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Djibouti v. Doraleh Container and Others, Memorandum Opinion and Order of the United States District Court for the District of Columbia, April 24, 2023

24 Apr 2023
Republic of Djibouti, Djibouti Ports and Free Zone Authority, and Port de Djibouti SA v. Doraleh Container Terminal SA, DP World Djibouti FZCO and Dubai International Djibouti FZE (I), LCIA No. 142732
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Memorandum Opinion and Order of the United States District Court for the District of Columbia
Document Details:
LISTED PARTICIPANTS
Memorandum Opinion and Order of the United States District Court for the District of Columbia
Participants listed are for this document only and may not include all participants involved in the entire case. Always consult the original documents.
Claimant appointee
Respondent appointee
Tribunal/Panel chair
Arbitrator(s)
Sole Arbitrator
ICSID Annulment Committee president
ICSID Annulment Committee members
WTO Appellate Body members
WTO Appellate Body chair
Judges
Beryl A. Howell
Claimant's counsel
Claimant's law firm
Respondent's counsel
Respondent's law firm
Other counsel
Claimant's expert
Claimant's expert firm
Respondent's expert
Respondent's expert firm
Claimant's witness
Respondent's witness
Other witnesses
Tribunal secretary
Tribunal assistant
Third-party funder
Entities
Djibouti, Djibouti Ports and Free Zone Authority, Port de Djibouti SA, Doraleh Container Terminal SA, DP World Djibouti FZCO, Dubai International Djibouti FZE
Country
United States
Print reporter
Document Summary
Memorandum Opinion and Order of the United States District Court for the District of Columbia
This summary note is machine-generated. Always consult the original materials.

Procedural Posture

This Memorandum Opinion and Order, issued by the United States District Court for the District of Columbia, addresses post-judgment motions following the Court's February 17, 2023 judgment confirming two foreign arbitral awards totaling approximately $541 million in favor of Doraleh Container Terminal S.A. against the Republic of Djibouti. Following its appeal of the judgment, Djibouti moved to stay execution without posting a supersedeas bond pursuant to Federal Rule of Civil Procedure 62(b). Concurrently, the Petitioner cross-moved for a declaration under 28 U.S.C. § 1610(c) that a reasonable period of time had elapsed, which would permit enforcement actions to commence.

Court's Analysis and Findings

The Court denied Djibouti's motion for an unbonded stay, firmly rejecting the argument that foreign sovereigns are presumptively entitled to such relief. Applying the standard established in Federal Prescription Service, Inc. v. American Pharmaceutical Association, the Court found no unusual circumstances warranting a departure from the default rule requiring a full supersedeas bond. The Court emphasized that Djibouti is not a resident of the district, the judgment amount is highly significant, and Djibouti's sovereign immunity could be invoked to shelter assets, thereby unduly endangering the judgment creditor's interest in ultimate recovery. Furthermore, the Court denied Djibouti's ancillary request to stay post-judgment discovery, noting the generally expansive permissiveness of discovery in aid of execution.

Decision

The Court denied Djibouti's motion for an unbonded stay without prejudice, noting that the Respondent remains free to obtain a stay by posting a court-approved bond. The Court also denied the Petitioner's cross-motion for relief under 28 U.S.C. § 1610(c) without prejudice as premature, given that only two months had elapsed since the entry of judgment and Djibouti might still elect to post a bond. The Petitioner was granted leave to renew its motion if no stay is in effect after sixty days.