The decision followed a hearing on July 7 where the court considered arguments on the merits of Malaysia’s bid to annul the controversial final award, said law and institutional reform minister Azalina Othman Said.
The case is part of ongoing legal proceedings in France to determine the validity of the award, issued in 2022 by a sole arbitrator in a disputed arbitration process.
In a statement tonight, Azalina said that during the July 7 hearing, the claimants attempted to delay the proceedings to respond to a written opinion by the French public prosecutor.
The court, however, denied the request and proceeded with the scheduled hearing.
“Malaysia expresses full confidence in the Paris Court of Appeal’s judicial process and its forthcoming decision,” she said, adding that the decision is expected to bring a “definitive end” to the Sulu group’s claim.
Azalina also said Malaysia continues to champion the development of a global framework that places transparency at the core of third-party litigation funding. Such a framework is vital to ensuring that mechanisms intended to enhance access to justice are not exploited as “instruments of lawfare” against sovereign states.
“The integrity of international arbitration must be preserved against attempts to coerce sovereign nations through baseless arbitration claims,” she said.
The government previously said the Sulu heirs were being funded by London-based litigation funder Therium.
The Paris Court of Appeal had earlier paused its annulment proceedings while awaiting a ruling from the French Court of Cassation, the highest court in the country’s judicial system.
That ruling, delivered on Nov 6, 2024, upheld a previous decision by the Paris Court of Appeal rejecting enforcement of a partial award in the same case in which the arbitrator Gonzalo Stampa had claimed jurisdiction.
Azalina previously said several recent rulings in Malaysia’s favour have significantly strengthened the country’s legal position in the case, which included the French Court of Appeal’s criminal conviction of Stampa for contempt of court.
The case stems from a long-running dispute with Malaysia over annual payments to the Sulu heirs as compensation for the cession of Sabah to the North Borneo Company in 1878.
Malaysia stopped the payments after an armed incursion by Sulu claimants in 2013 to pursue a claim of sovereignty over Sabah.
Eight Filipino nationals claiming to be heirs of the now-defunct Sulu sultanate had filed arbitration proceedings in Spain to demand billions of US dollars from Malaysia.
In March 2019, a court in Madrid appointed Stampa as the arbitrator for the case.
On Feb 28, 2022, Stampa ruled in favour of the group and issued a final award of US$14.9 billion through an unlawful arbitration process, despite his appointment having been annulled by a Spanish court.
Malaysia subsequently secured a series of legal victories in the case, including in November last year, when the French Supreme Court fully rejected the group’s legal challenge.
This meant that the original basis for the final award, which required Malaysia to pay US$14.9 billion in compensation, was not recognised under French law.