CIADI

ITN  |  abril 3, 2009

Deutsche Bank targets Sri Lanka with a BIT claim connected to a hedging contract

By Damon Vis-Dunbar 3 April 2009 A dispute related to oil derivatives entered into by Sri Lanka’s state-run petroleum utility has led at least one foreign bank to file arbitration proceedings against the Government of Sri Lanka. The state-run Ceylon Petroleum Corporation (CPC) entered into hedging contracts with a number of foreign and local banks […]

ITN  |  abril 2, 2009

European miners and South Africa suspend proceedings

By Damon Vis-Dunbar 2 April 2009 (Note: a correction has been made to this article. An explanation is posted below). A group of European’s with a stake in South Africa’s granite-quarrying sector and the Government of South Africa have agreed to suspend arbitration proceedings* for two months. The claimants—several Italians and a Luxembourg corporation—allege that […]

ITN  |  marzo 30, 2009

CIT Group settles with Argentina

By Damon Vis-Dunbar 30 March 2009 The American finance company CIT Group has reached a settlement with Argentina, bringing to close ICSID arbitration proceedings which began in 2003. CIT Group had been seeking some US$124 million for alleged violations of the US-Argentina bilateral investment treaty, in one of the many disputes that arose with foreign […]

ITN  |  marzo 27, 2009

Meg Kinnear electa como Secretaria General del CIADI

Por Damon Vis-Dunbar 3 de marzo 2009 Una ciudadana canadiense fue electa como la nueva secretaria del Centro Internacional de Arreglo de Diferencias Relativas a Inversiones (CIADI) del Banco Mundial, la sede de alto perfil que atiende arbitrajes entre inversor-estado. Meg Kinnear, quien ha trabajado como abogada para el Gobierno canadiense desde 1984, dejará su […]

ICSID tribunal dismisses RSM Production Corporation’s claim against Grenada

By Damon Vis-Dunbar 26 March 2009 An American businessman has failed in his claim against Grenada under a 1996 oil and gas agreement, in a contract dispute conducted before an ICSID tribunal. Initiated in 2005, the ICSID claim was one of a host of legal avenues pursued by Jack J. Grynberg, the president and CEO […]

ITN  |  marzo 23, 2009

South African court judgment bolsters expropriation charge over Black Economic Empowerment legislation in the mining sector

By Damon Vis-Dunbar 23 March 2009 A South African judicial ruling has opened the door for two plaintiffs to seek compensation for alleged expropriation of their mineral rights, in a case that echoes the complaints made by European investors in a pending international arbitration against South Africa under bilateral investment treaties. The judgment* comes in response […]

ITN  |  marzo 16, 2009

Argentina ordered to place US$75 million in escrow pending annulment decision on Sempra award

By Fernando Cabrera Diaz 16 March 2009 An ad-hoc committee formed under the rules of the International Centre for Settlement of Investment Disputes (ICSID) has ordered Argentina to put up US$75 million in escrow as a condition of a continued stay in the enforcement of an award. Under ICSID rules a party seeking the annulment […]

ITN  |  marzo 16, 2009

Reflections on Pakistan’s investment-treaty program after 50 years: an interview with the former Attorney General of Pakistan, Makhdoom Ali Khan

By Lauge Skovgaard Poulsen and Damon Vis-Dunbar 16 March 2009 Pakistan inked the first ever bilateral investment treaty (BIT) with the government of West Germany 50 years ago, before going on to accumulate one of the largest portfolios of BITs held by a developing country: some 47 in total, 35 of which were signed in […]

ITN  |  marzo 5, 2009

Letter to the Editor: ICSID elects new Secretary-General

4 March 2009 Dear Sir, The lead article in the March 2009 issue of ITN regarding the election of Ms. Kinnear as ICSID Secretary-General is couched in unfortunate prose.  The author seems to advocate a political role for the incoming Secretary-General. Indeed, the article states: “In light of the attention ICSID receives, the role of the […]

ITN  |  marzo 3, 2009

Meg Kinnear elected as Secretary-General of ICSID

By Damon Vis-Dunbar  3 March 2009 A Canadian national has been elected as the new Secretary-General of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), the high-profile facility for investor-state arbitrations.  Meg Kinnear, who has worked as a lawyer for the Canadian government since 1984, will leave her post as Director General […]

ITN  |  febrero 23, 2009

ICSID registers claim by Spanish investor against Argentina over airline dispute

By Fernando Cabrera Diaz 20 February 2009 The Spanish investor Grupo Marsans is behind a claim against Argentina registered by the International Centre for Settlement of Investment Disputes on 30 January 2009. A spokesperson for the Madrid-based Grupo Marsans, Angel Del Rio, said his company had launched those proceedings through a holding company, Teinver S.A, […]

ITN  |  enero 16, 2009

Continental Casualty Company moves to annul award favourable to Argentina

By Damon Vis-Dunbar 16 January 2009 The Illinois-based Continental Casualty Company has moved to annul an ICSID award that was largely in favour of the Republic of Argentina. In a 5 September 2008 ruling, Continental Casualty was awarded US$2.8 million, a small part of the US$112 million that the firm claimed from Argentina after its […]

ITN  |  enero 12, 2009

Argentina toma la ofensiva ya que Siemens se declara culpable de cargos de corrupción

Por Damon Vis-Dunbar 23 de Diciembre de 2008 Argentina ha rechazado el pedido de Siemens de suspender el procedimiento del Centro Internacional de Arreglo de Diferencias Relativas a Inversiones (CIADI) donde un comité está considerando la solicitud de Argentina de revisar un laudo dictado en 2007, después de que la firma alemana asumiera que había […]

ITN  |  enero 12, 2009

Perú gana demanda multimillonaria del CIADI sobre un acuerdo de estabilización presentada por una firma americana de energía

Por Fernando Cabrera Díaz 23 de Diciembre de 2008 La República de Perú se ha defendido con éxito en contra de una demanda iniciada por la firma Aguaytia Energy LLC (AEL) con sede en Delaware. AEL ha reclamado US$142 millones en compensación por lo que según alega fue la violación de un acuerdo de estabilización […]

ITN  |  enero 9, 2009

Tribunal pierces the corporate veil in jurisdictional decision involving Argentina

By Damon Vis-Dunbar 9 January 2009 Two out of three members of an ICSID tribunal have declined jurisdiction in a claim brought by TSA Spectrum de Argentina S.A. (TSA) against the Argentine Republic under the Netherlands-Argentina bilateral investment treaty, having determined that TSA is not covered by the treaty because it is owned by an […]

German firm fails to pass jurisdictional hurdle in claim against Argentina; decision provokes questions about the scope and applicability of MFN Protection

By Elizabeth Whitsitt 5 January 2009 An ICSID tribunal has declined jurisdiction in a claim brought by a German firm against the government of Argentina, in a decision that marks the unpredictability over whether a claimant can invoke a Most-Favoured-Nation (MFN) clause to access an expedited arbitration process. The claimant, Wintershall Aktiengesellschaft, alleged that the […]

ITN  |  diciembre 23, 2008

Argentina takes the offensive as Siemens pleads guilty to corruption charges

By Damon Vis-Dunbar 23 December 2008 Argentina has refused calls by Siemens to suspend proceedings at the International Centre for the Settlement of Investment Disputes (ICSID) in which a committee is considering Argentina’s request to revise a 2007 award, following the admission that the firm’s Argentinean subsidiary paid government officials in order to obtain a lucrative […]

Laudos  |  diciembre 23, 2008

Peru wins dispute with American energy firm over the scope of a stabilization agreement

By Fernando Cabrera Diaz 23 December 2008 The Republic of Peru has defended itself successfully against a claim initiated by Delaware-based Aguaytia Energy LLC (AEL). AEL had sought US$142 million as compensation for what it claimed was Peru’s violation of a stabilization agreement. However, the Tribunal disagreed and instead held that the stability agreement did […]

ITN  |  diciembre 15, 2008

Se Debaten Méritos de Arbitraje entre Inversor-Estado en Seminario de Arbitraje Internacional auspiciado por Fiscal General ecuatoriano

Por Fernando Cabrera Díaz 9 de Diciembre, 2008 El 1-2 de diciembre Noticias sobre Tratados de Inversión asistió a un seminario de dos días sobre arbitraje internacional en Quito, Ecuador, auspiciado por la Procuraduría General de Ecuador. El seminario se enfocó en el arbitraje internacional de inversión y su relación con la soberanía estatal. Se […]

ITN  |  diciembre 9, 2008

Merits of investor-state arbitration debated at international arbitration seminar hosted by Ecuador’s Attorney General

By Fernando Cabrera Diaz 9 December 2008 On 1-2 December Investment Treaty News attended a two-day seminar on international arbitration in Quito, Ecuador, hosted by Ecuador’s Attorney General’s Office. The seminar focused on international investment arbitration and its relation to state sovereignty. Opinions from different sides of the debate were voiced, including from Ecuadorean government […]

ITN  |  diciembre 8, 2008

Objeción de Guatemala a jurisdicción de tribunal rechazada en arbitraje del TLCAC-RD

Por Damon Vis-Dunbar 26 de Noviembre 2008 El primer arbitraje de inversión a ser iniciado bajo el Tratado de Libre Comercio entre la República Dominicana – América Central – Estados Unidos (TLCAC-RD) sigue avanzando después de que el Tribunal rechazara en noviembre una objeción a su jurisdicción presentada por Guatemala. Railroad Development Corporation (RDC), la […]

Investment Arbitration in Brazil: Yes or No?

By Elizabeth Whitsitt and Damon Vis-Dunbar30 November 2008 In 1991, Brazil began one of the world’s largest privatization programs, selling more than US$100 billion worth of assets. Seventeen years later and with a Gross Domestic Product (GDP) that ranks tenth in the world, Brazil is an industrial power that, according to the World Bank, is […]

Laudos  |  noviembre 28, 2008

Algeria prevails in dispute with Italian construction firms

By Suzy H. Nikiéma 28 November 2008 In a 12 November 2008 final award, an ICSID tribunal has dismissed all claims by two Italian investors, L.E.S.I S.p.A. and ASTALI S.p.A, in a dispute with the government of Algeria over a failed contract to construct a hydraulic dam. While the contract with the National Agency for […]

Laudos  |  noviembre 17, 2008

Belgium dredging companies fail in arbitration against Egypt

By Damon Vis-Dunbar 17 November 2008 The Egyptian government has deflected a US$ 80 million dollar claim by two companies hired to dredge the Suez Canal. Jan de Nul N.V. and Dredging International, both incorporated in Belgium, won a bid to dredge sections of the Suez Canal 1992, a job they completed some three years […]

ITN  |  octubre 29, 2008

Canadian investors sue Costa Rica alleging failure to protect their farm

By Fernando Cabrera Diaz and Damon Vis-Dunbar 29 October 2008 A tribunal has been constituted in an arbitration that pits a group of Canadian investors against the government of Costa Rica. The claimants—Vancouver-based Quadrant Pacific Growth Fund L.P. and Conasco Holdings Inc—allege that Costa Rican authorities failed to protect their orange plantations from peasants who […]

Laudos  |  septiembre 30, 2008

Plama Consortium Limited v. Republic of Bulgaria: Honesty is the best policy

By Elizabeth Whitsitt 30 September 2008 In a 27 August 2008 decision, a tribunal has concluded that Plama Consortium Limited (PCL), a Cyprus firm, was not entitled to protections afforded under the Energy Charter Treaty (ECT), given that it had fraudulently misrepresented itself when it invested in a privatized refinery, Nova Plama AD. In addition, […]

ITN  |  septiembre 26, 2008

Caratube International Oil Company LLP v. Republic of Kazakhstan: American investor sues Kazakhstan over oil-field dispute

By Damon Vis-Dunbar 26 September 2008 A US citizen, Devincci Salah Hourani, has launched a lawsuit against the government of Kazakhstan over a failed contract to explore and exploit oil in the country. Mr. Hourani, who holds a 92% stake in the Kazakh firm Caratube International Oil Company (CIOC), has alleged breaches of the United […]

ITN  |  septiembre 22, 2008

Ecuador hallado culpable por violación de contratos de compraventa de energía eléctrica y tratado de inversión

Por Damon Vis-Dunbar 29 de Agosto de 2008 El proveedor de electricidad Electroquil SA fue otorgado US$ 5.578.566 más intereses producto de varias violaciones de contratos de compraventa de energía eléctrica (en inglés, PPAs) respaldados por el gobierno de Ecuador. Si bien Ecuador también fue encontrado culpable por haber infringido el tratado bilateral de inversiones […]

ITN  |  septiembre 22, 2008

Se garantiza estabilidad impositiva a inversores extranjeros en Perú

Por Elizabeth Whitsitt 29 de Agosto de 2008 En uno de los dos laudos dictados por el CIADI en agosto donde la firma estadounidense Duke Energy se encuentra involucrada, un tribunal declaró culpable a la República de Perú frente a Duke Energy International Peru Investments No. 1 Ltd. (DEI Bermuda) por daños que alcanzan los […]

Laudos  |  septiembre 22, 2008

Occidental Petroleum Corporation and Occidental Exploration and Production Company v. the Republic of Ecuador: US oil company passes jurisdictional hurdle in arbitration with Ecuador

By Damon Vis-Dunbar 22 September 2008 A tribunal has accepted jurisdiction in a dispute that pits two petroleum companies against the Government of Ecuador, allowing the case to proceed to the merits stage. The two claimants, Occidental Petroleum Company (OPC) and Occidental Exploration and Production Company (OEPC), are seeking more than US$ 3 billion after […]

Laudos  |  septiembre 10, 2008

Continental Casualty Company v. the Argentine Republic: Argentina emerges largely victorious in dispute related to country’s financial crisis

By Damon Vis-Dunbar September 10, 2008 In an award rendered on September 5, 2008, an arbitral tribunal has dismissed all but one of the claims brought by an American investor, Continental Casualty, against the government of Argentina. Argentina was found liable for damages of US$ 2.8 million plus interest: a fraction of the US$ 112 […]

ITN  |  agosto 29, 2008

Ecuador threatens cancellation of oil contracts unless ICSID nixed as arbitration forum

By Fernando Cabrera Diaz 29 August, 2008 The Ecuadorian government will consider contracts with oil companies terminated unless they remove the International Centre for Settlement of Investment Dispute (ICSID) as the venue of arbitration. The threat comes as the Andean nation considers domestic legal reforms which would make it unconstitutional for the country to be […]

Laudos  |  agosto 29, 2008

Duke Energy International Peru Investments No. 1 Ltd. v. Republic of Peru: Foreign investors in Peru are guaranteed tax stability

By Elizabeth Whitsitt 29 August 2008 In one of two ICSID awards handed down in August involving the US firm Duke Energy, a Tribunal has found the Republic of Peru liable to Duke Energy International Peru Investments No. 1 Ltd. (DEI Bermuda) for damages totaling US$ 18,440,746 plus interest after the SUNAT, Peru’s National Tax […]

Laudos  |  agosto 29, 2008

Duke Energy Electroquil Partners and Electroquil SA v Ecuador: Ecuador found liable for breaches of power purchase agreements and investment treaty

By Damon Vis-Dunbar 29 August 2008 The electricity provider Electroquil SA has been awarded US$ 5,578,566 plus interest stemming from several breaches of power purchase agreements (PPAs) backed by the government of Ecuador. While Ecuador was also found to have breached the Ecuador-US bilateral investment treaty, those violations did not result in additional monetary damages. […]

ITN  |  agosto 13, 2008

News in Brief: Tribunal declines jurisdiction in African Holding Company of America, INC et Société Africaine de construction au Congo SARL (SAFRICA) v. République Démocratique du Congo

By Suzy H. Nikièma 13 August 2008 An ICSID tribunal has declined jurisdiction in a dispute over a failed construction contract between the Democratic Republic of Congo (DRC) and two U.S. investors. Two members of the three-person tribunal held that the dispute began when the investment was under the control of a Belgium company, therefore […]

ITN  |  agosto 11, 2008

TDM Call for Papers: The Notion of Investment – In Search of an Acceptable Definition

Transnational Dispute Management (TDM) is announcing a special issue dedicated to the notion of investment. The theme of the issue is: “The notion of investment: in search of an acceptable definition“. Contributions are invited from prospected authors with unpublished or previously published articles, conference papers, research papers, case studies. The recent arbitration awards where the […]

ITN  |  agosto 6, 2008

South American alternative to ICSID in the works as governments create an energy treaty

By Fernando Cabrera Diaz 6 August 2008 A  July 16-17 meeting of the Bolivarian Alternative for the Americas (comprised of Bolivia, Cuba, Dominica, Nicaragua, and Venezuela)* ended without public mention of the International Centre for Settlement of Investment Disputes (ICSID), the World Bank agency that administers investor-state arbitrations. Nonetheless, the bloc’s push for a regional […]

ITN  |  julio 25, 2008

News: Trans-Global Petroleum Inc. v. Hashemite Kingdom of Jordan: First Application of ICSID Arbitration Rule 41(5)

By Elizabeth Whitsitt 25 July 2008 Tribunal considers whether a claim by an U.S. investor against Jordon is “manifestly without legal merit”, and rejects all but one of Jordan’s objections An ICSID tribunal has ruled on whether to uphold objections filed by the Hashemite Kingdom of Jordan pursuant to Rule 41(5) of the ICSID Arbitration […]

ITN  |  julio 10, 2008

Decrying past “contradictory” rulings, Argentina challenges arbitrator, By Luke Eric Peterson

Among the grounds upon which Argentina is seeking to vacate a $185+ Million arbitration award in favour of British Gas (see previous item) is one which criticizes the International Chamber of Commerce for failing to disqualify one of the three arbitrators presiding in the BG v. Argentina arbitration. Argentina had moved in June of 2007 […]