Assembly Says This Case Differs From Prior Defeat
While the assembly previously raised similar objections in a separate enforcement fight—concerning a $618 million award issued to Spanish affiliates of Mexican food producer Gruma SAB de CV—the D.C. Circuit rejected those arguments in 2023.
This time, however, they say the jurisdictional ground is different.
Claim: Arbitrators Overstepped Their Authority
Their brief asserts that the tribunal had no authority to decide a “political and constitutional issue,” acknowledging this very limitation during proceedings.
Because the representation issue touched every part of the arbitration, they argue it violates the New York Convention’s limits on arbitral authority.
They maintain that the award cannot be salvaged, writing: “The breach cannot be cured through separation of the decision on legal representation, as the issue permeates every aspect of the case.”
Air Canada’s Long Path to a $25M Award
Air Canada launched its Toronto–Caracas route in July 2004, flying three times weekly with a 120-seat Airbus A319, according to its 2024 enforcement petition.
Under Venezuelan law, the airline was required to apply to CADIVI—the government’s currency administration commission—to convert bolivars generated from ticket sales into U.S. dollars to repatriate back to Canada.
From 2004 to 2012, Air Canada filed 91 currency exchange requests totaling roughly $91 million, all of which were approved.
