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Olive Group FZ-LLC v. Afghanistan Civil Aviation Authority (ACAA), PCA Case No. 2021-34

Short Name:

Olive Group v. Afghanistan

Applicable arbitration rules:
Seat of Arbitration:
Investment treaty:
Applicable legal instruments:
Economic sector:
Amount of damages:
US $13,289,911
Other remedy:
The Tribunal ordered Respondent to pay Claimant USD 13.3M in damages, plus pre- and post-award interest, and USD 747k plus AED 337k and EUR 3k in costs. All other claims were dismissed.

Available documents

28 Nov 2023
Final Award
Document Details:
PARTICIPANTS
Final Award
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
Claimant's counsel
Other counsel
Claimant's expert
Respondent's expert
Claimant's witness
Respondent's witness
Other witnesses
Tribunal assistant
Country
Print reporter
Entities
Document Summary
Final Award
This summary note is machine-generated. Always consult the original materials.


23 Jul 2024
Petition To Recognize and Enforce Foreign Arbitration Award
Document Details:
PARTICIPANTS
Petition To Recognize and Enforce Foreign Arbitration Award
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
Claimant's counsel
Respondent's counsel
Other counsel
Claimant's expert
Respondent's expert
Claimant's witness
Respondent's witness
Other witnesses
Tribunal secretary
Tribunal assistant
Country
Country in which this occurs:
Print reporter
Entities
Document Summary
Petition To Recognize and Enforce Foreign Arbitration Award
This summary note is machine-generated. Always consult the original materials.


5 May 2026
Memorandum Opinion of the US District Court for District of Columbia
Document Details:
PARTICIPANTS
Memorandum Opinion of the US District Court for 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
Claimant's counsel
Respondent's counsel
Other counsel
Claimant's expert
Respondent's expert
Claimant's witness
Respondent's witness
Other witnesses
Tribunal secretary
Tribunal assistant
Country
Country in which this occurs:
Print reporter
Entities
Document Summary
Memorandum Opinion of the US District Court for District of Columbia
This summary note is machine-generated. Always consult the original materials.


Case Summary
This summary note is machine-generated. Always consult the original materials.

In Olive Group v. Afghanistan, a commercial arbitration administered by the Permanent Court of Arbitration under the 2010 UNCITRAL Rules, a sole arbitrator awarded the claimant significant damages for breach of a security services contract. The dispute, governed by Afghan law and seated in Dubai, arose from a 2018 agreement (the ANAP Contract) under which Olive Group provided aviation security services for four international airports in Afghanistan. The claimant sought over USD 24 million for multiple breaches by the Afghanistan Civil Aviation Authority (ACAA), including the wrongful withholding of payments styled as "penalties" and a 10% contractual retention, the premature termination of the contract which cut off payments for the final nine months, and delays in returning a performance guarantee. Olive Group also claimed damages for ACAA's alleged interference that led to the non-renewal of its security license, resulting in the loss of a separate contract with the Canadian Embassy. The arbitral proceedings were significantly impacted by the respondent's prolonged non-participation following the 2021 change of regime in Afghanistan. The Sole Arbitrator, Victor Leginsky, proceeded with the case despite ACAA's initial absence and subsequent difficulties in retaining counsel. The arbitrator meticulously documented the numerous opportunities afforded to the respondent to present its case, ultimately rejecting its later complaints of procedural unfairness and conducting the final hearing in its absence. On the merits, the tribunal found largely in favor of the claimant. It determined that the ACAA had wrongfully withheld USD 1.28 million in "penalties" and USD 2.75 million in retention, finding no basis for these deductions in the ANAP Contract or Afghan law. The arbitrator also held that the respondent’s unilateral reduction of the contract term constituted a premature termination and a breach of contract, entitling Olive Group to the full value of the unpaid final nine months, amounting to USD 9.18 million. Further, damages were awarded for the wrongful delay in returning the performance guarantee. However, the tribunal dismissed the claimant's claims concerning the manning cap fees and the consequential loss of its contract with the Canadian Embassy. It found no contractual duty for the ACAA to secure exemptions or guarantee the license renewal, attributing the harm to actions by other government ministries not party to the arbitration. Ultimately, the tribunal awarded Olive Group approximately USD 13.3 million in principal damages, plus pre- and post-award interest. Citing the claimant's substantial success and the respondent's conduct which delayed the proceedings, the arbitrator ordered the ACAA to bear the majority of the arbitration costs and pay the claimant's full legal fees. Following the award, Olive Group initiated enforcement proceedings in the United States District Court for the District of Columbia. In June 2025, the court entered a default judgment against the ACAA, confirming the arbitral award, which with interest and costs totaled over USD 15.2 million. Olive Group then sought to garnish approximately USD 3.1 million in assets held for the ACAA by the International Air Transport Association (IATA) in a Swiss bank account. However, in a Memorandum Opinion dated May 5, 2026, Judge Sparkle Sooknanan denied the garnishment request. The court concluded that it lacked personal jurisdiction over IATA, a Canada-incorporated association. The court rejected Olive Group’s arguments that IATA’s office and activities in the District of Columbia were sufficient to establish general jurisdiction, finding them based on an outmoded “doing business” theory. The court also declined to apply judicial estoppel based on IATA’s representations in a prior lawsuit.