Getma International v. Republic of Guinea

Getma International (Getma) (plaintiff), a French company, and the country of Guinea (defendant) submitted a contract dispute to arbitration rules of the Common Court of Justice and Arbitration of the Organization for the Harmonization of Business Law in Africa (CCJA). The CCJA set the arbitrators’ fee at approximately €61,000. During the arbitration proceedings, the arbitrators contacted the CCJA repeatedly about increasing the arbitrators’ fee to €450,000. The CCJA repeatedly denied the fee increase, stating that the fee was set. The arbitrators then told the parties that they would withhold the arbitral award until the parties paid them €450,000. When the CCJA learned of the arbitrators’ demand, the CCJA warned Getma that the award would be subject to invalidation if it included an invalid arrangement for the arbitrators’ fee. A few days later, the arbitrators issued an award in favor of Getma for €39 million, plus interest. The arbitrators continued to pursue their increased fee, and eventually, Getma paid the €450,000. Guinea filed an annulment petition with the CCJA, seeking to have the award set aside. The CCJA annulled the award on the ground that the arbitrators breached their duty by ignoring the mandatory fees. Getma nonetheless filed an action in United States district court seeking enforcement of the annulled award. The district court denied enforcement, and Getma appealed. Getma argued that the CCJA’s annulment was improper because a member of the CCJA panel publicly boasted about his influence in the decision and also because the CCJA’s decision improperly denied the parties’ rights to contract around the CCJA’s fee schedule.