A Florida district court judge has struck down a motion by Ferrominera Orinoco to dismiss a $62.7m arbitration award to Commodities & Minerals Enterprise (CME).
Judge Jose Martinez gave several reasons for his ruling, including Ferrominera's "baseless" claim that a New York arbitration panel "imperfectly executed its power", according to court documents.
He also said the arbitration panel may decide where arbitration hearings may occur, dismissing Ferrominera's claim of lack of New York jurisdiction for the Miami-based case.
Martinez further argued that the award need not be remanded to the arbitration panel until the court settles the jurisdictional disputes raised by Ferrominera.
CME in January 2017 persuaded the Society of Maritime Arbitrators panel to award payment as security for $234m in claims related to a fleet of geared bulkers used to export Venezuela's iron ore.
"We're very pleased with the decision and we think it is correct with the law," CME lawyer Bruce Paulsen of New York firm Seward & Kissel said.
"The judge did a very thorough job."
An email to Ferraminero lawyer Alfredo de Jesus of Paris-based Jesus & de Jesus, was not immediately returned.
The unanimous decision is the largest security award ever for the SMA, according to maritime lawyers.
British Virgin Islands-based CME has fought Ferraminera over $413m involving their iron ore supply and logistics partnership, which dissolved after the miner was taken over by Venezuela's government.
