Second Circuit Rejects Ex Parte Enforcement of ICSID Awards Against Foreign States
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- The United States Court of Appeals for the Second Circuit recently held that award-creditors must provide notice to foreign states in order to enforce ICSID awards.
- The decision does not detract from the general pro-international arbitration stance of U.S. courts, as federal courts are still required to treat ICSID awards as final and binding judgments.
- However, the decision creates procedural hurdles and potential delay in enforcing ICSID awards against foreign states and state instrumentalities.