Malaysia Sulu case

The Malaysia Sulu case refers to an arbitration case which involving the heirs of the Sultanate of Sulu and the government of Malaysia in the Spanish and later French court system.

Background
The North Borneo dispute arises from an agreement between the now defunct Sultanate of Sulu and the British North Borneo Company in 1878. Under the agreement the Sulu Sultanate gave control of lands in North Borneo and the British are to pay for them a fee annually.

Malaysia after its formation in 1963, would pay the heirs of the Sulu Sultanate a token fee annually until the 2013 Lahad Datu standoff. Heirs, who insist they are not involved with the standoff, sought arbitration over the stoppage of the payment.

Case in Madrid
The Sulu heirs started the ad hoc arbitration process regarding the 1878 agreement in Spain on 30 July 2019. Malaysia did not consent on being part of the arbitration process insisting that the proper venue to resolve the dispute is within its legal system.

In December 2019, the Government of Malaysia commenced proceedings to stop the arbitration.

Malaysian Government argued that the premise of the dispute settlement must in accordance with the provision in the Deed of Cession provided: “In case of any dispute shall arise between His Highness the Sultan, his heirs or successors and the said Gustavus Baron de Overbeck or his Company it is hereby agreed that the matter shall be submitted to Her Britannic Majesty’s Consul-General for Borneo.”

Gonzalo Stampa would be the arbitrator of the case. On 25 May 2020, Stampa would grant a partial award to the Sulu heirs. This would be stopped by the Madrid High Court in June 2021 which annulled Stampa's appointment due to failure to properly notify Malaysia, who had no official representation, about the case. Malaysia non-representation because they already filed the challenge of jurisdiction upon the arbitration earlier

Move to Paris and final award
The arbitration would be moved by Stampa to a court in Paris. In February 2022, Stampa now hearing the case in the French legal system would rule that Malaysia owes the Sulu heirs $14.92 billion.

Malaysian appeal and assets seizing attempt
Malaysia would obtain a favorable ruling from the Court of Appeal of Paris on 6 July 2023 which concluded that court which granted award to the Sulu heirs has no jurisdiction to hear the case in the first place. It also obtained a stay order to prevent the enforcement of the final award in the French court system the month prior.

Nevertheless the Sulu heirs would pursue the award ruling's enforcement. They made failed bids to acquire Malaysian assets in France, the Netherlands, and Luxembourg.

Sampa criminal case
Sulu case arbitrator, Gonzalo Stampa was faced with criminal charge for "unqualified professional practice" in December 2023. Stampa was found guilty of contempt of court and has been sentenced by the Spanish courts to six months in prison together with a ban from practising as an arbitrator for a year. On 17 May 2024, the Madrid Court of Appeal upheld the Madrid Criminal Court's 2023 judgement finding Stampa guilty of contempt of court.

Claimants
According to the Malaysian government, the following are the heirs involved in the Sulu case which it says to be Filipino citizens:


 * Nurhima Kiram Fornan
 * Fuad A. Kiram
 * Sheramar T. Kiram
 * Permaisuli Kiram–Guerzon
 * Taj–Mahal Kiram–Tarsum Nuqui;
 * Ahmad Nazard Kiram Sampang (d. 2023)
 * Jenny K.A. Sampang
 * Widz–Raunda Kiram Sampang

Reactions
Malaysia has viewed the move by the Sulu heirs as a violation of its sovereignty by seeking arbitration in foreign courts without its consent. Sampa and the Sulu heirs has been criticized for forum shopping.

In mid-2023, Malaysian parliament member Khlir Mohd Nor, who believe that the Philippine government is involved in the 2013 Lahad Datu standoff also alleges that the Philippine government is involved in the Sulu case. Prime Minister Anwar Ibrahim who had met with Philippine President Bongbong Marcos said that the Philippine government is not involved in the Sulu case and iterated Malaysian policy of not entertaining claims on the sovereignty over Sabah.