Panama Canal Work Arbitration Award Upheld, Bias Argument Fails

A consortium of European companies involved in designing and constructing locks for the Panama Canal failed to convince a federal appeals court to vacate an arbitration award in favor of the canal authority.

The US Court of Appeals for the Eleventh Circuit on Aug. 18 rejected the consortium’s argument that the arbitrators’ connections between themselves and the parties in the dispute presented exceptional circumstances warranting vacatur.

The consortium, Grupo Unidos por el Canal S.A., was ordered to pay more than $260 million after it was taken to arbitration over delayed construction work on the canal. Grupo Unidos has been involved ...