Paris – On July 7, the Paris Court of Appeal will hear what
is expected to be the final legal challenge in a dispute involving a nearly
US$15 billion arbitration award tied to historical claims over Sabah, a
Malaysian state on the island of Borneo.

The hearing follows multiple rulings across Europe rejecting
attempts by individuals claiming to be heirs of the former Sultan of Sulu to
enforce the award issued by Spanish arbitrator Gonzalo Stampa in 2022. Stampa
was later convicted by a Spanish court for contempt and banned from acting as
an arbitrator for one year.

At the heart of the case is an 1878 agreement between the
Sultan of Sulu and European traders, which remains the subject of legal and
historical debate.

Efforts to enforce the arbitration award have been dismissed
in Spain, France, the Netherlands, and Luxembourg, with courts citing
procedural irregularities, jurisdictional overreach, and the annulment of
Stampa’s mandate by Spanish authorities.

With the upcoming Paris ruling, legal experts anticipate
closure in a case that has tested the boundaries of international arbitration
and sovereign immunity. Malaysian officials have expressed confidence that the
Court of Appeal will reaffirm the inapplicability of arbitration to the 1878
agreement.