Reported / Citable
Background
NRCO Engineering, S.A., a Panamanian company, entered a 2016 shares purchase agreement with Linden Energy, LLC. NRCO agreed to provide up to $1.5 million for a 50% equity interest in Linden. Stephen Prentiss Payne guaranteed Linden’s obligations and executed a $1.5 million promissory note later assigned to NRCO.
Alleging defaults under both the agreement and note, NRCO commenced ICDR arbitration in April 2025. After hearings, the sole arbitrator issued a final award on May 1, 2026, holding Linden and Payne jointly and severally liable on the agreement-related claims and Payne liable on the note. NRCO then sought confirmation in federal court.
The Court’s Holding
The court granted NRCO’s petition and confirmed the award under the Federal Arbitration Act and the New York Convention. The dispute arose from international commercial relations because NRCO is a Panamanian company and the respondents are U.S. citizens.
NRCO supplied the required award and underlying agreement. The respondents did not timely move to vacate, modify, or correct the award within the three-month period in 9 U.S.C. § 12, and they did not otherwise establish a Convention ground to refuse enforcement. The court therefore confirmed the award and dismissed the action after granting all requested relief.
Key Takeaways
- Federal courts must enforce a Convention award absent a recognized ground for refusal.
- A party opposing an FAA award must timely serve any motion to vacate, modify, or correct it.
- The confirmed award includes $750,000 in principal, $557,000 in pre-award interest, $768,940.10 in attorneys’ fees, and $101,574.50 in arbitration-related fees and expenses, plus applicable interest.
Why It Matters
The order illustrates the narrow scope of review for international commercial arbitration awards. A respondent that does not timely challenge an award under the FAA, or prove a New York Convention defense, faces confirmation of the award as entered by the arbitrator.
The court ordered Linden and Payne jointly and severally to pay the confirmed amounts and post-judgment interest at the maximum rate allowed by law, which the order identified as 4.41%.