Corporacion Mexicana De Mantenimiento Integral v. Pemex-Exploracion, No. 13-4022 (2d Cir. 2016)Annotate this Case
COMMISA contracted with PEP to build oil platforms in the Gulf of Mexico. When the parties accused each other of breach of contract, COMMISA initiated arbitration proceedings, prevailed, and obtained an award of approximately $300 million. The district court then affirmed the award and PEP appealed, while simultaneously attacking the arbitral award in the Mexican courts. The court held that the Southern District properly exercised its discretion in confirming the award because giving effect to the subsequent nullification of the award in Mexico would run counter to United States public policy and would (in the operative phrasing) be “repugnant to fundamental notions of what is decent and just” in this country; PEP’s personal jurisdiction and venue objections are without merit; and the Southern District did not exceed its authority by including in its judgment $106 million attributed to performance bonds that PEP collected. Accordingly, the court affirmed the judgment.