Petersen Energía Inversora, S.A.U. v Argentine Republic

In the case of Petersen Energía Inversora, S.A.U. v Argentine Republic, the plaintiff, a Spanish company, sought to enforce an arbitral award against the defendant, the Argentine Republic, in the Federal Court of Australia. The dispute arose from a contractual disagreement between the plaintiff and the Argentine government. The central issue before the court was whether service of the initiating process on the Argentine Republic complied with the requirements set out in the Foreign States Immunities Act 1985 (Cth) and the Hague Service Convention.

The court examined whether the Hague Service Convention provided the exclusive means for serving a foreign state with initiating process and whether service of process under section 24 of the FSIA was consistent with Australia’s international law obligations and the principle of international comity. The plaintiff argued that service via diplomatic channels, as permitted by section 24 of the FSIA, was not only consistent with the Hague Service Convention but also adhered to international comity. The court found that section 24 of the FSIA, which allows for service through diplomatic channels, was in line with the Hague Service Convention and did not contravene Australia's international law obligations. Consequently, the service of process was deemed valid.