR monetary awards against the two businesses. Despite repeated attempts, Lao PDR has been unable to collect on these awards.

In this action, Lao PDR seeks to recover against Baldwin, Scott, and all three of their corporations by filing a petition under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention). The Federal Arbitration Act (FAA), which implemented the New York Convention, vests jurisdiction in federal district courts to enforce international arbitral awards. Lao PDR's petition asserts that, while Baldwin, Scott, and their third corporation did not participate in the foreign arbitration proceedings, they are alter-egos of the two corporations named in the arbitral awards and should also be held liable for the awards. The district court concluded that it lacked jurisdiction to enforce the awards against the alleged alter-ego parties because they were not named as debtors in the awards, and Lao PDR was required to bring a separate action against them. We disagree. Under the FAA, the district court had jurisdiction over Lao PDR's petition to enforce the foreign arbitral awards against the three related but unnamed parties, and it should have evaluated the merits of the Lao PDR's alter-ego theory.

Therefore, we reverse and remand for further proceedings.

Appeal from the United States District Court for the Northern Mariana Islands