By Attorney Francis M Boyer Last fact-checked: May 2026
By Attorney Francis M. BoyerSummary: When a foreign government claims sovereign immunity to avoid paying an arbitration award, your international arbitration lawyer needs specific federal law exceptions to collect. The Foreign Sovereign Immunities Act creates openings through its arbitration agreement, commercial activity, and waiver exceptions. Florida’s federal courts regularly handle these enforcement actions, and the right strategy determines whether you collect what you are owed.
Key Takeaways:
- Sovereign immunity has limits: Foreign governments that agreed to arbitrate generally cannot claim immunity when you seek to enforce the award in U.S. courts.
- The FSIA is your primary tool: The Foreign Sovereign Immunities Act lists exceptions that allow enforcement actions against foreign states, including one written for arbitration agreements.
- Recent case law cuts both ways: Courts have confirmed jurisdiction over sovereign states in some cases while upholding immunity in others, depending on how the claim is structured.
- Florida is a key enforcement venue: Working with an experienced international arbitration lawyer in Miami or Jacksonville matters because federal courts there handle a high volume of these disputes, making Florida a natural filing location.
You won your international arbitration. The tribunal issued the award. And now the foreign government on the other side says it won’t pay because it’s a sovereign nation that can’t be sued.
That position puts billions of dollars at risk every year. The ICC’s 2024 Dispute Resolution Statistics show the total amount in dispute nearly doubled from $53 billion in 2023 to $102 billion in 2024. Latin American parties grew from 14.5% to 21.4% of all participants.
If you need an international arbitration lawyer in Florida, those numbers land close to home. This state sits at the center of cross-border disputes between U.S. and Latin American entities.
Sovereign immunity doesn’t have to be the end of your case. Federal law limits when and how a foreign government can use that defense. If you know where the openings are, you can still collect.
What Sovereign Immunity Means for Your International Arbitration Award
Sovereign immunity is the legal principle that a foreign government cannot be hauled into another country’s courts without its consent. In most settings, that protection is broad. You generally cannot sue a foreign state in a U.S. courthouse just because you have a grievance.
International arbitration changes the math. When a foreign government signs an arbitration agreement, it consents to resolve disputes outside its own courts. That consent creates a crack in the immunity shield.
The government agreed to arbitrate your dispute, and the question is whether it can now refuse to honor the result. At Boyer Law Firm, we see this tension play out regularly for clients across Florida. The answer depends on a specific federal statute.
The Foreign Sovereign Immunities Act and How It Protects You
The Foreign Sovereign Immunities Act, codified at 28 U.S.C. § 1602, controls when foreign governments can be sued in U.S. courts. It is the only legal path for bringing a foreign state into American jurisdiction. Without an FSIA exception, your case won’t move forward, no matter how strong the award is.
The FSIA doesn’t just grant blanket immunity, though. It lists specific situations where immunity falls away. Several of those situations apply directly to international arbitration enforcement. If your case fits within one of these exceptions, the foreign government loses its shield, and you can petition a U.S. court to recognize your award.
FSIA Exceptions That Apply to International Arbitration Awards
Three exceptions under the FSIA arise most often in enforcement actions against foreign states. Each one opens a different door depending on how your arbitration agreement was structured.
The Arbitration Agreement Exception
The arbitration agreement exception is the most direct path. Under 28 U.S.C. § 1605(a)(6), a foreign state loses immunity when the lawsuit seeks to confirm an arbitral award. The arbitration must have taken place in the U.S., or the agreement must be governed by a treaty calling for recognition of awards. For cases routed through ICC, ICDR, or similar institutions, this provision gets you into court.
The Commercial Activity Exception
Under 28 U.S.C. § 1605(a)(2), immunity falls away if the dispute arose from commercial activity by the foreign state in the U.S. It also applies when acts outside the U.S. cause a direct effect here. If you are dealing with a state-owned enterprise that conducted business in Florida, this exception may apply alongside the arbitration exception.
An international litigation attorney at Boyer Law Firm helps clients identify which path fits their situation.
The Waiver Exception
A foreign state that explicitly or implicitly waives its immunity under 28 U.S.C. § 1605(a)(1) cannot later reclaim it. An arbitration clause in a commercial contract can count as an implied waiver. This exception is narrower than the arbitration agreement path, but it adds a second argument when the government’s consent to arbitrate is clear.
When Does Sovereign Immunity Apply vs. Not Apply?
| Exception | When It Applies | What You Need to Show | Key Limitation |
|---|---|---|---|
| Arbitration Agreement | Enforcement of an arbitration agreement or award | Arbitration in the U.S. is governed by the applicable treaty | No valid arbitration agreement means no exception |
| Commercial Activity | Dispute from the sovereign’s commercial acts in or affecting the U.S. | Direct effect of the activity in the United States | Purely governmental acts don’t qualify |
| Waiver | Sovereign explicitly or implicitly waived immunity | Clear evidence of waiver, such as an arbitration clause | Courts interpret implied waiver narrowly |
Your agreement determines which exception applies.
What Recent Court Decisions Tell You About Enforcement
Courts don’t always agree on how these exceptions work. Two recent cases show what this looks like in practice.
The first one helps award-holders. In 2024, the D.C. Circuit decided NextEra Energy v. Kingdom of Spain. Investors had won arbitration awards against Spain under an international energy treaty. Spain refused to pay and claimed sovereign immunity. The court ruled against Spain.
By signing the treaty, Spain had already agreed to arbitrate, and that agreement was enough to strip its immunity in a U.S. court. For you, that means: if a foreign country signed a treaty promising to arbitrate, you can usually enforce the resulting award here.
The second case shows how easily a winning award can become unenforceable. In Amaplat Mauritius Ltd. v. Zimbabwe Mining Development Corp. (2025), investors won an arbitration against a Zimbabwean entity. Instead of bringing the award straight to a U.S. court, they first got a foreign court to convert the award into a judgment, then tried to enforce that judgment in the U.S. The D.C. Circuit threw the case out.
The arbitration exception covers awards, not foreign judgments about awards. The lesson: enforce the award itself, not a court’s blessing of it. One wrong procedural step cost these investors the entire case.
Enforcing an International Arbitration Award in Florida
Florida is one of the most active jurisdictions in the country for international arbitration enforcement. That is not accidental.
Miami hosts arbitration facilities for the ICDR, AAA, and JAMS. The 11th Judicial Circuit also operates the Miami International Commercial Arbitration Court, one of only three specialized arbitration courts in the country. Its judges received training at the University of Miami’s International Arbitration Institute. If your case involves a Central or South American counterparty, Florida is often the natural venue.
At the state level, Florida’s own International Commercial Arbitration Act (Chapter 684) provides a framework for arbitration proceedings seated in Florida. That statute works alongside the federal FSIA and the New York Convention when enforcement involves a foreign sovereign.
The U.S. District Court for the Southern District of Florida handles a high volume of cross-border disputes, particularly those involving Latin American governments and state-owned entities. The Middle District of Florida, including the Jacksonville Division, handles enforcement petitions for businesses based in northern Florida.
Boyer Law Firm has offices in Jacksonville, Miami, Orlando, Tampa, and Boca Raton, which positions our firm to file in whichever district court has jurisdiction over your case.
How Enforcement Works in Practice
Enforcing an award against a sovereign follows a specific sequence. Each step builds on the last.
| Step | What Happens | Why It Matters |
|---|---|---|
| 1. Treaty check | Determine whether your award falls under the New York Convention or the Panama Convention | The applicable treaty shapes your filing requirements |
| 2. FSIA exception selection | Identify which exception strips immunity: arbitration agreement, commercial activity, or waiver | The wrong exception means dismissal, as the Amaplat court showed |
| 3. Venue analysis | Choose between the Southern District (Miami) or the Middle District (Jacksonville) based on contacts | Filing in the right court avoids transfer delays |
| 4. Asset location survey | Identify the sovereign’s commercial assets in the U.S. before filing | Jurisdictional immunity and asset immunity are separate barriers |
Enforcement follows the framework of the New York Convention, the international treaty governing recognition of foreign arbitral awards. Once a court confirms jurisdiction under the FSIA, the Convention provides the mechanism for converting your award into an enforceable judgment. Those two steps are the path forward.
When Sovereign Immunity Defenses Succeed, and What That Means for Your Case
Not every sovereign immunity challenge fails. Knowing where enforcement breaks down matters just as much.
The most common vulnerability is an ambiguous arbitration agreement. If the contract doesn’t clearly commit the foreign government to arbitrate, courts may find the arbitration exception inapplicable. A weak commercial activity nexus to the U.S. creates another gap. If the sovereign’s actions had no direct effect here, that exception falls short.
Separate immunity rules also protect a foreign government’s assets even after jurisdictional immunity is stripped. You might win the right to sue, then face a second barrier when trying to collect.
Your enforcement strategy needs to account for both layers from the start. That is exactly why working with an international arbitration lawyer matters. The strategy begins before the enforcement petition is filed.
Talk to an International Arbitration Lawyer at Boyer Law Firm
At Boyer Law Firm, we work with domestic and international businesses and investors across Florida. Our international arbitration lawyer evaluates which FSIA exception applies, builds the enforcement strategy, and files in the right federal court.
With offices in Jacksonville, Miami, Orlando, Tampa, and Boca Raton, the firm handles enforcement actions across every Florida federal district. If you are holding an arbitration award that a foreign government refuses to honor, schedule a consultation with Boyer Law Firm.
About the Author: Francis M. Boyer is the founding attorney of Boyer Law Firm and a Board Certified Specialist in International Law by The Florida Bar. He is licensed in Florida and New York and has handled international family law cases across the Americas, Europe, and Africa for over 18 years.
FAQs About Sovereign Immunity and International Arbitration
What is sovereign immunity in international arbitration?
Sovereign immunity is the legal principle that foreign governments generally cannot be sued in another country’s courts without consent. In international arbitration, this becomes complicated because the government often agreed to arbitrate in the first place. That agreement can limit or eliminate the immunity defense under the FSIA.
Can you enforce an arbitration award against a foreign government in the United States?
Yes, under specific FSIA exceptions. The most common path is the arbitration agreement exception under § 1605(a)(6), which strips immunity when the foreign state agreed to arbitrate, and you are seeking to confirm the award in a U.S. federal court.
What are the exceptions to sovereign immunity under the FSIA?
The three most relevant exceptions for arbitration enforcement are the arbitration agreement exception, the commercial activity exception, and the waiver exception. Each applies under different circumstances, and the right one for your case depends on how the original agreement was structured and where the commercial activity occurred.
Does the New York Convention override sovereign immunity?
Not directly. The New York Convention governs recognition and enforcement of foreign arbitral awards, but it does not address jurisdiction over sovereign states. Courts use the FSIA to determine jurisdiction first, then apply the Convention to recognize the award. The two frameworks work in sequence.
Why does Florida matter for international arbitration enforcement?
Florida is a major hub for cross-border disputes involving Latin American governments and state-owned enterprises. Miami hosts ICDR, AAA, and JAMS facilities. Federal courts in the Southern and Middle Districts of Florida have experience with these cases. If your dispute has a Latin American connection, an international arbitration attorney in Florida is often the right fit.