Peru Found in Default in US Over $91 Million Arbitration (1)

Peru has been found in default over a $91 million international arbitration award it hasn’t paid to an airport contractor for over a year, a US federal judge ruled last week.

The South American nation did not present lawyers to defend itself in US court. “Peru never made an appearance nor filed an answer,” Judge Richard Leon wrote Dec. 22. Leon confirmed that the arbitration award, rendered by the World Bank’s International Centre for Settlement of Investment Disputes, was valid.

The setback is the latest in a series of arbitration and US court losses for Peruvian entities in recent years ...