The Island Territory of Curaçao v. Solitron Devices, Inc.

The Island Territory of Curaçao (Curaçao) (plaintiff) and Solitron Devices, Inc. (Solitron) (defendant), a New York-based manufacturer of electronic products, entered into an agreement under which Curaçao agreed to develop an industrial park including two factory buildings, which Solitron agreed to lease for 20 years and at which Solitron agreed to operate a manufacturing plant, creating jobs in Curaçao. The parties agreed to arbitrate any disputes arising under the contract. Solitron did not enter into a lease agreement or bring its manufacturing operations to Curaçao as promised, claiming that a hike in the minimum wage made performance of the contract impossible. Curaçao commenced arbitration proceedings in Curaçao. Solitron did not participate in the arbitration proceedings but received notice of its progression. The arbitral tribunal issued an award in favor of Curaçao, and Curaçao procured a judgment to enforce the award in Curaçao. Curaçao then filed an action in United States federal district court, seeking recognition and enforcement of the Curaçao arbitration award and judgment. The district court entered judgment in favor of Curaçao, and Solitron appealed, arguing that the judgment on the arbitral award was not enforceable pursuant to Article 53 of the New York Civil Practice Law and Rules, which permitted enforcement of foreign money judgments, because the law was preempted by the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), and that the convention did not apply for a variety of reasons. Solitron also argued that even if Article 53 did apply, the judgment should not be enforced because the Curaçao court lacked jurisdiction over Solitron.