Braspetro Oil Services Company (Brasoil v. The Management and Implementation Authority of the Great Man-Made River Project (GMRA)

24 Y.B. Comm. Arb. 296 (1999)

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Braspetro Oil Services Company (Brasoil v. The Management and Implementation Authority of the Great Man-Made River Project (GMRA)

France Court of Appeal
24 Y.B. Comm. Arb. 296 (1999)

Facts

An arbitration before a panel organized by the International Chamber of Commerce (ICC) issued an award holding Braspetro Oil Services Company (Brasoil) (plaintiff) liable to the Management and Implementation Authority of the Great Man-Made River Project (GMRA) (defendant) for malfunctions in water wells installed by Brasoil for GMRA in Libya. Brasoil subsequently asked the arbitral panel to revise its award based on new evidence that emerged in the damages phase of the arbitration, which suggested GMRA had acted fraudulently. The arbitral panel permitted the parties to brief the issue of the admissibility of Brasoil’s request for revision. Brasoil submitted a brief limited to the issue of admissibility. However, GMRA made a 500-page submission, arguing the merits of the fraud claim. The arbitral panel ultimately issued an order denying Brasoil’s request for revision. The arbitral panel did not submit the order to the ICC Court of Arbitration for approval. Brasoil challenged the order before the France Court of Appeal in Paris, arguing that the arbitral panel did not limit its ruling to the threshold issue of admissibility of Brasoil’s claim, but instead decided the merits of Brasoil’s fraud claim without notice and full hearing in violation of Brasoil’s due-process rights. Brasoil further argued that because the order was truly a determination of the issue on the merits, it was actually an award, which should have been submitted to the ICC Court of Arbitration for approval pursuant to Article 27 of the ICC Arbitration Rules.

Rule of Law

Issue

Holding and Reasoning ()

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