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Procedural Posture
This document is a Petition to Recognize and Enforce a Foreign Arbitral Award filed by Horse Tours and Travel SAE (Petitioner) against Iraqi Airways Company, the Ministry of Transport of the Republic of Iraq, and the Republic of Iraq (Respondents) in the United States District Court for the District of Columbia. The Petitioner seeks confirmation of a July 26, 2023 arbitral award rendered in Cairo, Egypt, pursuant to Chapter 2 of the Federal Arbitration Act (FAA) and the New York Convention.
Factual and Procedural Background
The underlying arbitration arose from a 2001 general agency agreement under which the Petitioner served as the exclusive sales agent for Iraqi Airways in Egypt. The arbitral tribunal determined that the Respondents deliberately breached the agreement in bad faith by terminating and suspending the contract without legitimate justification. The tribunal awarded the Petitioner approximately $786 million in damages, encompassing incurred expenses, lost profits, and compensation for reputational harm, alongside arbitration costs. The Egyptian Court of Cassation subsequently dismissed the Respondents' appeal, rendering the award final and binding at the seat of arbitration.
Legal Basis for Enforcement
The Petitioner asserts that the District Court possesses subject matter jurisdiction pursuant to the Foreign Sovereign Immunities Act (FSIA), specifically invoking the arbitration and implied waiver exceptions to sovereign immunity (28 U.S.C. § 1605(a)(6) and (a)(1)). The petition contends that the Republic of Iraq is jointly and severally liable for the award, arguing that the Ministry of Transport functions as an integral political subdivision of the state rather than a distinct legal entity. The Petitioner requests the entry of judgment confirming the award in its entirety, seeking a total of over $968 million inclusive of post-award interest.