In 2009, Thai and Laotian companies secured a favorable arbitral award against the Government of the Lao People’s Democratic Republic. The arbitration tribunal determined that Laos had wrongfully terminated an agreement with Thai-Lao Lignite (TLL), a Thai mining company, and awarded $56 million in damages, plus $1 million in legal fees in favor of TLL and its Laotian partner, Hongsa Lignite (HL). However, Laos has yet to pay the amount due under the award. Almost four years after the award was rendered, the companies are still trying to force Laos to satisfy the award, which with interest to date amounts to more than $70 million. Their attempts to enforce the award have included proceedings in England, the United States, France and Singapore, in addition to annulment proceedings in Malaysia, the place where the award was rendered.

Elliot E. Polebaum

The latest setback in this enforcement saga came from the Paris Court of Appeal, which refused to enforce the award against Laos based on its finding that the arbitral tribunal had exceeded its powers. This decision is in line with the decision of the Malaysian court that set aside the Laos award, but contrary to the decision of courts in the United States, which have confirmed the same award. While the companies have appealed the award annulment in Malaysia, the Laos government continues to challenge enforcement of the award in the United States, where TLL and HL have been most successful thus far.

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