Africard Co. Ltd. v. Republic of Niger

210 F. Supp. 3d 119, 2016 U.S. Dist. LEXIS 132128, 2016 WL 5396666
CourtDistrict Court, District of Columbia
DecidedSeptember 27, 2016
DocketCivil Action No. 2016-0196
StatusPublished
Cited by5 cases

This text of 210 F. Supp. 3d 119 (Africard Co. Ltd. v. Republic of Niger) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Africard Co. Ltd. v. Republic of Niger, 210 F. Supp. 3d 119, 2016 U.S. Dist. LEXIS 132128, 2016 WL 5396666 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION

Amy Berman Jackson, United States District Judge

Petitioner Africard Company, Ltd. (“Af-ricard”) has filed a petition to confirm an arbitration award against respondent, the Republic of Niger, pursuant to Section 207 of the Federal Arbitration Act, 9 U.S.C. § 207. Pet. to Confirm Foreign Arb. Award & to Enter J. [Dkt. # 1] (“Pet.”) ¶ 1. The petition arises from Niger’s 2011 *122 contract with Africard to produce biometric and electronic passports. Id. ¶ 12. According to the terms of the parties’ agreement, Africard was contracted to produce a minimum of one million biometric and electronic passports, but Africard alleges that on March 24, 2011, Niger unilaterally cancelled the agreement. Id. ¶¶ 13-14.

Africard ultimately referred the dispute to arbitration in Abidjan, C6te d’Ivoire. 1 Pet. ¶ 14. On June 9, 2014, the arbitral tribunal issued an Interim Procedural Award, concluding that “the unilateral termination by the State of Niger of the Agreement of October 13, 2011 for the production of biometric and electronic passports in the Republic of Niger [was] abusive and wrongful.” Interim Procedural Award, Ex. D to Decl. of Christopher D. Man [Dkt. # 1-5] (“Interim Award”) at 33. The tribunal ultimately awarded Africard 44,740,781 West African CFA Francs as compensation for costs incurred, 15,440,-533,316 West African CFA Francs as compensation for lost profits, 1,000,000,000 West African CFA Francs for reputational harm incurred, and 156,747,299 West African CFA Francs for the cost of the arbi-tral proceedings. Final Award, Ex. F to Man Decl. [Dkt. # 1-7] (“Final Award”) ¶ 64. However, as of February 4, 2016, Niger had not paid any amount of the Final Award. Pet. ¶ 22.

Africard filed its petition to confirm the arbitration award on February 4, 2016. Pet. After Niger was served, and failed to timely answer, the Clerk of Court entered a default against it. Clerk’s Entry of Default [Dkt. # 13]. On May 13, 2016, Afri-card filed a motion for default judgment. Mot. for Default J. as to Repub. of Niger & Confirmation of Arb. Award [Dkt. # 14] (“Mot.”); Mem. of Law in Supp. of Mot. [Dkt. # 14] (“Mem.”). Though Africard served Niger with a copy of the motion, Niger did not respond. Because the record indicated that counsel for Africard had been contacted by an attorney who conveyed a request on behalf of Niger but also indicated that he had not been retained to defend this action, see Decl. of Mark D. Beckett [Dkt. # 14-21], on July 7, 2016, the Court entered an order asking petitioner to update the Court on whether it had any further contact with that lawyer. Min. Order (July 7, 2016). Petitioner responded, noting that it had received no further communications from Niger’s attorneys on this matter, and it informed the Court that Niger’s application to set aside the arbitration award had been denied. Status Report (July 19, 2016) [Dkt. # 22].

STANDARD OF REVIEW

Under the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. § 1602 et seq., a court shall not enter a default judgment against a foreign state “unless the claimant establishes his claim or right to relief by evidence satisfactory to the court.” 28 U.S.C. § 1608(e). This standard is identical to the standard for entry of default judgments against the United States under Federal Rule of Civil Procedure 55(d). Hill v. Repub. of Iraq, 328 F.3d 680, 683 (D.C.Cir.2003). As a result, the court cannot treat the allegations asserted in the petition as true, and must “inquire further before entering judgment against parties in default.” Rimkus v. Islamic Repub. of Iran, 750 F.Supp.2d 163, 171 (D.D.C.2010). Upon evaluating petitioner’s claim, though, the court “may accept the plaintiffs uncontro-verted factual allegations if they are supported by documentary and affidavit evi *123 dence.” Lanny J. Davis & Assocs. LLC v. Repub. of Eq. Guinea, 962 F.Supp.2d 152, 161 (D.D.C.2013).

ANALYSIS

1. The Court has subject matter jurisdiction over this dispute.

Before the Court may consider whether Africard is entitled to a default judgment in this matter, it must assess whether it has subject matter jurisdiction over this dispute. Federal courts are courts of limited jurisdiction and the law presumes that “a cause lies outside this limited jurisdiction.” Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994); see also Gen. Motors Corp. v. EPA, 363 F.3d 442, 448 (D.C.Cir.2004) (“As a court of limited jurisdiction, we begin, and end, with an examination of our jurisdiction.”).

A. The Court can exercise jurisdiction under the Federal Arbitration Act.

The Federal Arbitration Act (“FAA”) codifies an international convention known as the New York Convention into U.S. law. 9 U.S.C. § 201 et seq. Section 202 of the FAA specifies that: “[a]n arbitration agreement or arbitral award arising out of a legal relationship, whether contractual or not, which is considered as commercial ... falls under the [New York] Convention.” 9 U.S.C. § 202. The “district courts of the United States ... shall have original jurisdiction over [an action or proceeding falling under the Convention], regardless of the amount in controversy.” 9 U.S.C. § 203.

As the Second Circuit has explained, a court will have subject matter jurisdiction under the FAA when: “(1) there is a written agreement; (2) the writing provides for arbitration in the territory of a signatory of the convention; (3) the subject matter is commercial; and (4) the subject matter is not entirely domestic in scope.” U.S. Titan, Inc. v. Guangzhou Zhen Hua Shipping Co., 241 F.3d 135, 146 (2d Cir.2001).

Africard has identified a written agreement—the “Agreement for the Production of Biometric and Electronic Passports (E-Passports) in the Republic of Niger”—that governed the parties’ conduct in this case. Ex. 3 to Mot. [Dkt. # 14-4] (“Agreement”). 2

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210 F. Supp. 3d 119, 2016 U.S. Dist. LEXIS 132128, 2016 WL 5396666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/africard-co-ltd-v-republic-of-niger-dcd-2016.