ICSID in the US Courts: The Rocks of Sovereign Immunity?

Abstract The US courts have become a battleground for the complex interplay between sovereign immunity and investor-State arbitration. As investors increasingly turn to the US courts to enforce arbitral awards under the International Centre for Settlement of Investment Disputes (ICSID) Convention, the courts confront novel issues under the US Foreign Sovereign Immunities Act (FSIA). These issues include threshold procedural requirements, whether to stay enforcement pending an annulment decision and the extent to which FSIA exceptions apply to ICSID awards. This article analyzes these ICSID enforcement actions and considers how US courts and parties are navigating the rocks of sovereign immunity. These cases underscore the tension and evolving jurisprudence at the intersection of domestic and international law, with significant implications for investor-State arbitration and the enforcement of ICSID awards.