Momentous Victory for the Rule of Law: France’s Highest Civil Court Rejects Sulu Sultanate’s Appeal
PETALING JAYA
France’s highest civil court has rejected an appeal lodged by self-proclaimed descendants of the Sulu sultanate over an award of nearly US$15 billion, drawing a line under a years-long legal battle with Malaysia.
The Dispute: A Brief Overview
The Filipino heirs of the last Sultan of Sulu won a US$14.9 billion award in a French arbitration court in 2022 in a long-running dispute over a colonial-era land deal. The award prompted them to go after global assets belonging to the Malaysian government and state-owned companies.
The Background: A Historical Agreement
The dispute dates back to an 1878 agreement between the old Sulu kingdom in the Philippines and a representative of the British North Borneo Company, which used to administer what is now Sabah. Under the agreement, the then sultan of Sulu, Sultan Jamal Al Alam, ceded sovereignty over large parts of Sabah to Baron de Overbeck, the then maharaja of Sabah, and British North Borneo Company’s Alfred Dent. In exchange, de Overbeck and Dent agreed that they and their future heirs were to pay the heirs of the sultan 5,000 Mexican dollars annually.
The Payments: A Historical Context
The payments, equivalent to RM5,300 a year, were made until 1936, when the last formally-recognised sultan of Sulu, Jamalul Kiram II, died without heirs. Payments temporarily ceased until North Borneo High Court chief justice Charles F Macaskie named nine court-appointed heirs in 1939. Malaysia took over these payments when it became the successor of the agreement following Sabah’s independence and the formation of Malaysia in 1963. However, Putrajaya ceased the payments in 2013 after a deadly incursion by armed men into Lahad Datu, along the eastern coast of Sabah.
The Arbitrator: Gonzalo Stampa
The controversy surrounding the award was largely attributed to arbitrator Gonzalo Stampa, who had been appointed to hear the case. Stampa had previously been found guilty of contempt of court and unqualified professional practice for defying a Madrid court’s decision to annul the Sulu claimants’ case. He was charged with contempt of court and unqualified professional practice for defying a Madrid court’s decision to annul the Sulu claimants’ case.
The Ruling: A Victory for the Rule of Law
Law and institutional reform minister Azalina Othman Said welcomed the "momentous victory" for the rule of law, which she said would help preserve the sanctity of international arbitration as an alternative form of dispute resolution. "This important decision means that the initial basis for the sham ‘final award’ that ordered Malaysia to pay US$15 billion is not recognised under French law," she said in a statement. "The Paris Court of Appeal will now proceed, in due course, to annul the so-called ‘final award’ rendered by arbitrator Gonzalo Stampa and will definitively settle the matter in favour of the Malaysian people."
Conclusion
The rejection of the Sulu sultanate’s appeal marks the end of a years-long legal battle between Malaysia and the self-proclaimed descendants of the Sulu sultanate. The decision is a significant victory for the rule of law, which will help preserve the sanctity of international arbitration as an alternative form of dispute resolution.
Frequently Asked Questions
Q: What is the disputed agreement?
A: The disputed agreement is an 1878 agreement between the old Sulu kingdom in the Philippines and a representative of the British North Borneo Company, which used to administer what is now Sabah.
Q: What is the amount awarded to the Sulu sultanate?
A: The Sulu sultanate was awarded US$14.9 billion in a French arbitration court in 2022.
Q: What is the significance of the ruling?
A: The ruling is a significant victory for the rule of law, which will help preserve the sanctity of international arbitration as an alternative form of dispute resolution.