By Bryan Dayton and Samuel Song, Associates at Freshfields Bruckhaus Deringer, Dubai
Introduction
Many construction contracts require the contractor to procure a performance bond to give the employer additional recourse should the contractor be delayed in performing, or fail to fully perform, its contractual obligations.
Continue reading Holding Hostage? – Withholding the Release of Performance Bonds in Construction Projects
By R. David Gallo, Law Clerk at the U.S. Court of International Trade
On January 18, 2017, the Second Circuit issued an opinion in the case of CBF Indústria de Gusa S/A et al. v. AMCI Holdings, Inc., 846 F.3d 35 (2d Cir. 2017).1 In Gusa, a party sought to enforce a foreign arbitral award against an entity that was not a signatory to the underlying arbitration agreement. Gusa is the latest in a line of Second Circuit cases to tackle this difficult issue. Gusa is also the latest case to invoke New York Convention (“Convention”) Article V(2)(a) and apply U.S. law – the law of the enforcing jurisdiction – to the question of whether a foreign arbitral award can be enforced against a non-signatory. The below discussion explores some of the reasons why this approach is untenable.
