Fifth Circuit: Error in refusing to recognize Philippine arbitration award

Originally published by Gene Roberts.

In Asignacion v. Rickmers Genoa Schiffahrtsgesellschaft MBH &
CIE, KG, the United States Court of Appeals for the Fifth Circuit examined
whether the district court correctly refused to enforce a Philippine arbitral
award pursuant to the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards and the prospective-waiver doctrine. Asignacion filed suit in
Louisiana state court to recover for personal injuries with Rickmers seeking an
exception to enforce the arbitration clause in the contract it had with
Asignacion. The state court granted the exception, stayed litigation, and
ordered arbitration in the Philippines.
At arbitration, the arbitrators found that Asignacion had the
lowest grade of compensable disability and awarded $1,870. Asignacion then
filed a motion in Louisiana state court asking Rickmers to show cause why the
Philippine arbitral award should not be set aside for violating United States
public policy. That suit was removed to federal court by Rickmers. The t …

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