Venezuela US Srl v. Bolivarian Republic of Venezuela

At a glance

Parties

Venezuela US SRL (VUS), a Barbadian company, v. the Bolivarian Republic of Venezuela

Case no.

Civil Action No. 22-cv-3822 (JMC)

Court

United States District Court for the District of Columbia (Judge Jia M. Cobb)

Underlying award(s)

PCA arbitration under the UNCITRAL Arbitration Rules: interim award on jurisdiction (26 July 2016), Partial Award on Jurisdiction and Liability (5 February 2021), Final Award (4 November 2022)

Forum and rules

Petition to recognise and enforce a foreign arbitral award under the New York Convention and 9 U.S.C. § 207; jurisdiction under the FSIA arbitration exception

Treaty

Barbados–Venezuela BIT (Agreement for the Promotion and Protection of Investments)

Sector

Oil; unpaid dividends

Outcome

Petition granted (9 June 2025). Venezuela's public policy defence based on the U.S. recognition of the Guaidó Interim Government was rejected, and final judgment was entered for VUS (14 August 2025).

Amount

Final Award: USD 58,870,898 for unpaid dividends plus interest, and costs. Judgment: USD 137,832,778 as of 23 June 2025. This comprises USD 58,870,898 compensation; USD 46,624,436 pre-award interest; USD 27,930,116 post-award interest; USD 3,215,534.99 legal costs plus USD 491,772 interest; and USD 607,163.35 arbitration costs plus USD 92,857.31 interest. Post-judgment interest runs under 28 U.S.C. § 1961.

The dispute

VUS, a company registered in Barbados, has interests in a Venezuelan oil field. It did not receive certain dividends, so in March 2013 it began arbitration against Venezuela under the Barbados–Venezuela BIT, before the PCA in The Hague under the UNCITRAL Rules. The tribunal found Venezuela liable for non-payment of dividends in 2008 and 2009 and, on 4 November 2022, awarded USD 58,870,898 plus interest and costs. VUS petitioned the D.C. District Court to recognise and enforce the Final Award under the New York Convention. Venezuela, represented by the Interim Government, argued that enforcement would breach U.S. public policy (Article V(2)(b)). In its view, the Maduro regime had represented Venezuela in later phases of the arbitration, so enforcing the award would contradict the President's 2019 recognition of the Interim Government as Venezuela's sole legitimate government.

Key holdings

1. The Court has subject-matter jurisdiction under the FSIA arbitration exception (28 U.S.C. § 1605(a)(6)) and personal jurisdiction under 28 U.S.C. § 1330(b). Venezuela contested neither. Memorandum Opinion, p. 5
2. The Court adopts the Eleventh Circuit's Técnicas Reunidas rule: a party waives a New York Convention public policy defence if it fails to object in time during the arbitration despite full knowledge of the facts. Venezuela did not waive the defence under that rule. It knew by February 2021 that the Maduro regime had taken over its representation. But the record does not show it knew, before the arbitration ended, that enforcement would be sought in a forum that recognised the Interim Government, or that the substitution was a legal error. Memorandum Opinion, pp. 7–9
3. The Executive's power to recognise foreign governments is constitutionally rooted. Even so, Venezuela did not show that it is a public policy within Article V(2)(b). Venezuela did not attempt to show that enforcement would violate the forum's most basic notions of morality and justice. Hardy Exploration v. India is distinguished: that case concerned foreign sovereignty over natural resources and a remedy possibly beyond FSIA jurisdiction. Memorandum Opinion, pp. 9–13
4. Even if the recognition power were such a policy, enforcement would not violate it. Following the reasoning in Valores Mundiales v. Venezuela, enforcing an award does not 'recognise' any regime. The award binds the Republic as a State, whose obligations survive changes of government. The Interim Government, as the recognised government, must answer for those obligations even though the Maduro regime represented Venezuela in part of the arbitration. Memorandum Opinion, pp. 13–16
5. Zivotofsky and The Maret do not help Venezuela. Enforcement does not force the Executive to contradict its recognition decision. The Final Award is an act of a third-party tribunal, not a decree of an unrecognised government. Memorandum Opinion, pp. 16–18
6. Final judgment is entered for VUS for USD 137,832,778 as of 23 June 2025. The total covers compensation, pre- and post-award interest, legal costs and arbitration costs as set out in the Award ¶ 107. Post-judgment interest runs under 28 U.S.C. § 1961. Amended Order and Final Judgment, pp. 1–2

Procedural history

1. March 2013VUS begins PCA arbitration against Venezuela under the Barbados–Venezuela BIT and the UNCITRAL Rules.
2. 26 July 2016Interim award dismissing Venezuela's initial jurisdictional objection, after a July 2014 hearing.
3. 30 June 2020Venezuela's representation in the arbitration switches from Curtis, Mallet-Prevost (acting for the Interim Government) to a new firm acting for the Maduro regime.
4. 5 February 2021Partial Award on Jurisdiction and Liability: Venezuela is found liable for non-payment of dividends in 2008 and 2009.
5. February 2022Hearing on causation, damages and interest.
6. 4 November 2022Final Award: USD 58,870,898 plus interest, and costs.
7. 11 October 2023VUS completes service of its enforcement petition on the Interim Government.
8. 11 December 2023Venezuela files its Opposition. VUS replies on 5 January 2024.
9. 9 June 2025Memorandum Opinion granting the petition for recognition and enforcement.
10. 14 August 2025Amended Order and Final Judgment for USD 137,832,778 (as of 23 June 2025).

Tribunal, counsel and experts

Decided by

• Jia M. Cobb Judge, United States District Court for the District of Columbia

For the respondent

Curtis, Mallet-Prevost, Colt & Mosle LLP

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Keywords

• New York Convention
• public policy exception
• Article V(2)(b)
• recognition and enforcement
• Barbados–Venezuela BIT
• Guaidó
• Interim Government
• Maduro regime
• recognition of governments
• FSIA arbitration exception
• waiver
• Valores Mundiales
• Zivotofsky
• The Maret
• oil dividends
• PCA
• UNCITRAL Rules

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