Republic of Poland Defeats Enforcement of Intra-EU Arbitral Award in U.S. Federal Court

We are pleased to share that our client, the Republic of Poland, has defeated the attempted enforcement of an intra-EU arbitral award before the U.S. District Court for the District of Columbia.  

In Mercuria Energy Group Limited v. Republic of Poland (Case No. 1:23-cv-3572), the District Court confirmed that an arbitral award set aside at the arbitral seat for incompatibility with EU law cannot be enforced in the United States.

In particular, the Court held that Article V(1)(e) of the New York Convention must be applied with deference to the decision of the court at the seat of arbitration. Only where annulment at the seat violates fundamental U.S. public policy may such a decision be disregarded. The fact that an award was annulled for incompatibility with EU law does not meet that threshold—“it is not this Court’s place to superintend EU courts as they interpret their own laws.”

It has been an honor and pleasure to represent the Republic of Poland in defending its interests here in Washington, D.C. and to work together with the Polish Prokuratoria. We hope this precedent will prove valuable to other EU Member States facing enforcement actions in U.S. courts.