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Bechtel Co. Ltd. v. Dubai

360 F. Supp. 2d 136 (2005)

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Bechtel Co. Ltd. v. Dubai

United States District Court for the District of Columbia
360 F. Supp. 2d 136 (2005)

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Facts

Bechtel Co. Ltd. (plaintiff) filed an action in the United States district court to enforce an arbitral award issued in its favor and against the Department of Civil Aviation of the Government of Dubai (Dubai) (defendant). Bechtel and Dubai agreed that the laws of Dubai governed their agreement and any disputes arising the agreement. While the action in the United States was pending, a court in Dubai overturned the arbitral award because certain witnesses had not been placed under oath, and Bechtel appealed to the Dubai Court of Cassation. The United States district court denied the motion to dismiss and stayed the action pending the outcome of the Dubai appeal. The Dubai Court of Cassation subsequently affirmed the nullification of the arbitral award, and Dubai renewed its motion to dismiss the action pending in the United States district court for failure to state a claim. Bechtel argued that the court should enforce the award pursuant to the Federal Arbitration Act (FAA) because of the fundamental unfairness in the rulings of the Dubai courts.

Rule of Law

Issue

Holding and Reasoning (Robertson, J.)

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