The yearslong legal battle over a $486 million arbitral award involving Doraleh Container Terminal SA and the Republic of Djibouti has been resolved, with both parties agreeing to end litigation in a Washington, D.C., federal court.
U.S. District Judge Beryl A. Howell signed off on the stipulation of dismissal on Tuesday, finalizing the agreement just days after the parties informed the court they would not pursue arbitration over contentious representation issues.
Key Settlement Terms
As part of the settlement, Djibouti agreed not to oppose the use of discovery already obtained by DP World Djibouti FZCO, Doraleh Container Terminal’s parent company, in a separate enforcement case concerning a related $194.3 million arbitral award.
The dispute stemmed from a 2006 concession agreement between DP World and Djibouti’s Port de Djibouti SA to build and operate the Doraleh international container terminal, considered one of Africa’s most advanced ports. In 2019, Doraleh Container Terminal won the $486 million arbitral award after DP World was ousted from the lucrative port management deal.
Representation Dispute
The litigation took an unusual turn due to a 2018 governance crisis at Doraleh Container Terminal. Djibouti had appointed Chantal Tadoral as a provisional administrator to navigate the venture through the conflict.
