Spanish court dismisses appeal by ‘heirs’ of Sulu Sultanate

KUALA LUMPUR: A Spanish Constitutional Court has dismissed an appeal by individuals claiming to be heirs of the Sultan of Sulu on the appointment of the arbitrator involved in the US$14.92 billion arbitration award against Malaysia.

Minister in the Prime Minister’s Department (Law and Institutional reform) Datuk Seri Azalina Othman Said said the decision effectively ended the claimants’ judicial strategy in Spain.

“The government has just received official confirmation that the constitutional appeal filed by the claimants has been rejected and that, as a result, the annulment of Dr Gonzalo Stampa’s appointment (which was final and binding) has also been confirmed by the Spanish Constitutional Court.

“On June 29, 2021, the High Court of Justice of Madrid (HCJM) issued a decision which annulled the unlawful appointment of Stampa as an arbitrator.

“HJCM retroactively invalidated Stampa’s appointment and nullified all his actions as a purported arbitrator, including the alleged preliminary award he had rendered in Madrid.

“The claimants complied with HCJM’s decision and took steps to appoint a different arbitrator.

“As a consequence, they recognised that Stampa was not an arbitrator,” she said yesterday.

She said the Spanish Constitutional Court had rejected the appeal as the claimants had withdrawn their claim to appoint an arbitrator following the annulment decision.

Azalina said Malaysia had subsequently availed itself of all legal remedies to invalidate Stampa’s two purported awards.

“The Spanish court, therefore, reaffirms Malaysia’s position,” she said, adding that the recent decision vindicates the government’s policy to defend its interest, sovereign immunity and sovereignty at all times.

The District Court of Luxembourg on Jan 23 had set aside the attachment order requested by the claimants over the US$14.92 billion arbitration award they won against Malaysia on July 11 last year.

Azalina said the attachment was based on the purported final and preliminary award issued by Stampa on Feb 28, 2022, and May 25, 2020, respectively as well as on the ex parte exequatur order before the Luxembourg Court of Appeal.