The Federal Court of Australia has granted Stantec New Zealand permission to serve legal documents on the Fiji Roads Authority (FRA) in a significant legal development regarding an international arbitration case. This ruling, delivered by Justice Michael Feutrill on September 17, 2025, marks a crucial step towards a full hearing scheduled for the following month. It sets a notable legal precedent for the cross-border enforcement of arbitral awards.
The case involves a dispute stemming from a consultancy agreement signed in 2016, focusing on road development projects in Fiji. In January 2022, an arbitral award ordered the FRA to pay Stantec over $10.4 million, along with additional arbitration-related expenses across multiple currencies, including Fijian, New Zealand, and US dollars.
Despite the FRA’s lack of a formal service address in Australia, the court’s acceptance of legal service in compliance with Fijian law—via delivery to the FRA’s chairman in Suva—demonstrates adherence to Fiji’s High Court Rules, which allow personal service on corporate bodies through their principal officers.
Justice Feutrill acknowledged that, although foreign entities often receive immunity under Australian law, exceptions exist within the Foreign States Immunities Act 1985, particularly regarding the enforcement of commercial arbitration awards. He elaborated, “It is reasonably arguable that the Authority is not immune from the jurisdiction of the Court.”
The case is set for a final hearing on October 17, 2025, where the Australian court will deliberate on the possibility of proceeding with enforcement actions against the FRA.
This legal proceeding highlights the complexities of cross-border arbitration enforcement and underscores the necessity for a robust legal framework for resolving international commercial disputes. As the case develops, it will likely draw attention to the intricacies involved in international arbitration cases and the importance of clear legal structures in maintaining global business relations. Overall, while the process may seem contentious, it contributes positively by clarifying the mechanisms through which international arbitration awards can be enforced across borders, potentially facilitating smoother international business interactions in the future.