Chromalloy Aeroservices v. Arab Republic of Egypt

939 F. Supp. 907 (1996)

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Chromalloy Aeroservices v. Arab Republic of Egypt

United States District Court for the District of Columbia
939 F. Supp. 907 (1996)

Facts

Chromalloy Aeroservices, Inc. (CAS) (plaintiff), a United States corporation, entered into a contract under which CAS agreed to provide parts, maintenance, and repair for helicopters belonging to the Air Force of the Arab Republic of Egypt (Egypt) (defendant). The contract contained an arbitration clause. Egypt terminated the contract, and CAS notified Egypt that it rejected the cancellations and commenced arbitration proceedings. The arbitral panel issued an award against Egypt and in favor of CAS. CAS filed an action in United States district court to enforce the award. While this action was pending, Egypt filed an appeal of the award in Egyptian court. The Egyptian Court of Appeals suspended the award, and Egypt moved to dismiss the district court action. While Egypt’s motion to dismiss CAS’s enforcement action was pending, the Egyptian Court of Appeals nullified the award. Egypt then argued that the district court should deny CAS’s petition to enforce the award out of deference to the Egyptian court. CAS argued that the award should be confirmed because the Egyptian court’s nullification decision was not consistent with the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) or United States arbitration laws.

Rule of Law

Issue

Holding and Reasoning (Green, J.)

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