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August 3, 2016

Second Circuit Affirms Judgment of Over $465 Million in Favor of King & Spalding Energy Client

NEW YORK, Aug. 3, 2016 — The Second Circuit Court of Appeals has affirmed a judgment of over $465 million in favor of King & Spalding client Corporación Mexicana de Mantenimiento Integral, S. De R.L. De C.V. (COMMISA), a subsidiary of KBR, Inc. The judgment resulted from the Southern District of New York’s confirmation under the Panama Convention of an ICC arbitration award in favor of COMMISA. The arbitration, which occurred in Mexico, arose from a contract dispute between COMMISA and Pemex-Exploración y Producción (PEP), Mexico’s state-owned oil exploration and production company, in connection with the engineering, design and construction of off-shore oil platforms.

On Tuesday, the Second Circuit held that the District Court was correct in confirming the ICC arbitration award and in refusing to give deference to a Mexican court decision annulling the award because the Mexican court decision offended basic standards of justice in the United States. The Second Circuit also held that PEP’s venue and jurisdiction objections were without merit. This is the first time an appellate court in the United States has upheld the confirmation of an arbitral award that had been annulled by a court in the country where the arbitration was held.

The King & Spalding team consisted of Richard Marooney, Charles Correll, Jeff Bucholtz, Guillermo Aguilar-Alvarez and James Berger.

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