United States Court of Appeals, District of Columbia Circuit
Leidos, Inc., formerly known as Science Applications International Corporation, Appellee
Hellenic Republic, Appellant
December 6, 2017
from the United States District Court for the District of
Columbia (No. 1:13-cv-01070)
Goldfarb argued the cause and filed briefs for the appellant.
Max F. Maccoby entered an appearance.
William T. O'Brien argued the cause and filed the brief
for the appellee. Allen B. Green and Ivan W. Bilaniuk were
with him on brief.
Before: Henderson, Tatel and Kavanaugh, Circuit Judges.
LeCraft Henderson, Circuit Judge
case is a testament to the rise of the dollar-and the
precipitous decline of the euro-over the last four years. In
July 2013, Leidos, Inc. (Leidos) won an arbitration award
against the Hellenic Republic  resulting from security work it
performed in connection with the 2004 Summer Olympic Games
held in Athens, Greece. The award consisted of 39, 818, 298
in damages and $162, 500 in costs. Upon receiving the award,
Leidos promptly petitioned the United States District Court
for the District of Columbia to confirm and enforce it. After
approximately three years of intermittent stays, status
updates, motions and parallel litigation in Greek courts, the
district court confirmed the arbitration award and entered
judgment-in euros-in favor of Leidos.
to Federal Rule of Civil Procedure 59(e), Leidos then moved
to convert the award into U.S. dollars based on the exchange
rate ($1.3017 to 1) on July 2, 2013, the date of the original
arbitral award. The district court granted the motion.
Because the exchange rate had dropped 19.1 per cent from the
award date to the judgment date ($1.0533 to 1 on January 6,
2017), the total dollar value of the conversion increased the
value of the arbitral award by approximately $11.9 million.
The Hellenic Republic appealed. For the following reasons, we
conclude that the district court mistakenly granted
Leidos's motion and we reverse.
2003, the Hellenic Republic contracted with Leidos to provide
a public-safety infrastructure system for the 2004 Athens
Summer Olympics. The contract was written in Greek and
provided for payment in euros. After a series of disputes
regarding the Hellenic Republic's acceptance of the
infrastructure system, the parties agreed to a contract
modification (Modification No. 5) that included certain
dispute-resolution provisions, specifically:
Any claim or dispute arising from or related to the current
Contract or its interpretation is to be finally resolved by
Arbitration according to the Rules of Arbitration of the
International Chamber of Commerce (ICC) and shall be tried
under Greek Law. Arbitration shall take place in Athens,
Greece, by three Greek Arbitrators.
Appendix (JA) 101. Modification No. 5 further provided that
Greek was the language of the arbitration and that the result
of the arbitration was final and binding on both parties.
parties' contractual disagreements continued after
Modification No. 5 and, on June 16, 2009, Leidos filed a
Request for Arbitration. The arbitral tribunal heard the case
over eight days in May 2012. On July 2, 2013, the tribunal
issued its final award, which ordered the Hellenic Republic
to pay Leidos: (1) 39, 818, 298 in damages; (2) $162, 500 in
arbitration costs; and (3) simple interest of 6 per cent
beginning July 11, 2013, the date the award was served on the
Hellenic Republic. JA 19.
12, 2013, Leidos filed a Petition to Confirm Arbitration and
to Enter Judgment in the district court for the District of
Columbia. On September 5, 2013, the Hellenic
filed a parallel suit in the Athens Court of Appeals seeking
to set aside the arbitration award. The Hellenic Republic
subsequently answered Leidos's complaint in district
court, alleging six affirmative defenses under the Federal
Arbitration Act, 9 U.S.C. §§ 201 et seq.
On March 28, 2014, the district court granted the
parties' joint motion to stay proceedings pending the
resolution of the Greek litigation. Several months later,
Leidos submitted in district court two proposed orders
seeking to confirm the award: one on September 8, 2014 and
the other on ...