By Brian Okoth
A Washington court has ordered a Portuguese energy company to file a breach of contract lawsuit against Angolan government in the African nation’s courts.
Aenergy, which deals in electrical services, had moved to the Federal Court of the District of Columbia in Washington seeking compensation after the Angolan government terminated its contract in 2019.
Angola said it cancelled the contracts due to “breach of the principle of good faith and breach of trust” by Aenergy.
The state further said it had established that Aenergy subcontracted a third party to fulfill a contractual agreement without alerting or seeking its permission, contrary to the law.
The American court ruled on Tuesday that it lacks the jurisdiction to hear the matter, and has since directed Aenergy to file the petition in Angola.
‘Forum shopping’
The court said Aenergy was engaging in “forum shopping,” attempting to seek favourable outcomes by approaching US courts that have little or no connection to the case.
The firm, which signed 13 contracts with the Angolan state, had been awarded a tender to supply electric turbines in 2017.
Angola had agreed to pay the company $1.1 billion for eight TM2500 turbines and a variety of other goods.
Aenergy was also contracted to supply other services including construction, expansion, upgrading, operation and maintenance of electricity-generation plants.
'Angola is the right forum'
The firm alleges that Angola wrongfully cancelled its power plant contracts and seized its property in violation of state and international law.
Fearing an unfair ruling in Angolan territory, the company had first sought the intervention of a lower court in New York, which ruled that the petition be filed and determined in Angola.
The Southern District of New York Court, which received the petition in May 2020, ruled that the African state was an “adequate alternative forum” to resolve the matter.
Aggrieved by the decision, Aenergy moved to the Federal Court of the District of Columbia in Washington, which has since upheld the lower court’s decision.
Aenergy was claiming damages of up to $500 million from the Angolan state.
