Corporacion AIC, S.A. v. Hidroelectrica Santa Rita, S.A.

At a glance

Parties

Corporacion AIC, S.A. (Guatemala), petitioner, v. Hidroelectrica Santa Rita S.A. (Guatemala), respondent

Case no.

Civil Action No. 19-20294-Civ-Scola (S.D. Fla.)

Court

U.S. District Court for the Southern District of Florida (Judge Robert N. Scola, Jr.)

Underlying award(s)

Partial award and final award from an international arbitration seated in Miami, started by HSR in October 2015

Treaty

New York Convention; Federal Arbitration Act, Chapter 2

Sector

Construction; hydroelectric power

Outcome

Motion to vacate denied and case dismissed (3 August 2020). The Court adopted the magistrate judge's report and recommendation.

The dispute

Corporacion AIC, S.A. and Hidroelectrica Santa Rita S.A. (HSR) are both Guatemalan corporations. They had a contract dispute over the construction of a hydroelectric power plant in Guatemala. HSR started arbitration in Miami in October 2015, and the tribunal issued a partial award and a final award. AIC asked the federal court in Miami to vacate both awards under section 10(a)(4) of the Federal Arbitration Act, arguing that the arbitrators had exceeded their powers. HSR replied that Eleventh Circuit precedent allows a non-domestic award to be vacated only on the grounds listed in Article V of the New York Convention.

Key holdings

1. The parties agreed that the awards fall under the New York Convention. The only statutory routes for enforcement are therefore the Convention and Chapter 2 of the FAA. p. 1–2
2. Under binding Eleventh Circuit precedent, a non-domestic arbitration award can be vacated only on the seven defences listed in Article V of the New York Convention. Domestic grounds under FAA section 10 are not available. p. 2
3. AIC accepted that it had raised none of the Article V defences and relied only on 9 U.S.C. § 10(a)(4), so its motion to vacate failed. The Court overruled AIC's objections, adopted the report and recommendation in full, denied the petition and dismissed the case. p. 2

Procedural history

1. October 2015HSR starts arbitration proceedings in Miami against AIC.
2. The tribunal issues a partial award and a final award. AIC files a petition to vacate them, later amended (ECF No. 31-1).
3. Magistrate Judge Chris M. McAliley recommends denying the second amended petition (ECF No. 41). AIC objects (ECF No. 45-1).
4. 3 August 2020Judge Scola adopts the report and recommendation, denies vacatur and dismisses the case.

Tribunal, counsel and experts

Decided by

• Jr. Robert N. Scola Judge, U.S. District Court for the Southern District of Florida
• Chris M. McAliley U.S. District Court for the Southern District of Florida, U.S. District Court for the Southern District of Florida — appointed by a court (Magistrate Judge; issued the report and recommendation)

Run a conflict check on these names →

Keywords

• vacatur
• set-aside
• New York Convention Article V
• non-domestic award
• Federal Arbitration Act Chapter 2
• 9 U.S.C. § 10(a)(4)
• excess of powers
• Eleventh Circuit
• Inprotsa v. Del Monte
• Industrial Risk Insurers
• hydroelectric plant
• Guatemala
• construction dispute
• Miami seat

Summary generated with AI from the published documents — refer to the award for the authoritative text.