Air Canada $25M Venezuela Award Sparks Fierce Legal Clash in D.C. Court

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Air Canada $25M Venezuela Award

U.S.-recognized members of Venezuela’s National Assembly are urging a Washington, D.C., federal judge to derail Air Canada’s lawsuit seeking to enforce a $25 million arbitral award, arguing the entire process was tainted by the participation of President Nicolás Maduro’s administration—an entity the United States does not recognize as Venezuela’s rightful government.

Lawmakers Claim Arbitration Was Built on Illegitimate Representation

In filings submitted Monday, the assembly members contend they were improperly locked out of the arbitration, despite repeatedly alerting the tribunal that Maduro’s government held no authority to represent the Republic of Venezuela or appoint counsel on its behalf.

They warned the court that allowing Air Canada’s award to stand would directly contradict U.S. foreign policy, which recognizes the 2015 National Assembly as Venezuela’s only legitimate governing authority.

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According to their brief, any ruling defended by Maduro’s administration is inherently invalid.
They argued that, “Had the 2015 National Assembly been permitted to defend the Republic, the outcome may have been different. The Maduro regime defended the arbitration knowing full well the numerous allegations of corruption and fraud embedded in the very system under dispute.”

The lawmakers added that Maduro’s representation amounted to yet another attempt to “loot assets of the Republic for personal gain.”