Paris: The Paris Court of Appeal has nullified the 'Final Award' previously granted by arbitrator Gonzalo Stampa on February 28, 2022, in favor of the so-called Sulu claimants, mandating them to reimburse Malaysia with costs amounting to £200,000.

According to BERNAMA News Agency, a statement from the Sulu Special Secretariat War Room, representing the Malaysian government, confirmed the court's decision was handed down on December 9, and the official judgment was received overnight. The court determined that Stampa had no jurisdiction to issue the 'Final Award', as there was no valid arbitration agreement binding Malaysia.

The statement emphasized that the court's annulment of the 'Final Award' is a significant victory for Malaysia. It expressed hope that this ruling would terminate further attempts by the claimants and their litigation funder, Therium, to extract money and assets from Malaysia.

Furthermore, the statement reiterated Malaysia's firm stance to robustly defend itself against any additional legal actions initiated by the claimants. Prior to this ruling, the Paris Court of Appeal had refused to recognize or enforce the 'Partial Award' on June 6, 2023, a decision that the French Supreme Court later upheld on November 6, 2024.

The Malaysian government also reaffirmed its commitment to defending the nation's sovereignty, immunity, and national interests against these claims. The dispute originated when eight Filipino nationals, claiming descent from the now-defunct Sulu Sultanate, initiated arbitration proceedings in Spain, demanding substantial compensation over Sabah.

In March 2019, a Madrid court appointed Stampa as arbitrator for the case. However, on February 28, 2022, he issued a 'Final Award' of USD 14.9 billion to the claimants, despite his appointment being annulled by a Spanish court, making the arbitration process unlawful.