Sigma Constructores, S.A. v. Republic of Guatemala

CourtDistrict Court, District of Columbia
DecidedFebruary 10, 2026
DocketCivil Action No. 2024-3055
StatusPublished

This text of Sigma Constructores, S.A. v. Republic of Guatemala (Sigma Constructores, S.A. v. Republic of Guatemala) 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
Sigma Constructores, S.A. v. Republic of Guatemala, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SIGMA CONSTRUCTORES, S.A.,

Plaintiff, Civil Action No. 24 - 3055 (SLS) v. Judge Sparkle L. Sooknanan

REPUBLIC OF GUATEMALA,

Defendant.

MEMORANDUM OPINION

This case involves two treaties ratified by the United States: the U.N. Convention on the

Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and the Inter-

American Convention on International Commercial Arbitration (Panama Convention). Together,

these treaties espouse an emphatic federal policy in favor of arbitral dispute resolution and

establish an international legal regime to ensure the efficient satisfaction of arbitral awards in

signatory countries. Congress has implemented both treaties in the Federal Arbitration Act (FAA).

Relying on this framework, Sigma Constructores, S.A. (Sigma), a construction and

engineering company, sued the Republic of Guatemala to enforce an arbitral award that resolved

a dispute between the Parties over the early termination of a highway construction contract. The

arbitral award was rendered in Guatemala, which is a party to both the New York and Panama

Conventions. In parallel proceedings, Guatemala is currently challenging that arbitral award in its

domestic courts.

Guatemala now seeks to dismiss this action for lack of subject matter jurisdiction or

personal jurisdiction under the Federal Sovereign Immunities Act (FSIA). In the alternative,

Guatemala asks this Court to dismiss this action under the forum non conveniens doctrine or to stay proceedings pending the ongoing judicial proceedings in Guatemala. Because none of these

arguments are availing, the Court denies Guatemala’s motion in its entirety. Sigma’s petition falls

squarely within the framework set out in the FAA and the New York and Panama Conventions.

Thus, the Court is required to exercise jurisdiction in this case. And the Court expects to move

expeditiously in resolving this dispute.

BACKGROUND

A. Statutory Background

1. Foreign Sovereign Immunities Act (FSIA)

“For much of the Nation’s history, the United States adhered to the ‘classical’ or ‘absolute’

theory of foreign sovereign immunity,” where “foreign states were generally granted complete

immunity from suit.” Republic of Hungary v. Simon, 604 U.S. 115, 119 (2025) (cleaned up). “This

posture reflected the venerable international law principle that states are independent sovereign

entities, and it encouraged others to respect the sovereignty of the United States in their courts.”

CC/Devas (Mauritius) Ltd. v. Antrix Corp., 605 U.S. 223, 228 (2025). But in the mid-20th Century,

“an emerging consensus . . . developed among nations” favoring a “restrictive theory” of sovereign

immunity, where “a foreign sovereign generally is immune from civil suit for sovereign acts but

not for its commercial acts.” Simon, 604 U.S. at 119. And in 1952, the State Department

“announced the United States’ decision to join the majority of other countries by adopting the

‘restrictive theory’ of sovereign immunity.” Permanent Mission of India to the United Nations v.

City of New York, 551 U.S. 193, 199 (2007).

“While this shift brought the United States into parity with the emerging international

consensus, it also provoked tension and confusion.” Antrix, 605 U.S. at 229. Courts “relied heavily

upon the advice of [the Executive] branch when deciding just when and how th[e] ‘restrictive’

sovereign immunity doctrine applied.” Bolivarian Republic of Venezuela v. Helmerich & Payne

2 Int’l Drilling Co., 581 U.S. 170, 180 (2017). But “[f]oreign nations often placed diplomatic

pressure on the State Department, and, on occasion, political considerations led to suggestions of

immunity in cases where immunity would not have been available. Furthermore, in instances

where the State Department simply failed to file any suggestion, courts were forced to determine

immunity based on standards that were neither clear nor uniformly applied.” Antrix, 605 U.S.

at 229 (cleaned up).

“Congress addressed the problem in 1976 by enacting the FSIA[.]” Id. That statute

“codif[ied] . . . international law at the time of [its] enactment” by statutorily adopting the

“restrictive view of sovereign immunity.” Permanent Mission, 551 U.S. at 199. “Instead of case-

by-case determinations that were governed by fuzzy legal standards and prone to manipulation,

the FSIA imposes a bright-line rule: foreign states and their instrumentalities are immune from

suit unless one of the Act’s enumerated exceptions applies.” Antrix, 605 U.S. at 229. “The Act for

the most part embodies basic principles of international law long followed both in the United States

and elsewhere,” Helmerich & Payne Int’l Drilling, 581 U.S. at 179, and serves as “the sole basis

for obtaining jurisdiction over a foreign state in our courts,” Antrix, 605 U.S. at 229 (citation

omitted).

2. New York Convention

The New York Convention is a multinational treaty that seeks “to encourage the

recognition and enforcement of commercial arbitration agreements in international contracts and

to unify the standards by which agreements to arbitrate are observed and arbitral awards are

enforced in the signatory countries.” Scherk v. Alberto-Culver Co., 417 U.S. 506, 520 n.15 (1974).

The New York Convention was designed to replace and succeed the preceding League of Nations

Geneva Convention on the Execution of Foreign Arbitral Awards, Sep. 26, 1927, 92 L.N.T.S. 301

3 (Geneva Convention). See Charles H. Sullivan, 1958 Report of the U.S. Delegation to the United

Nations Conference on International Commercial Arbitration, Office of the Legal Advisor U.S.

Department of State, reprinted in 19 Am. Rev. Int’l Arb. 91, 94 (2008) (1958 State Department

Delegation Report).

Specifically, the New York Convention sought to eliminate hurdles to the confirmation and

enforcement of arbitral awards in light of concerns that “[t]he continuing expansion of world trade

and the acceleration of the commercial process had . . . caused the business community to regard

the provisions of the [Geneva] Convention as inadequate.” United Nations Conference on

International Commercial Arbitration, Summary Record of the First Meeting 3–4, U.N. Doc.

E/CONF.26/SR.1 (Sep. 12, 1958). “The primary defect of the Geneva Convention was that it

required an award first to be recognized in the rendering state before it could be enforced abroad,

the so-called requirement of ‘double exequatur.’” Yusuf Ahmed Alghanim & Sons v. Toys “R” Us,

Inc., 126 F.3d 15, 22 (2d Cir. 1997) (citation omitted). So a party needed the “court of the country

of origin” to either render a judgment or otherwise “give leave” in order “to allow enforcement”

of the arbitral award elsewhere. Karaha Bodas Co. v. Perusahaan Pertambangan Minyak Dan

Gas Bumi Negara, 335 F.3d 357, 367 n.41 (5th Cir. 2003). “This requirement was an unnecessary

time-consuming hurdle, and greatly limited the Geneva Convention’s utility.” Yusuf Ahmed

Alghanim & Sons, 126 F.3d at 22 (cleaned up).

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