Carolina Power & Light Co. v. Uranex
Citation and Court
451 F. Supp. 1044 (N.D. Cal. 1977)
Facts
Carolina Power & Light contracted with Uranex, a French uranium supplier controlled by the French government, for uranium supply. A dispute arose and Carolina sought to attach Uranex’s U.S. commercial assets as pre-judgment security while pursuing international arbitration against Uranex in France.
Issue
Whether a U.S. court may issue pre-judgment attachment of a foreign state-owned entity’s commercial assets located in the United States to secure a potential arbitration award.
Holding
Pre-judgment attachment of a foreign state’s commercial assets in the United States is permissible as security for an anticipated arbitration award, particularly where the entity is engaged in commercial rather than governmental activity.
Rule / Doctrine
The FSIA’s attachment immunity provisions do not bar pre-judgment attachment of commercial assets when the foreign state or instrumentality has waived immunity or the assets are used for commercial activity in the United States. Courts have equitable power to secure potential international arbitration awards.
Significance
The case is an early application of FSIA attachment principles to pre-arbitration security and illustrates how U.S. courts may assist parties seeking to enforce anticipated international arbitral awards against state-owned entities holding commercial assets in the United States.