National Oil Corporation v. Libyan Sun Oil Company

Abstract

Recognition — Governments — Effect of recognition — Effects in law of recognizing State — Right of access to municipal courts — Power of municipal courts to withhold access — Subsequent deterioration in diplomatic relations — Whether constituting grounds for withholding of access — Government of Libya — Whether permitted to enforce arbitral award in United States municipal courts — Significance of needs of Executive in conduct of foreign relations

Arbitration — Enforcement of award — Award rendered abroad — Action for enforcement in municipal courts — New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958, Article V — Conditions for refusal of enforcement — Burden of proof — Post-award interest — Whether enforceable — Application of equitable principles

Claims — State control over claims — United States International Emergency Economic Powers Act — Regulations issued by President limiting Libyan Government’s access to municipal courts — Whether President having power to bar Libyan State corporation from enforcing arbitral award in United States courts

Economics, trade and finance — Economic sanctions — United States International Emergency Economic Powers Act — Regulations applying economic sanctions against Libya — Regulations limiting Libyan Government’s access to municipal courts

Relationship of international law and municipal law — Conduct of foreign relations — Recognition of foreign Governments — Conclusiveness of recognition by the Executive — Political question doctrine — The law of the United States