Malaysia Wins Appeal Against Partial Award In $15 Billion Claim By Sultan’s Heirs In Paris Court

The Malaysian Government recently announced the decision of a Paris Court that upheld its objection of implementing a partial award in favor of the heirs of a former sultan who were awarded $15 billion through arbitration for a land deal from the colonial era.
This victory for Malaysia indicates that the final award will be nullified, putting an end to the descendants’ attempts to seize Malaysian assets, as stated by the government.
Law Minister Azalina Othman expressed Malaysia’s satisfaction with the court’s decision, describing it as a definitive and binding triumph in their ongoing pursuit of legal remedies. The minister further expressed confidence that this outcome would ultimately lead to a comprehensive defeat for the claimants and their financiers.
In response to the court’s ruling, the claimants have mentioned that they will explore their options before taking the matter to the French Supreme Court for further consideration.
Last year, the Filipino heirs of the last Sultan of Sulu were awarded $14.9 billion by a French arbitration court in a prolonged dispute over the aforementioned land deal. Initially, a partial award was issued in May 2020. However, the Paris Court of Appeal determined that the case arbitrator had erred in upholding jurisdiction, according to Malaysia’s announcement on Tuesday.
Malaysia, which had abstained from participating in the arbitration proceedings, has consistently maintained that the entire process is unlawful and has vowed to employ all legal measures necessary to prevent any seizure. While Malaysia obtained a stay on the award within France, the ruling remains enforceable internationally under a United Nations treaty on arbitration.
The origins of the dispute can be traced back to an agreement signed in 1878 between European colonists and the Sultan of Sulu, involving the utilization of his territory encompassing islands in the southern Philippines and parts of present-day Malaysia on Borneo island. Following the agreement, Independent Malaysia made annual token payments to the sultan’s heirs as a means of honoring the arrangement. However, these payments were halted in 2013 after proponents of the former sultanate launched a violent incursion to reclaim land from Malaysia. The heirs maintain that they were not involved in the incursion and sought arbitration due to the suspension of payments.
In the past few months, Malaysia has intensified its efforts to safeguard itself against the arbitration award, including filing police complaints against one of the claimants’ legal representatives. Consequently, the Filipino claimants and their lawyers have requested protection from their respective foreign ministries, citing concerns of potential further actions against them.