Summary

Petitioner Perenco Ecuador Limited ("Perenco"), by and through undersigned counsel, submits this brief in accordance with this Court's minute order dated January 18, 2022. Perenco brought this action in order to enforce an arbitration award against Respondent The Republic of Ecuador ("Ecuador"). Petition to Enforce Arbitral Award ("Petition"), ECF No. 1. Ecuador's only defense to enforcement is its argument that various Ecuadorian income tax claims can be set off against the award, or, to the extent they are not yet final and enforceable, warrant a stay of enforcement. Partial Opposition to Petition to Enforce Arbitral Award and Cross-Motion for Setoff, ECF No. 20 ("Cross-Motion"). On November 8, 2021, the Tax Chamber of the Ecuadorian National Court of Justice-Ecuador's highest court-overturned one of the Ecuadorian tax judgments that Ecuador sought to set off in its Cross-Motion. That decision not only precludes Ecuador from seeking to set off the particular tax debt at issue, but also establishes that all of the purportedly final tax assessments are still subject to valid and meritorious challenges and thus cannot be enforced against Perenco via a set-off in this case.