Washington, D.C. — A D.C. federal judge has ruled that a broadband corporation’s $168 million arbitration award enforcement suit against Peru-owned telecom service Pronatel will proceed in the U.S. District Court for the District of Columbia.
U.S. District Judge Rudolph Contreras declined Pronatel’s motion to dismiss the case, rejecting the company’s argument that it was not properly served under Peruvian law and affirming the court’s jurisdiction over the matter.
The lawsuit, filed by Lima-based Redes Andinas de Comunicaciones SRL, seeks to enforce two arbitral awards issued by an International Chamber of Commerce tribunal in August 2022. The tribunal found Pronatel breached a contract for broadband infrastructure installation in northern coastal Peru.
Judge Contreras noted that while Pronatel initially failed to respond to the suit, the court had properly entered a default judgment against Peru’s Programa Nacional de Telecomunicaciones. Although Pronatel subsequently appeared and moved to set aside the default, the judge ruled that the service of process was valid and the court retains both personal and subject-matter jurisdiction.
“The Peruvian Constitutional Court has held that service at an address different from the one indicated is valid as long as official notice was actually received,” Judge Contreras stated in his opinion. He confirmed that Pronatel was properly served at its legal defense office in October 2023, satisfying the requirements under Peruvian law.
Redes asserted that Pronatel’s claims to sovereign immunity and procedural defenses are without merit, reiterating that the telecom company is a state instrumentality under Peru’s Ministry of Transportation and Communications and therefore subject to U.S. court jurisdiction.
The underlying contract granted Redes the exclusive right to operate and maintain broadband services in the Peruvian regions of Cajamarca, Tumbes, and Piura for ten years, backed by $248 million in public financing. The dispute arose after project delays caused by weather and community opposition, leading Pronatel to terminate the agreement in 2019 and call on performance bonds, which Redes challenged as unlawful.
The case, Redes Andinas de Comunicaciones SRL v. Republic of Peru, et al., case number 1:22-cv-03631, remains active in the U.S. District Court for the District of Columbia. Redes is represented by Ashley Parrish of King & Spalding LLP. Pronatel is represented by Andrew B. Loewenstein and Nicholas M. Renzler of Foley Hoag LLP.
