Beijing Shougang Mining Investment Co., Ltd. v. Mongolia, No. 19-4191 (2d Cir. 2021)Annotate this Case
Petitioners appeal the district court's order denying their petition to set aside an arbitral award issued by an ad hoc arbitral tribunal constituted under a bilateral investment treaty between Mongolia and the People's Republic of China, and granting Mongolia's cross-petition to confirm the award. Petitioners also challenge the district court's rejection of their petition to compel arbitration on the merits.
The Second Circuit affirmed the district court's judgment, rejecting the appeal and holding that petitioners were not entitled to de novo review of the arbitrability of their investment claims. While the bilateral investment treaty in this case does not contain a clear statement empowering arbitrators to decide issues of arbitrability, the court held that the parties nonetheless clearly and unmistakably agreed to submit questions of arbitrability to the arbitral tribunal in the course of the dispute between them. Therefore, the court concluded that the district court properly declined to determine independently the arbitrability of petitioners' investment claims; in reaching their decision on arbitrability, the arbitrators did not exceed their powers; and the court agreed with the district court's decision to confirm the award.