PIL.OT / DEVELOPMENT
PIL.OTv0.62.2
Nobumichi Teramura and Luke Nottage trace the Sulu Sultan's heirs' claim against Malaysia as successor to the British North Borneo Company under an 1878 concession agreement. Following Malaysia's suspension of concession payments in 2013, the dispute led to ad hoc arbitration in Spain in 2017, a preliminary award on jurisdiction and applicable law that was subsequently annulled, and attempts to move the seat to France.
The analysis follows the 2022 Final Award of around USD 15 billion, unsuccessful attempts to enforce it against Malaysian assets in the Netherlands and Luxembourg, and the heirs' unsuccessful arbitration commenced in 2024 under the 1993 Philippines–Spain bilateral investment treaty, alleging, among other things, denial of justice in Spanish courts. The authors connect this sequence to public scepticism about international arbitration's legitimacy, including costs and delays, beyond Malaysia.
Arbitral jurisdiction and applicable law for the Sulu heirs' claim against Malaysia under the 1878 concession agreement, enforcement of the resulting awards, and their investment treaty claim alleging denial of justice in Spanish courts.
The dispute connects arbitral jurisdiction and applicable law with enforcement across several jurisdictions and a subsequent investment treaty claim alleging denial of justice. Teramura and Nottage also relate it to public scepticism about arbitration's legitimacy, costs and delays.
Arbitration International · 2026
DOI 10.1093/arbint/aiag005