Amit P. Mehta, United States District Judge.
Petitioner Viorel Micula has asked this court to confirm an arbitration award entered in his favor against the Government of Romania under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. Confirming, or recognizing, that arbitration award would render it an enforceable judgment of this court. Micula contends that the court should confirm the award ex parte -that is, without serving the Government of Romania-under 22 U.S.C. § 1650a, which provides: "The pecuniary obligations imposed by such an award shall be enforced and shall be given the same full faith and credit as if the award were a final judgment of a court of general jurisdiction of one of the several States." The question before the court is whether a statute that empowers federal courts to "enforce" an international arbitration award as if it were a final state court judgment permits a federal court, as a precursor to enforcement, to recognize or confirm such an arbitration award on an ex parte basis.
The court concludes that section 1650a does not permit use of such an ex parte procedure and therefore denies Micula's petition. If Micula wishes to have his arbitration award recognized and enforced in a United States federal court, he must file a plenary action, with proper service on the Government of Romania under the Foreign Sovereign Immunities Act of 1976.
The Convention on the Settlement of Investment Disputes between States and Nationals of Other States ("Convention" or "ICSID Convention") established the International Centre for Settlement of Investment Disputes ("ICSID"). Convention on the Settlement of Investment Disputes between States and Nationals of Other States art. 1, opened for signature Mar. 28, 1965, 17 U.S.T. 1270 [hereinafter ICSID Convention]. The Convention entered into effect on October 14, 1966, after it had been ratified by 20 countries, including the United States.
The Convention's purpose was to promote economic development and private international investment by providing a legal framework and procedural mechanism that could be used to resolve (primarily economic) disputes between private investors and governments. Id. at Preamble; SEN. EXEC. REP. NO. 2, at 1 (1966). "ICSID has jurisdiction over a dispute where two requirements are met. First, there must be an investment-related legal dispute between a state party to the Convention and a national of another state that is also a party to the treaty. Second, the parties to the dispute must consent to ICSID's jurisdiction." Mobile Cerro Negro, Ltd. v. Bolivarian Republic of Venezuela,
The Convention, however, did not confer upon ICSID the power to enforce its awards. It left that function to its contracting states. Article 54(1) of the Convention provides:
ICSID Convention art. 54(1).
The ICSID Convention was not self-executing. See Medellin v. Texas, 552 U.S. 491, 506, 128 S.Ct. 1346, 170 L.Ed.2d 190 (2008) (explaining when a treaty obligation requires legislation to become domestic law). It thus required its Contracting States to "take such legislative or other measures as may be necessary for making the provisions of this Convention effective in its territories." ICSID Convention art 69. Congress gave the ICSID Convention domestic effect in the United States by passing the Convention on the Settlement of Investment Disputes Act of 1966 ("Investment Disputes Act"). See Convention on the Settlement of Investment Disputes Act of 1966, Pub. Law 89-532, 80 Stat. 334 (1966) (codified at 22 U.S.C. §§ 1650 and 1650a). Section 3 of the Investment Disputes Act, codified at 22 U.S.C. § 1650a, addresses the enforcement of ICSID arbitration awards in the United States. It provides in full:
22 U.S.C. § 1650a.
Petitioner Viorel Micula, along with four co-petitioners
Five months later, on April 11, 2014, Micula filed a petition with this court under 22 U.S.C. § 1650a seeking confirmation of the Award on an ex parte basis ("Petition").
Shortly before Petitioner filed in this court, Romania moved before ICSID to annul the Award. Updated Pet'r's P. & A. at 5. ICSID's Secretary-General granted Romania an initial stay of enforcement. Id. After ICSID constituted an ad hoc Committee to consider the annulment request, Romania sought an extension of the stay pending the decision on annulment. Id. The ad hoc Committee granted the stay request on August 7, 2014, but made it contingent upon on Romania's filing of a written assurance that it would make unconditional, full payment of the Award if the request for annulment was denied. Id. When Romania did not file the written assurance, the ad hoc Committee revoked the stay as of September 7, 2014. Id. As a result, Petitioner Micula filed an updated petition, which again requested confirmation of the award on an ex parte basis, as well as entry of judgment of the award after its conversion into U.S. dollars. Id. at 9-10.
Although not served with the Petition, Romania informally appeared in this matter on March 17, 2015, when a Romanian government official sent an email to the court which detailed the ongoing ICSID annulment proceedings, noted Romania's efforts to secure a U.S. lawyer, and requested an extension of time in which to file a defense. Email from Darius-Bogdan Vâlcov, Minister of Public Finance, to the Honorable Judge P. Amit Mehta, United States District Court for the District of Columbia (Mar. 17, 2015), ECF. No 10-1 at 1. No lawyer, however, entered an appearance on Romania's behalf, and the court never received a formal response to either Micula's original or updated Petition.
Notwithstanding the lack of a formal response from Romania, this court has closely studied the question whether a federal district court has the authority to confirm an ICSID award on an ex parte basis under section 1650a. The court's scrutiny stems from the Supreme Court's admonition that "[s]ervice of process, under longstanding tradition in our system of justice, is fundamental to any procedural imposition on a named defendant," Murphy Bros., Inc. v. Michetti Pipe Stringing, Inc., 526 U.S. 344, 350, 119 S.Ct. 1322, 143 L.Ed.2d 448 (1999), as well as the rule that, absent proper service, "federal courts lack the power to assert personal jurisdiction over a defendant," Mann v. Castiel, 681 F.3d 368, 372 (D.C.Cir.2012). The court also found it unusual that, in light of international comity concerns, Congress would have granted federal courts the authority to confirm substantial arbitration awards against a foreign government without providing notice through formal service of process.
On April 16, 2015, during a telephonic conference in which Romania participated, the court delivered its opinion orally that section 1650a does not permit ex parte confirmation of an ICSID award and denied the Petition. Order, ECF No. 12; Draft Tr. at 12-22. This Memorandum Opinion sets forth the legal analysis supporting the court's decision.
To determine whether an ICSID award can be confirmed ex parte under section 1650a, the court begins, as it must, with the statute's text. See Desert Palace, Inc. v. Costa, 539 U.S. 90, 98, 123 S.Ct. 2148, 156 L.Ed.2d 84 (2003) (stating that the "starting point" for statutory analysis "is the statutory text"). Courts are to presume that the "words used" in a statute should be given their "ordinary meaning." Moskal v. United States, 498 U.S. 103, 108, 111 S.Ct. 461, 112 L.Ed.2d 449 (1990). When "the words of the statute are unambiguous, the judicial inquiry is complete." Desert Palace, 539 U.S. at 98, 123 S.Ct. 2148 (internal citations omitted). But if the statutory language is not clear, a court may use contextual analysis to determine the meaning of a statute. "Statutory construction
Section 1650a provides minimal guidance on how a federal court should convert an ICSID arbitration award into a federal court judgment. Courts are directed to "enforce" and "give[] the same full faith and credit" to an ICSID award "as if the award were a final judgment of a court of general jurisdiction of one of the several States." 22 U.S.C. § 1650a. But the statute does not address precisely how a court should go about "enforcing" and "giving full faith and credit" to an ICSID award-whether by complaint, motion, registration, or otherwise. See Mobile Cerro Negro, 2015 WL 631409, at *5 ("The brief text of the enabling statute thus does not specify the procedural mechanism by which an arbitral award is to be converted into a federal judgment."); see also id., at *5 n.9.
Federal district courts are split on how to interpret the limited text of section 1650a; no appellate court has addressed the issue. Trial courts in the Southern District of New York have routinely recognized ICSID awards on an ex parte basis. See, e.g., id.; Grenada v. Grynberg, No. 11 Misc. 45 (S.D.N.Y. Apr. 29, 2011); Siag v. Arab Republic of Egypt, No. M-82 (PKC), 2009 WL 1834562 (S.D.N.Y. June 19, 2009); Enron Corp. & Ponderosa Assets L.P. v. Argentine Republic, No. M-82 (S.D.N.Y. Nov. 20, 2007); Sempra Energy Int'l v. Argentine Republic, No. M-82 (S.D.N.Y. Nov. 14, 2007). The court in Mobile Cerro Negro provided the most comprehensive explanation for this approach. Remarking that "ICSID awards... can and are expected to be recognized and enforced in national courts," Mobile Cerro Negro, 87 F.Supp.3d at 578, 2015 WL 631409, at *4, the court observed that section 1650a was "silent as to the antecedent process by which the award is converted into an enforceable U.S. federal court judgment," id. 87 F.Supp.3d at 582, at *7. Relying on a variety of sources-previous ICSID enforcement cases; the Rules of Decision Act, 28 U.S.C. § 1652;
This court has considered the competing interpretations of section 1650a and concludes that the court's reading of the statute in Continental Casualty Co. is more consistent with its text and structure. The text of section 1650a expressly requires federal courts to treat ICSID awards in the same manner as "state court judgments." 22 U.S.C. § 1650a. Notably, the statute uses only the verb "enforce" as it relates to state court judgments; it does not use the verbs "confirm" or "recognize." That word choice is consistent with the procedural rule that "the proper treatment of a state court judgment by a federal court is not recognition, or registration, but enforcement." Cont'l Cas. Co., 893 F.Supp.2d at 753 ("In the federal courts, `a judgment of a state court may be sued on as a cause of action in a federal court having jurisdiction.'") (quoting 50 C.J.S. Judgments § 1364 (2012)).
Further, there is no federal statutory mechanism akin to the Uniform Enforcement of Foreign Judgments Act that enables a federal court to register, recognize or confirm a state court judgment. See Atkinson v. Kestell, 954 F.Supp. 14, 15 (D.D.C.1997) ("State court judgments cannot be registered in this court"; limiting the federal registration statute, 28 U.S.C. § 1963, to registration only of federal court judgments); Marbury Law Group, PLLC v. Carl, 729 F.Supp.2d 78, 83
This reading is consistent with other parts of section 1650a. For instance, in subsection (a) of the statute, Congress expressly stated that the "Federal Arbitration Act (9 U.S.C. § 1 et seq.) [FAA] shall not apply to enforcement of awards rendered pursuant to the convention." 22 U.S.C. § 1650a(a). Section 9 of the FAA, which Congress enacted before 22 U.S.C. § 1650a,
Requiring an ICSID awardee to file a plenary action also is consistent with subsection (b) of section 1650a. That subsection provides that federal courts "shall have exclusive jurisdiction over actions and proceedings under subsection (a) of this section, regardless of the amount in controversy." 22 U.S.C. § 1650a(b). The use of the words "actions" and "proceedings" strongly connotes a congressional intent to domesticate ICSID awards through a plenary action, rather than ex parte confirmation or recognition. The Federal Rules of Civil Procedure provide support for this reading of the statute. Rule 1, in effect when section 1650a was enacted, provides that "[t]hese rules govern the procedure in all civil actions and proceedings in the United States district courts, except as stated in Rule 81." FED. R. CIV. P. 1 (emphasis added). Rule 2 states that "[t]here is one form of action-the civil action." FED. R. CIV. P. 2. And, under Rules 3 and 4, "civil actions are required to commence by the filing of a complaint, followed by the issuance and service of a summons." SEC v. Sec. Investor Prot. Corp., 842 F.Supp.2d 321, 325 (D.D.C. 2012). "Congress can expressly provide by statute `to allow proceedings more summary than the full court trial at common law.'" Id. (quoting N.H. Fire Ins. Co. v. Scanlon, 362 U.S. 404, 407, 80 S.Ct. 843, 4 L.Ed.2d 826 (1960)). However, by expressly using the words "actions" and "proceedings" in section 1650a, Congress chose not to allow a summary, ex parte process to domesticate an ICSID arbitration award. Compare id. at 326 (finding that Congress intended summary proceedings when it provided that the SEC "may apply" for an order of relief).
Although the court finds that the text and structure of section 1650a compel the
Finally, the court finds later-enacted legislation to be instructive and to further support the court's reading of section 1650a. See Ginsburg, Feldman & Bress v. Fed. Energy Admin., 591 F.2d 717, 745 (D.C.Cir.1978) ("[I]t is a well established principle that courts may look to subsequent legislation as an aid in the interpretation of prior legislation dealing with the same or similar subject matter."). In 1970, only four years after it enacted enabling legislation for the ICSID Convention, Congress passed an enabling statute for another international dispute resolution convention, the Convention on the Recognition and Enforcement of Foreign Arbitral Awards ("Foreign Arbitral Awards Convention").
The court's interpretation of section 1650a does not conflict with, or abrogate in any way, the United States' obligations under the ICSID Convention. See Owner-Operator Independent Drivers Ass'n, Inc. v. U.S. Dep't of Transp., 724 F.3d 230, 234 (D.C.Cir.2013) ("[C]ourts prefer to
For the foregoing reasons, the court concludes that Petitioner must file a plenary action, subject to the ordinary requirements of process under the Foreign Service Immunities Act, to convert its ICSID award against Romania into an enforceable domestic judgment. Therefore, Petitioner's ex parte Motion to Confirm the ICSID Award is denied without prejudice. A separate order accompanying this Memorandum Opinion was filed on April 16, 2015. Order, ECF No. 12.