Baker Hughes Saudi Arabia Co. Ltd. v. Dynamic Industries, Inc., Dynamic Industries International, L.L.C., and Dynamic Industries International Holdings, Inc.

CourtDistrict Court, E.D. Louisiana
DecidedJanuary 30, 2026
Docket2:23-cv-01396
StatusUnknown

This text of Baker Hughes Saudi Arabia Co. Ltd. v. Dynamic Industries, Inc., Dynamic Industries International, L.L.C., and Dynamic Industries International Holdings, Inc. (Baker Hughes Saudi Arabia Co. Ltd. v. Dynamic Industries, Inc., Dynamic Industries International, L.L.C., and Dynamic Industries International Holdings, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker Hughes Saudi Arabia Co. Ltd. v. Dynamic Industries, Inc., Dynamic Industries International, L.L.C., and Dynamic Industries International Holdings, Inc., (E.D. La. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

BAKER HUGHES SAUDI ARABIA CO. CIVIL ACTION LTD.

VERSUS NO: 23-1396

DYNAMIC INDUSTRIES, INC., SECTION: T (4) DYNAMIC INDUSTRIES INTERNATIONAL, L.L.C., and DYNAMIC INDUSTRIES INTERNATIONAL HOLDINGS, INC.

ORDER AND REASONS On January 27, 2025, the United States Court of Appeals for the Fifth Circuit reversed the district court’s November 2, 2023, Order (R. Doc. 19) denying Defendants’ motion to compel arbitration and dismiss or stay this action (R. Doc. 8) and remanded this action for further proceedings consistent with its opinion. R. Doc. 27-1 (Baker Hughes Saudi Arabia Co. Ltd. v. Dynamic Indus., Inc., 126 F.4th 1073 (5th Cir. 2025)). Specifically, this Court was directed to determine whether the DIFC-LCIA Arbitration Rules (“DIFC-LCIA Rules”) referenced in the parties’ Subcontract can be applied by an available arbitral forum consistent with the parties’ objective intent. R. Doc. 27-1, p. 29. The Fifth Circuit also directed this Court to consider whether arbitration should otherwise be compelled in Saudi Arabia pursuant to Schedule A of the subcontract if no available forum can apply the DIFC-LCIA Rules. Id. Plaintiff, Baker Hughes Saudi Arabia Co. Ltd. (“Baker Hughes”) briefed the issues raised by the Fifth Circuit, R. Doc. 30, as did Defendants, Dynamic Industries, Inc. (“DI”), Dynamic Industries International, L.L.C. (“DII”), and Dynamic Industries International Holdings, Inc. (“DIIH”) (collectively, “Defendants”), R. Doc. 39. Plaintiff filed a reply to address Defendants’ arguments. R. Doc. 40. For the following reasons, the Court finds that the arbitration may be compelled before the Dubai International Arbitration Centre (“DIAC”) in a manner consistent with both the parties’

dominant intent and the Fifth Circuit’s instructions on remand. Accordingly, Defendants’ Motion to Dismiss for Forum Non Conveniens or to Compel Arbitration and Stay Pending Arbitration (R. Doc. 8) is GRANTED IN PART and DENIED IN PART, and this action is STAYED and ADMINISTRATIVELY CLOSED pending arbitration. Additionally, Defendants’ recently filed Motion for Issuance of Immediate Stay and/or Immediate Restraining Order/Preliminary Injunction Against Plaintiff (R. Doc. 44) is DENIED AS MOOT. The parties are directed to proceed to arbitration in accordance with the terms set forth below. I. BACKGROUND This case arises from a contractual dispute between Plaintiff and Defendants.1 On December 20, 2017, Plaintiff contracted with Defendants to supply materials, products, and

services for an oil and gas project being performed by Defendants in Saudi Arabia (the “Subcontract”). R. Doc. 1-1, p. 3. Plaintiff alleges that it fully performed its obligations under the Subcontract, but that Defendants have failed to pay $1.355 million owed to Plaintiff for those services. Id. at p. 4. The Subcontract contains two provisions governing a dispute resolution process. R. Doc. 27-1, p. 4. First, Schedule A allows Defendants to elect to arbitrate any dispute arising out of the subcontract in Saudi Arabia. R. Doc. 8-2, pp. 73-76; see also R. Doc. 27-1, p. 5.

1 The challenged contract is facially between Plaintiff and Dynamic Industries Saudi Arabia, Ltd. (“DISA”). See R. Doc. 8-2, pp.1-4 (“Subcontract for Procurement and Construction” between DISA and Plaintiff). However, Plaintiff asserts that DISA “is merely a shell company and alter ego of” the Defendants named in this suit. R. Doc. 1-1 at 3. Because Defendants do not directly challenge this assertion, for the purpose of this Order, the Court will assume that Defendants directly entered into the Subcontract with Plaintiff and use the term “Defendants” to refer to both DISA and the defendants named in this suit. Second, Schedule E provides an alternative dispute-resolution provision, calling first for mediation and then, if mediation is unsuccessful, for arbitration. R. Doc. 8-2; see also R. Doc. 27-1, pp. 5-6. Schedule E specifies that arbitration shall occur in accordance with the Arbitration Rules of the Dubai International Financial Center London Court of International Arbitration (“DIFC-LCIA”), with the seat of arbitration designated as the Dubai International Financial Centre (“DIFC”).2 R.

Doc. 8-2, p. 94; see also R. Doc. 27-1, pp. 5-6. The DIFC-LCIA referenced in the Subcontract was a joint venture of the Dubai International Financial Centre (“DIFC”) and the London Court of International Arbitration (“LCIA”) established in 2008. R. Doc. 27-1, pp. 2-4. The DIFC-LCIA adopted arbitral rules that were based upon the LCIA’s existing rules and established that the LCIA would oversee certain aspects of the proceedings, such as the functions of the registrar, and could “decide to administer arbitration directly, in whole or in part, if it deems this appropriate under the circumstances.” Id. at p. 4. However, in September 2021, the Government of Dubai issued Decree No. 34 (“Decree 34”), which effectively closed the DIFC-LCIA institution referenced in the Subcontract. Id. at p.

2 Specifically, Schedule E of the Subcontract states, in relevant part: Provided that CONTRACTOR [i.e., DISA/Defendants] has not elected to pursue resolution of a SUBCONTRACTOR [i.e., Plaintiff, Baker Hughes] Claim or Other Claim under Paragraph 20.4 of this Subcontract by arbitration in Saudia Arabia in accordance with Attachment I to this Schedule “E”, any Other Claim arising out of or relating to this Subcontract or any other agreements arising out of or relating to it, including but not limited to any question regarding its existence, formation, performance, interpretation, validity or termination, and which is not settled by agreement or otherwise fully and finally resolved between the Parties pursuant to Paragraph 20 of Schedule “A” hereof, shall be referred to mediation in accordance with the Mediation Rules of the Dubai International Financial Center (“DIFC”) London Court of International Arbitration (“LCIA”) (the “Mediation Rules”) from time to time in force, which Rules are deemed to be incorporated by reference herein. Subject to any scheduling restrictions of the DIFC LCIA which make it impossible to conduct mediation proceedings within such time period, if the dispute is not settled by mediation within thirty (30) days of the commencement of the mediation, or such further period as the Parties shall agree in writing, the dispute shall be referred by either Party to and finally resolved by arbitration under the Arbitration Rules of the DIFC LCIA (the “Rules”) from time to time in force, which Rules are deemed to be incorporated by reference herein (save for Article 5.6 which is hereby expressly excluded). The Seat, or legal place, of the arbitration shall be the DIFC, Dubai, United Arab Emirates. The arbitration shall be conducted in the English language. R. Doc. 8-2, p. 94 (emphasis added). 6 & n.3. Decree 34 also established the Dubai International Arbitration Centre (“DIAC”). Id. at p. 6. Shortly thereafter, the DIAC and the LCIA executed an agreement in which the LCIA would administer all DIFC-LCIA cases commenced on or before March 20, 2022, while all actions referring to the DIFC-LCIA Rules commenced on or after March 21, 2022, shall be administered

by the DIAC, which adopted rules similar to those of the DIFC-LCIA. Id. at p. 7. On March 7, 2023, Plaintiff filed suit in Louisiana state court, asserting breach of contract claims against Defendants. R. Doc. 1-1. Defendants removed the action to this Court on April 26, 2023, R. Doc. 1, and subsequently moved to dismiss the action or, in the alternative, to compel arbitration pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards and its implementing legislation. R. Doc. 8.

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Related

Lewis v. UBS Financial Services Inc.
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Baker Hughes v. Dynamic Industries
126 F.4th 1073 (Fifth Circuit, 2025)

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Bluebook (online)
Baker Hughes Saudi Arabia Co. Ltd. v. Dynamic Industries, Inc., Dynamic Industries International, L.L.C., and Dynamic Industries International Holdings, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-hughes-saudi-arabia-co-ltd-v-dynamic-industries-inc-dynamic-laed-2026.