Paris: The decision by the Paris Court of Appeal to fully annul the ‘Final Award’ in the claim by individuals purporting to be heirs of the defunct Sulu Sultanate over Sabah has been described as a major victory for Malaysia. Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said stated that this outcome is not only a legal success but also affirms the dignity, sovereignty, and rights for all Malaysians, particularly the people of Sabah.

According to BERNAMA News Agency, Azalina expressed her gratitude towards Prime Minister Datuk Seri Anwar Ibrahim, Cabinet members of the MADANI Government, and various government agencies, including the Attorney-General’s Chambers (AGC) and Wisma Putra. She noted that their collective efforts were instrumental in achieving this outcome, which underscores the government’s commitment to defending the nation based on principles and the rule of law.

The Paris Court of Appeal’s decision annulled the ‘Final Award’ issued by arbitrator Gonzalo Stampa on 28 February 2022 and ordered the Sulu claimants to pay costs of £200,000 (USD 232,734) to Malaysia. The court concluded that Stampa lacked jurisdiction to issue the award due to the absence of a valid arbitration agreement binding Malaysia.

The case began when eight Philippine nationals, claiming to be heirs of the Sulu Sultanate, initiated arbitration proceedings in Spain, seeking billions in compensation from Malaysia over Sabah. In March 2019, a Madrid court appointed Stampa as arbitrator, but his appointment was later revoked, rendering the ‘Final Award’ invalid. The Paris Court of Appeal had previously rejected the recognition of a ‘Partial Award’ in June 2023, a decision upheld by the French Court of Cassation in November 2024.