Venezuela US SRL v. Bolivarian Republic of Venezuela

Holding: The court affirmed the district court's judgment granting the petition for recognition and enforcement of the foreign arbitral award.
Standard: Narrow construction of the public policy exception under the New York Convention.
Vote: Senior Circuit Judge Randolph filed the opinion for the court. Circuit Judge Walker filed a dissenting opinion.
Practical effect: The decision reinforces the enforceability of foreign arbitral awards in the United States even when the foreign state's internal political disputes involve competing claims to legitimacy, ensuring that arbitration proceedings are not stalled by executive recognition disputes.

The United States Court of Appeals for the District of Columbia Circuit affirmed the district court's order enforcing a foreign arbitral award against Venezuela, rejecting the argument that enforcement would violate U.S. public policy by infringing on the President's exclusive power to recognize foreign governments.

Background

Venezuela US SRL, a company based in Barbados, obtained a fifty-nine million dollar damages award against Venezuela in international arbitration. Venezuela objected to enforcement in U.S. courts, arguing that the arbitration tribunal’s allowance of counsel retained by the Maduro regime to continue representing Venezuela during the proceedings violated U.S. public policy by implicitly recognizing the Maduro regime, contrary to the U.S. Executive’s recognition of the Guaido interim government.

The court’s reasoning

The court held that recognizing and enforcing the award does not amount to a formal acknowledgment that the Maduro regime is the effective government of Venezuela. Citing prior precedent, the court found that enforcement of the award expresses no opinion on the tribunal’s procedural decisions and does not undermine the President’s constitutional authority to recognize foreign governments. The court determined that the enforcement action does not force the Executive to contradict its prior statements regarding the interim government.

Recognition and enforcement of the damages award against Venezuela does not undermine the President’s authority.

Venezuela US SRL v. Bolivarian Republic of Venezuela, 25-7096 (D.C. Cir. 2026)

The dissent

What it means going forward

The decision reinforces the enforceability of foreign arbitral awards in the United States even when the foreign state’s internal political disputes involve competing claims to legitimacy, ensuring that arbitration proceedings are not stalled by executive recognition disputes.