“Finality After Article 30 & Automatic Confirmation Under FAA Chapter Two” – A Commentary on First Kuwaiti General Trading & Contracting W.L.L. v. Kellogg Brown & Root International, Inc.

“Finality After Article 30 & Automatic Confirmation Under FAA Chapter Two”
A Comprehensive Commentary on First Kuwaiti General Trading & Contracting W.L.L. v. Kellogg Brown & Root International, Inc. (4th Cir. 2025)

1. Introduction

The United States Court of Appeals for the Fourth Circuit’s published decision in First Kuwaiti General Trading & Contracting W.L.L. v. Kellogg Brown & Root International, Inc., No. 23-2121 (June 17, 2025) delivers two significant pronouncements for international arbitration practitioners:

  1. An International Centre for Dispute Resolution (ICDR) “final award” remains final for purposes of the three-month vacatur period in Federal Arbitration Act (FAA) § 12 even when the tribunal later issues an Article 30 “corrections & clarifications” decision; and
  2. When at least one party is foreign, district courts may confirm an award under FAA Chapter Two without any contractual consent to judicial confirmation, making the “consent” requirement of Chapter One irrelevant.

Set against a two-decade war-time contracting saga between Kuwaiti subcontractor First Kuwaiti and U.S. defense giant KBR, the ruling ties up the last procedural loose ends of a sprawling arbitration/litigation marathon and sharply delineates the interplay between ICDR internal procedures and the FAA’s strict time limits.

2. Summary of the Judgment

  • Vacatur Denied as Untimely – The court held that First Kuwaiti’s motion to vacate was filed more than three months after the tribunal’s July 26 2022 “Final Award,” and Article 30 proceedings did not reset the FAA § 12 clock.
  • Award Confirmed – The district court correctly confirmed the award; because First Kuwaiti is a foreign party, confirmation lies under FAA Chapter Two, which needs no express consent.
  • Pre-Judgment Interest Refused – The district court did not abuse its discretion in refusing to add prejudgment interest to 2009 and 2014 stipulations; the arbitral panel either denied or left no basis for such interest.

3. Detailed Analysis

3.1 Precedents Cited & Their Influence

Case / Authority Key Proposition Adopted by 4th Cir.
Norfolk S. Ry. Co. v. Sprint Communications Co. Defines when an arbitral award is “final” – i.e., when it disposes of all issues submitted.
T.Co Metals, LLC v. Dempsey Pipe & Supply, Inc. Article 30 of the ICDR Rules is a narrow clerical tool; it cannot be used for substantive reconsideration.
Gonsalvez v. Celebrity Cruises Inc. Failure to move to vacate within § 12’s three-month period is jurisdictionally fatal.
Phoenix Aktiengesellschaft v. Ecoplas, Inc. Under Chapter Two, consent to confirmation is not required.
Ministry of Def. (Iran) v. Cubic Defense Systems Court may not grant interest the tribunal declined.

3.2 Court’s Legal Reasoning

  1. Finality Analysis
    • The tribunal labelled its July 2022 instrument “FINAL AWARD,” expressly noted it was disposing of all “consolidated claims,” and grounded its authority in the parties’ agreement for “final and binding” arbitration.
    • The later 23-page Article 30 decision only clarified arithmetic issues and expressly rejected substantive reconsideration. Hence it did not create a new “award.”
    • Under Norfolk Southern, the July award was final; therefore § 12’s limitation ran from July 26 2022. The January 5 2023 vacatur motion was out of time.
  2. Confirmation Authority
    • Although KBR styled its motion under FAA Chapter One (§ 9), the Fourth Circuit held Chapter Two (§ 207) governs whenever “at least one party is not a U.S. citizen.”
    • Chapter Two’s language is mandatory: “the court shall confirm the award unless” a listed ground for refusal exists. There is no consent prerequisite. Thus, the district court had authority even if the parties never contemplated U.S. court enforcement.
  3. Pre-Judgment Interest
    • The panel either implicitly denied or at minimum did not grant interest; district courts cannot rewrite the award.
    • Even if the issue had been open, the district court found – based on contract language and negotiation context – the parties never agreed to interest, so equitable relief was unwarranted.

3.3 Anticipated Impact

  • Article 30 Strategy – Parties can no longer assume that filing broad Article 30 requests will toll or restart the FAA § 12 clock. Counsel must calendar the three-month deadline from the original “Final Award.”
  • Forum Selection & Enforcement – International parties who thought they could avoid U.S. court involvement by omitting a confirmation clause are on notice: Chapter Two confers compulsory federal jurisdiction anyway.
  • Interest Awards – The decision reinforces that silence or denial by the tribunal is effectively final; parties should plead and prove their interest claims during the arbitration, not in post-award litigation.
  • Fourth Circuit Consistency – This opinion aligns the Fourth Circuit with the Second, Third, Ninth, and D.C. Circuits on Chapter Two confirmation standards, promoting nationwide uniformity.

4. Complex Concepts Simplified

FAA § 12 “Three-Month Rule”
A strict statute of limitations: you have 90 days from the day the final award is delivered to ask a court to throw it out. Miss it, and the award is practically bullet-proof.
ICDR Article 30
A rule allowing parties to correct typos, arithmetic mistakes, or ask for an omitted claim to be addressed. It is not a “motion for reconsideration.”
Chapter One vs. Chapter Two of the FAA
Chapter One (§§ 1-16) applies to domestic awards; confirmation requires that the parties agreed to court enforcement. Chapter Two (§§ 201-208) implements the New York Convention for “international” awards; courts must confirm unless a Convention defense applies, and no party consent is required.
Pre-judgment Interest
Extra money added to compensate for the time the winning party waited to be paid before judgment. Arbitrators can award it; courts rarely add it after the fact.

5. Conclusion

The Fourth Circuit’s decision in First Kuwaiti v. KBR cements two guiding principles for future international arbitration practice:

  1. ICDR Article 30 activity does not disturb the finality of a deliberately labelled “Final Award,” and therefore does not extend the FAA § 12 vacatur deadline.
  2. Where a foreign party is involved, FAA Chapter Two gives federal courts automatic power – and, absent Convention defenses, the duty – to confirm an award, irrespective of contractual language on court enforcement.

Practitioners must therefore treat the first “final award” as truly final for vacatur purposes, and they should advise clients that U.S. federal confirmation can proceed even in the absence of an express consent clause. The ruling enhances predictability, fortifies the enforcement regime envisioned by the New York Convention, and underscores the limited, deferential role of U.S. courts in post-award proceedings.

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