Investment Awards vs Sovereign Immunity: Navigating the Enforcement Maze
By Cara North, Counsel, Ashurst
The intersection of foreign State immunity and the enforcement of international arbitral awards has been a hotly contested issues in recent years. First the question was whether a State has waived immunity from court processes concerning recognition and enforcement of arbitral awards by ratifying the 1965 Convention of Settlement of Investment Disputes (ICSID Convention) – to which the answer has been yes in Australia and the England and Wales (among other jurisdictions). More recently, the question has been whether a State’s ratification of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) constitutes an implicit waiver of sovereign immunity, to which the High Court of Australia most recently held no.
In CCDM Holdings, LLC v The Republic of India [2026] HCA 9, the High Court of Australia unanimously held that ratification of the New York Convention does not, of itself, waive foreign State immunity under the Foreign States Immunities Act 1985 (Cth). The decision aligns Australia with the current position in the United States, Canada, and England and Wales, reinforcing an emerging common law consensus in that regard.