India Wins Round at DC Circuit in Dispute With Deutsche Telekom
The U.S. Court of Appeals for the D.C. Circuit held that a lower court must at least hear India’s arguments in a case against Deutsche Telekom over satellite spectrum, rather than dismiss it outright. DT won a nearly $100 million award against India in Switzerland after an arbitral panel rejected India’s contention that the governing arbitration clause didn't extend to the dispute between the companies. DT petitioned the district court to confirm the award, which it did, denying India's request for dismissal.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
The long-standing dispute started in 2005. DT had invested in a company that had an agreement to lease spectrum from Antrix, a satellite company owned by the Indian government, but the government decided to use the spectrum for other purposes. “Deutsche Telekom argued that India, in taking these actions, violated its obligation under [a bilateral investment treaty] to fairly treat investments by German investors,” the court found. Pursuant to the treaty, DT “initiated arbitration against India in Switzerland.”
The lower court “rejected India’s arguments for dismissal based on sovereign immunity and forum non conveniens,” said a decision Friday by Judge Gregory Katsas. The lower court held that “India’s substantive defenses to confirmation were either foreclosed by the arbitral agreement or forfeited,” he wrote. “We hold that the court properly denied the motion to dismiss but improperly declined to consider India’s substantive defenses.” The D.C. Circuit vacated the district court’s judgment and remanded the case for further proceedings.