Ex Parte the Republic of Colombia

Background

A foreign government (the Republic of Colombia) faced an arbitration award that a private company sought to enforce. A lower federal court confirmed most of the award but rejected certain items and ordered interest on the remaining amount from January 26, 1898. This Court later disallowed some items and directed a new decree confirming the award up to $193,204.02. The government asked for a writ forcing the lower court to change that new decree, arguing interest should not have been allowed.

Reasoning

The central question was whether this Court’s prior decision barred the lower court from awarding interest. The opinion notes that neither the decree nor the discussion expressly addressed interest. By confirming part of the award, this Court effectively treated those amounts as payable in New York in gold on the award date, and it did not disapprove the lower court’s consequence of allowing interest. The opinion also points out that Colombia’s arbitration agreement allowed the commission to set payment terms, and earlier drafts had considered interest. When Colombia submitted to the courts it did so like any other litigant, so the Circuit Court could lawfully decree interest as in an ordinary case. The Court therefore denied the mandamus petition.

Real world impact

The ruling leaves the lower court’s decree intact so the confirmed award carries interest from January 26, 1898. The decision affects the company receiving the award and the Republic of Colombia by increasing the amount payable through interest. It also confirms that courts may impose interest when confirming arbitration awards if the confirmation carries that consequence.