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BG Group PLC v. Republic of Argentina, 12-138

The decision by the Court of Appeals for the District of Columbia Circuit that arbitrators lacked authority to decide a dispute between the parties arising under an investment treaty between the United Kingdom and Argentina, which contained a local litigation requirement, is reversed and remanded, where: 1) a court of the United States, in reviewing an arbitration award made under the treaty should interpret and apply "threshold" provisions concerning arbitration using the framework developed for interpreting similar provisions in ordinary contracts; 2) under that framework, the local litigation requirement is a matter for arbitrators primarily to interpret and apply; 3) courts should review their interpretation with deference; and 4) while Argentina is entitled to court review (under a properly deferential standard) of the arbitrators' decision to excuse plaintiff's noncompliance with the litigation requirement, that review shows that the arbitrators' determinations were lawful.

Appellate Information

  • Decided 03/05/2014
  • Published 03/05/2014

Judges

  • BREYER

Court

  • United States Supreme Court

Counsel