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LexisNexis® Mealey's™ International Arbitration Legal News
Headline International Arbitration Legal News from LexisNexis®
ICSID Refuses To Award $422M In Damages Related To Newspaper Seizure
WASHINGTON, D.C. - A tribunal appointed in a second arbitration involving claims asserted against the Republic of Chile in relation to the military seizure of a newspaper in the 1970s released an award on Sept. 14 in which it found that the former owner of the newspaper was not entitled to more than $422 million in damages and dismissed all claims (Victor Pey Casado and Foundation Presidente Allende v. Republic of Chile, No. ARB/98/2, ICSID).
PCA Says It Will Hear Vessel Seizure Case Between Malta And Sao Tome
THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on Sept. 12 released its award in an arbitration commenced by Malta against the Republic of Sao Tome of in relation to the seizure of a vessel, finding that it has jurisdiction over the case and that Malta is entitled to some reparation for certain penalties imposed by Sao Tome that were not warranted (The Duzgit Integrity Arbitration [Malta v. Sao Tome and Principe], No. 2014-07, PCA).
10th Circuit Will Not Rehear Appeal Of Order Rejecting $1.6 Million Award
DENVER - The 10th Circuit U.S. Court of Appeals on Aug. 31 refused to rehear a Chinese company's appeal of a decision to dismiss its petition to confirm an arbitral award that was issued in its favor, denying its petition for rehearing en banc (CEEG [Shanghai] Solar Science & Technology Co., Ltd. v. Lumos Solar LLC, No. 15-1256, 10th Cir.).
ICSID Partially Grants Kenya's Request For Discovery In BIT Arbitration
WASHINGTON, D.C. - A tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on Sept. 12 released an order in an arbitration commenced by mining entities against the Republic of Kenya, partially granting Kenya's request for production of documents in the case (Cortec Mining Kenya Limited, Cortec [Pty] Limited and Stirling Capital Limited v. Republic of Kenya, ICSID Case No. ARB/15/29).
11th Circuit Finds Seaman's Claims Must Be Arbitrated Under Contract
MIAMI - After finding that a cruise line worker's employment contract envisioned performance abroad because he worked on international waters, the 11th Circuit U.S. Court of Appeals on Aug. 29 affirmed a decision finding that an arbitration clause was enforceable under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Francis D'Cruz v. NCL [Bahamas] Ltd., et al., No. 15-11766, 11th Cir.; 2016 U.S. App. LEXIS 15932).
ICSID Holds Hearing In Mining-Related Dispute Filed Against Romania
WASHINGTON, D.C. - The International Centre for Settlement of Investment Disputes (ICSID) on Sept. 12 announced that a hearing on provisional measures in an arbitration commenced by a Canadian resource company against Romania has been scheduled (Gabriel Resources Ltd. and Gabriel Resources (Jersey) v. Romania (ICSID Case No. ARB/15/31).
ITLOS Holds Hearing On Italy's Objections To Tribunal's Jurisdiction
HAMBURG, Germany - The International Tribunal for the Law of the Sea (ITLOS) on Sept. 12 announced that it held a hearing on Italy's objections to its jurisdiction over a case filed by Panama in relation to the allegedly unlawful detention of a vessel that supplied gasoil to yachts (The MV "Norstar" Case [Panama v. Italy], No. 25, ITLOS).
PCA Holds 1st Session In Maritime Boundary Dispute Commenced By Timor-Leste
THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on Aug. 31 said that it held the opening session in a maritime boundary conciliation between the Democratic Republic of Timor-Leste and the Commonwealth of Australia, during which the parties made submissions on the background of the dispute (Arbitration under the Timor Sea Treaty [Timor-Leste v. Australia], No. 2013-16, PCA).
Federal Judge Finds Removal Under Convention Is Not Proper, Remands
SAN JUAN, Puerto Rico - A federal judge in Puerto Rico on Sept. 19 granted a motion to remand claims for damages related to the alleged impairment of an exclusive distribution agreement, finding that a company validly pleaded a tortious interference claim and that the court could not exercise federal question jurisdiction under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Air-Con Inc. v. Daikin Applied Latin America LLC, et al., No. 15-2683, D. Puerto Rico; 2016 U.S. Dist. LEXIS 128863).
ICDR Awards Firm Costs Incurred In Mexican Litigation Over Arbitrability
VANCOUVER, British Columbia - A Canadian mining firm on Aug. 31 announced in a news release that an arbitrator has issued an award in its favor, ordering a Texas entity and its Mexican affiliate to pay it $468,726.92 in costs and expenses that were incurred while challenging the arbitrability of a dispute in Mexico (Goldgroup Mining Inc. v. Dyna USA Inc., et al., No. No. 50-20-1400-0226, ICDR).
Swedish Court Rejects Appeal Of Tribunal's Award Ordering Costs
STOCKHOLM, Sweden - A Swedish appeals court on Aug. 25 rejected a company's appeal of an award ordering the company to pay the arbitration costs of a tribunal, litigation costs and interest (AFO Entreprenader AB in bankruptcy v. Infratek Sverige AB, No. 391-16, Svea App.).
Guyana Files Amicus Brief In High Court, Requests Ruling For Belize
WASHINGTON, D.C. - The government of Guyana on Aug. 26 filed an amicus curiae brief with the U.S. Supreme Court, arguing that confirmation of a $20,106,100 arbitral award issued in favor of two companies will have harmful consequences to the Caribbean Court of Justice (CCJ) and to international comity (Government of Belize v. BCB Holdings Limited, et al., No. 16-136, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 3163).
ICSID Finds Cyprus Company Is Not Investor Under BIT, Dismisses Claims
PARIS - After finding that a Cyprus company was not an investor under the terms of a bilateral investment treaty, a tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on Aug. 2 released an award, finding that it lacked jurisdiction over an arbitration commenced against Montenegro in relation to its investment in an aluminum facility (CEAC Holdings Limited v. Montenegro, No. ARB/14/8, ICSID).
PCA Finds Poland Is Not Liable For Ministry's Actions, Dismisses BIT Claims
THE HAGUE, The Netherlands - A tribunal for the Permanent Court of Arbitration (PCA) on June 27 issued an award in an arbitration commenced by a group of investors in a large farm property against the Republic of Poland, finding that actions taken by a Polish ministry to terminate the lease could not be attributed to Poland (Mr. Kristian Almas and Mr. Geir Almas v. The Republic of Poland, No. 2015-13, PCA).
ICSID Awards Mining Firm $967 Million In Damages For Breach Of BIT
VANCOUVER, British Columbia - A Canadian mining company on Aug. 23 said an international arbitral tribunal has found that Venezuela breached its obligations under a bilateral investment treaty and has awarded it $967.77 million in damages, plus $1.3 billion in interest.
2nd Circuit Affirms $400M Award, Disregards Annulment By Mexican Court
NEW YORK - Despite an annulment ruling in a Mexican court, the Second Circuit U.S. Court of Appeals on Aug. 2 affirmed a district court's decision to confirm a $400 million award issued in favor of a Mexican corporation in a dispute over underlying contracts for the construction of offshore platforms (Corporacion Mexicana De Mantenimiento Intergral, S. De R.L. De C.V. v. Pemex-Exploracion Y, No. 13-4022, 2nd Cir.).
Federal Judge Confirms Arbitral Award For Trinidad And Tobago
MIAMI - After finding that a Barbados entity's due process rights were not violated during an arbitration, a Florida federal judge on Aug. 12 granted a request by the government of the Republic of Trinidad and Tobago (GORTT) to confirm an arbitration award that was issued in its favor in a dispute over the construction of an aluminum smelter (Sural [Barbados] Ltd. v. The Government of the Republic of Trinidad and Tobago through its Minister of Finance as Corporation Sole, No. 1:15-cv-22825, S.D. Fla.; 2016 U.S. Dist. LEXIS 107041).
ICSID Denies Venezuela's 6th Challenge To Arbitrator In Treaty Dispute
WASHINGTON, D.C. - After finding that Venezuela submitted no new information in its sixth proposal to disqualify and arbitrator, two members of a tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on July 26 denied its request to disqualify the arbitrator in the case (ConocoPhillips Petrozuata B.V., et al. v. Bolivarian Republic of Venezuela, No. ARB/07/30, ICSID).
11th Circuit Finds Seaman's Claims Against Royal Caribbean Must Be Arbitrated
ATLANTA - The 11th Circuit U.S. Court of Appeals on Aug. 22 found that a cruise line worker's claims related to an alleged injury while working on a vessel must be arbitrated under his employment contract and affirmed a decision granting the employer's motion to compel (Robert M. Alberts v. Royal Caribbean Cruises Ltd., No. 15-14775, 11th Cir.; 2016 U.S. App. LEXIS 15502).
Lao Holdings Files Amended Request For Arbitration With ICSID Against Laos
WASHINGTON, D.C. - Lao Holdings N.V. on Aug. 3 announced that it has filed an amended request for arbitration with the International Centre for Settlement of Investment Disputes (ICSID), seeking damages from the government of Laos in relation to alleged breaches of a 2014 settlement agreement that resolved a dispute over an investment in the Laos gaming industry.
PCA Says Russia Did Not Participate In Hearing In Petrol Station Seizure Case
THE HAGUE, Netherlands - A tribunal for the Permanent Court of Arbitration (PCA) on Aug. 3 issued a statement giving various updates in two arbitrations commenced against the Russian Federation, noting that a hearing on jurisdiction has been held and that Russia did not participate in the hearing (PJSC Ukrnafta v. the Russian Federation, No. 2015-34, PCA; [i] Stabil LLC, [ii] Rubenor LLC, [iii] Rustel LLC, [iv] Novel-Estate LLC, [v] PII Kirovograd-Nafta LLC, [vi] Crimea-Petrol LLC, [vii] Pirsan LLC, [viii] Trade-Trust LLC, [ix] Elefteria LLC, [x] VKF Satek LLC, [xi] Stemv Group LLC v. The Russian Federation, No. 2015-35, PCA).
PCA Holds Hearing On Jurisdiction In UNCITRAL Case Filed Against Russia
THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on Aug. 15 provided an update in an arbitration commenced by a bank and finance company pursuant to the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules against the Russian Federation (PJSC CB PrivatBank, et al. v. Russian Federation, No. 2015-21, PCA).
PCA To Hold Hearing In Maritime Case Between Timor-Leste And Australia
THE HAGUE, Netherlands - A commission for the Permanent Court of Arbitration (PCA) on Aug. 22 said it will hold the opening session in a conciliation case filed by the Democratic Republic of Timor-Leste and the Commonwealth of Australia in relation to a maritime boundary dispute (Arbitration under the Timor Sea Treaty [Timor-Leste v. Australia], No. 2013-16, PCA).
Judge Requests Additional Submissions On Whether Removal Was Appropriate
CHARLESTON, W.Va. - A West Virginia federal judge on Aug. 22 gave two entities a chance to make further submissions as to whether removal of an action was appropriate and as to whether the claims related to an arbitration agreement that provides that all disputes be submitted to arbitration in South Africa (Shilmann Rocbit LLC v. American Blasting Consumables Inc., No. 2:16-cv-06745, S.D. W.Va.; 2016 U.S. Dist. LEXIS 111435).
Insurer: Prospective Intervenor Should Not Be Allowed Into Arbitration Suit
NEW YORK - An insurer filed its opposition to a motion to intervene in a reinsurance arbitration dispute in a federal court in New York on Aug. 23, arguing that granting the intervention would undermine the purpose of arbitrating instead of litigating the underlying claims (Certain Underwriting Members at Lloyd's, London Subscribing to Treaty No. 0272/04 v. Insurance Company of the Americas, No. 16-cv-00374, S.D. N.Y.).
London Market Reinsurers Ask Court To Deny Motion To Intervene
NEW YORK - A group of London market reinsurers on Aug. 23 told a federal court in New York that it should not allow the alleged owner of a reinsured to intervene in a reinsurance arbitration dispute because the motion to intervene is untimely (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).
Iran's World Court Case Against The United States May Impact Investment Arbitration
By Joshua M. Robbins On June 14, 2016, the Islamic Republic of Iran sued the United States of America in the International Court of Justice (also known as the "World Court" or the "ICJ") in the Hague, alleging that the U.S. government had violated a decades-old treaty by allowing victims of terrorism and their families to enforce U.S. court judgments against assets owned by the Iranian government and companies it owned. The ICJ may seem to be an exotic and esoteric institution whose decisions are not enforceable in U.S. courts and whose workings are of interest mainly to diplomats and academics. And at first glance, a dispute between Iran and the United States in that court regarding terrorism and sovereign immunity might only reinforce that impression. But this case may be different. The treaty terms at issue - and particularly the requirement that foreign companies receive "fair and equitable treatment" from the host government - are the same as those found in thousands of investment treaties signed by countries around the world. Those treaties allow companies to bring international arbitration claims to enforce their rights, and hundreds have done so, seeking and sometimes winning huge damage awards. If Iran's suit leads the ICJ, for the first time, to define the meaning of fair and equitable treatment under international law, its interpretation could be highly influential on future arbitrators, and it could affect both the rights of global companies and the outcomes of future disputes.
Overview Of The 2016 SIAC Rules
By Mark Mangan and Claire Chong The sixth edition of the arbitration rules of the Singapore International Arbitration Centre (SIAC) entered into force on 1 August 2016. To mark the occasion we provide this overview of the key features of the new rules. Speed read
PCA Finds China Breached UNCLOS, Issues Unanimous Award For The Philippines
THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on July 12 issued a unanimous award in favor of the Philippines and against the People's Republic of China in a dispute over maritime entitlements in the South China sea, finding that China violated the United Nations Convention on the Law of the Sea (UNCLOS) and aggravated the dispute with certain actions (The Republic of the Philippines v. The People's Republic of China, No. 2013-19, PCA).
PCA Finds Slovenia's Contact With Arbitrator Did Not Warrant Termination
THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on July 1 said it has issued a partial award in a maritime boundary dispute between the Republic of Croatia and the Republic of Slovenia, finding that contact between Slovenia and its originally appointed arbitrator did provide a basis for Croatia to terminate the underlying arbitration agreement (Republic of Croatia v. the Republic of Slovenia, No. 2012-04, PCA).
ICSID Dismisses Renco's Treaty Claims Against Peru For Lack Of Jurisdiction
PARIS - After determining that the Renco Group Inc. failed to establish that the Republic of Peru consented to arbitration under a treaty, a tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on July 19 released its award dismissing all of the group's claims against Peru for lack of jurisdiction (The Renco Group, Inc. v. Republic of Peru, No. [UNCT/13/1], ICSID).
ICSID Declares Its Exclusive Jurisdiction Over Cases Against Bangladesh
WASHINGTON, D.C. - A tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on July 20 released a declarative decision, stating that tribunals appointed in an investment dispute filed by a resource company against the People's Republic of Bangladesh and others have exclusive jurisdiction over the cases and that the respondents must take steps to make the Bangladesh courts aware of ICSID's jurisdiction over the case (Niko Resources [Bangladesh] Ltd. v. People's Republic of Bangladesh, et al., Nos. ARB/10/11 and ARB/10/18, ICSID).
10th Circuit Affirms Denial Of Petition To Confirm $1.6 Million Award
DENVER - The 10th Circuit U.S. Court of Appeals on July 19 affirmed dismissal of a Chinese company's petition to confirm an arbitral award issued in its favor, finding that the other party did not receive sufficient notice of the arbitration in China, rendering the arbitration invalid under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (CEEG [Shanghai] Solar Science & Technology Co., Ltd., No. 15-1256, 10th Cir.; 2016 U.S. App. LEXIS 13192).
Singapore Judge Sets Aside Award In Dispute Over Palm Oil Contracts
SINGAPORE - After finding that a tribunal based its award for a Singapore agricultural company on an issue that was never argued before it, a Singapore high court judge on July 13 granted a request filed by an Indian maker of edible oils to set aside an award issued against it (JVL Agro Industries Ltd. v. Agritrade International, No.  SGHC 126, Singapore High).
Judge Grants Leave To Amend Cause Of Action In Petition To Confirm
SAN JOSE, Calif. - A California federal judge on July 20 dismissed a petition to confirm an arbitral award, finding that the claimant invoked the wrong cause of action, but granted him leave to refile to properly invoke 9 U.S. Code Section 207 (Xiangkai Xu v. China Sunergy [US] Clean Tech Inc., et al., No. 15-cv-04823-HRL, N.D. Calif.; 2016 U.S. Dist. LEXIS 94906).
Cargill Seeks Dismissal Of Appeal Related To Mexico Resort Project
NEW YORK- Cargill Inc. on July 12 argued before the Second Circuit U.S. Court of Appeals that a district court's order granting is motion to dismiss claims asserted against it in relation to the construction and operation of a resort in Mexico should be affirmed in its entirety (Desarrolladora Farallon S. DE R.L. DE C.V. v. Cargill Inc., No. 15-4164, 2nd Cir.).
ICSID Establishes Procedures For Discovery Case Filed Against Costa Rica
WASHINGTON, D.C. - A tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on July 14 released its order in an arbitration commenced by a group of investors against the Republic of Costa Rica, establishing procedures for the production of documents in the case (David R. Aven, et al. v. The Republic of Costa Rica, No. UNCT/15/3, ICSID).
NeuIsys Argues North Carolina Court's Denial Of Stay Should Be Affirmed
WASHINGTON, D.C. - A distributor of medical imaging devices on July 8 filed its response to a petition for certiorari filed by a Chinese medical systems company, arguing that a trial court properly refused to stay the case pending the outcome of international arbitration in relation to a distribution agreement for medical imaging devices (Neusoft Medical System Company Ltd., et al. v. NeuIsys LLC, No. 15-1121, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 1091).
Judge Finds Case Was Properly Removed Under The Convention
LOS ANGELES - A California federal judge on June 28 denied an estate's motion to remand claims asserted in relation to a deceased seaman, finding that removal was appropriate under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Maren Miller v. Tri Marine Fish Company, et al., No. 16-02203, C.D. Calif.; 2016 U.S. Dist. LEXIS 83936).
Judge Refuses To Remand Case, Finds Arbitration Clause Could Provide Defense
DALLAS - After finding that it is possible that an arbitration clause falling under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards could provide a defense to claims asserted by two entities against former employees, a Texas federal judge on July 21 refused to remand the case to state court (Valtech Solutions Inc., et al. v. Deborah Davenport, et al., No. 3:15-CV-3361, N.D. Texas; 2016 U.S. Dist. LEXIS 95098).