A Spanish court has upheld its decision to annul the appointment of arbitrator Gonzalo Stampa in the Sulu case, rejecting an attempt by the claimants to revive his role.

The High Court of Justice of Madrid ruled on February 11 that its 2021 decision to invalidate Stampa’s judicial appointment remains final. 

It dismissed the claimants’ request to overturn the ruling, saying their arguments lacked legal merit and were based on speculation rather than evidence.

The case involves individuals claiming to be heirs of the defunct Sulu sultanate, who are seeking billions of dollars from Malaysia over a colonial-era land lease. Malaysia has repeatedly challenged the legitimacy of the arbitration process, describing it as fraudulent.

In a statement, Malaysia’s War Room of the Special Secretariat on the Sulu Claim welcomed the court’s decision, calling it “another clear rejection of the claimants’ attempts to manipulate the legal system.”

“The Madrid court has reaffirmed that Stampa’s appointment was flawed from the outset,” the task force said. “This means all arbitration decisions made under his authority are void.”

The dispute dates back to 2021 when the Madrid High Court ruled that Spain’s legal process for appointing Stampa had failed to notify Malaysia, a sovereign state, in accordance with Spanish law. It annulled his appointment and directed that the arbitration process restart with proper notification.

Despite this, Stampa continued the proceedings and moved the arbitration from Madrid to Paris, allegedly to avoid Spanish jurisdiction. He was later convicted by a Spanish criminal court for disobeying a judicial order.

The latest ruling also rejected the claimants’ assertion that Spain’s Foreign Ministry had pressured the judiciary over economic ties with Malaysia. The court found no credible evidence to support the claim, which was based on a single news article.

“The judiciary has made it clear that its decision was grounded in law, not external influence,” Malaysia’s task force said.

The ruling means the claimants must now cover legal costs for their failed appeal. Malaysia has vowed to continue fighting any attempts to enforce the arbitration ruling in other jurisdictions.

“The so-called Sulu claim is an abuse of international arbitration,” the task force added. “Malaysia will not allow it to stand.” – February 18, 2025