Vamed Management Und Service Gmbh v. Gabonese Republic

At a glance

Parties

VAMED Management und Service GmbH (Austria) v. the Gabonese Republic

Case no.

Civil Case No. 22-3737 (RJL), U.S. District Court for the District of Columbia

Court

United States District Court for the District of Columbia (Judge Richard J. Leon)

Underlying award(s)

ICC Final Award of 21 March 2022 (consolidated arbitration seated in Zurich, Switzerland)

Forum and rules

Petition to confirm a foreign award under the New York Convention and the Federal Arbitration Act (9 U.S.C. §§ 201–208); jurisdiction under the FSIA arbitration exception

Treaty

New York Convention (no investment treaty; the arbitration clauses were in contracts)

Sector

Healthcare; hospital facility management

Outcome

Default judgment granted. The award was confirmed against Gabon, which did not appear.

Amount

Award: €2,581,870.64 plus 8% interest from 14 October 2021, and €33,453.18 in costs plus 5% interest, less €5,000 in costs owed to Gabon (net €2,610,323.82 before interest). Judgment: USD 3,527,347.70, plus post-judgment interest under 28 U.S.C. § 1961.

The dispute

VAMED is an Austrian company that provides facility-management services for hospitals. Between 2001 and 2013 it signed nine contracts with Gabon to manage and maintain several Gabonese hospitals and to train their staff. Gabon did not pay in full. In 2018 VAMED started three ICC arbitrations, which were consolidated before one tribunal seated in Zurich. The parties later agreed a payment schedule (the "protocol"), and the arbitration was suspended in early 2020. It resumed after Gabon stopped paying. The tribunal ruled for VAMED on 21 March 2022. Gabon paid nothing, and VAMED petitioned the U.S. District Court for the District of Columbia to confirm the award. Gabon did not appear, so the court decided on VAMED's motion for default judgment.

Key holdings

1. The court had subject-matter jurisdiction under the FSIA arbitration exception (28 U.S.C. § 1605(a)(6)). VAMED proved the three jurisdictional facts: the arbitration agreements, the award, and a governing treaty, namely the New York Convention, to which both the United States and Switzerland are party. Gabon offered no evidence in rebuttal. pp. 5–7
2. The court had personal jurisdiction over Gabon. Service was properly made under 28 U.S.C. § 1608(a)(3): the Clerk sent the documents, with French translations, by DHL to Gabon's Minister of Foreign Affairs, and they were signed for on 27 February 2023. The first two methods of service were not available. pp. 7–8
3. There was no ground to refuse confirmation under Article V of the New York Convention. Gabon offered no proof. The dispute was an ordinary commercial disagreement that could be settled by arbitration, and enforcing the award does not offend U.S. public policy. VAMED met the documentary requirements of Article IV and filed within the FAA's three-year limit. pp. 8–10
4. The €5,000 in costs that the tribunal awarded to Gabon was set off against VAMED's costs award, because the setoff was not disputed. pp. 10–12, n. 5
5. The euro amounts were converted to U.S. dollars at the rate in force when the award was made (USD 1 = €0.882), because the euro had depreciated since then. Prejudgment interest runs at the rates set by the tribunal: 8% on the principal and 5% on costs. The total judgment is USD 3,527,347.70, plus post-judgment interest at the federal rate. pp. 11–13
6. The court did not decide VAMED's request for attorneys' fees, because VAMED had filed no fee motion or billing records. VAMED may file an appropriate motion. p. 13, n. 6

Procedural history

1. 2001–2013VAMED and Gabon signed nine hospital-services contracts, each with an ICC arbitration clause.
2. 2018VAMED started three ICC arbitrations (Geneva, Zurich and The Hague). By agreement they were consolidated before one tribunal seated in Zurich.
3. Early 2020The arbitration was suspended under the payment protocol. It resumed after Gabon stopped paying.
4. 21 March 2022The ICC tribunal issued its Final Award in VAMED's favour.
5. 27 February 2023The petition and summons were delivered to Gabon's Minister of Foreign Affairs. The Clerk later entered Gabon's default.
6. 13 March 2024The District Court granted default judgment and confirmed the award for USD 3,527,347.70.

Tribunal, counsel and experts

Decided by

• Richard J. Leon Judge, United States District Court for the District of Columbia

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Keywords

• confirmation of foreign arbitral award
• New York Convention
• Federal Arbitration Act
• FSIA arbitration exception
• default judgment
• sovereign immunity
• service under 28 U.S.C. § 1608(a)(3)
• currency conversion
• prejudgment interest
• setoff
• ICC arbitration
• Zurich seat
• hospital management contracts
• Gabon
• VAMED
• enforcement

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