issue #07, week 19. 09 May 2007
Prepared by TDM and Aloysius Gng (CEPMLP/Dundee)

TDM News Digest

provides a condensed overview of recent events of interest to the international arbitration community.

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NEWS

ICSID: Enron Corporation and Ponderosa Assets, L.P. v. Argentine Republic (Case No. ARB/01/3)

Status of Proceeding: Pending (the Tribunal declares the proceedings closed in accordance with ICSID Arbitration Rule 38(1) on March 22, 2007)

Azeri Government answers Barmek's claims

25 April 2007, http://www.today.az/news/business/39978.html

The Government of Azerbaijan has sent answers to the Washington-based International Centre for Settlement of Investment Disputes (ICSID) for Barmek Azerbaijan Electricity Networks' arbitration request against it.

BD Discloses Notice of Arbitration and Dispute Resolution Proceedings

April 25, http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/04-25-2007/0004573172&EDATE=

BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, has been informed by bioMerieux SA that bioMerieux is initiating an arbitration proceeding with the ICC International Court of Arbitration in Paris against GeneOhm Sciences Canada, a subsidiary of BD. According to the letter, bioMerieux seeks in the arbitration proceeding to terminate a sublicense agreement under which it granted certain patent rights to the subsidiary. The patent rights relate to a method for the detection of methicillin-resistant Staphylococcus aureus (MSRA). Although BD has not yet received the pleadings in this matter, BD believes that there is no basis to terminate the sublicense agreement, and GeneOhm Sciences Canada intends to vigorously defend its position in the arbitration proceedings.

Separately, BD received a letter from bioMerieux invoking the dispute resolution clause of a separate license agreement between BD and bioMerieux, under which bioMerieux grants patent rights to BD for certain licensed fields relating to BD's BACTEC(TM) products. In the letter, bioMerieux alleges that sales of BD's BACTEC(TM) products have been made in non-licensed fields and that such sales constitute a material breach of the license agreement. bioMerieux requests compensation for any non-licensed sales, as well as cessation of all future sales in non-licensed fields. BD believes there has been no material breach of the agreement and intends to follow the dispute resolution provisions to resolve the matter, while vigorously defending its position with respect to the alleged breach.

Qatar: Sphere Petroleum becomes first fully foreign-owned firm in Qatar

4/24/2007, The Peninsula, http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=
Local+Business&month=April2007&file=Business_News2007042421327.xml

DOHA - Sphere Petroleum QSC has become the first 100 per cent foreign-owned company in Qatar, its officials announced yesterday. With a QR100m capital, the company said it has set foot here taking advantage of a new and liberal foreign investment law.

…

Bulgaria Discusses Its Investment Conditions

23 April 2007, http://www.novinite.com/view_news.php?id=79670

Bulgaria's Economic Minister Rumen Ovcharov is to take part in a second round table of the certified investors in Sofia on Monday. The meeting has been organized by Bulgaria's Investment Agency. The topic discussed will be connected to the investment climate in the country and the influence of the EU membership on it. The participants will also debate the pros and cons of the investment law.

Thailand to weigh new foreign business ownership rules

April 22, International Herald Tribune, http://www.iht.com/articles/2007/04/22/news/baht.php

Thailand's military-appointed legislature will debate this week proposed changes to foreign business ownership rules that are still making foreign firms nervous despite government efforts to soothe their fears.

Business chiefs fear foreign companies will be driven away by the new rules, which emanate from the furor generated by the takeover of Shin Corp., the telecommunications giant founded by the former prime minister, Thaksin Shinawatra, by Temasek, the Singapore government investment firm.

At the least, the changes could stifle foreign investment in the export-dependent economy, business executives said.

…

CIArb responds to US Securities & Exchange Commission’s arbitration proposal

http://www.arbitrators.org/Institute/PR_CIA024.asp

Proposal would allow companies to compel aggrieved shareholders to submit disputes to arbitration

The Chartered Institute of Arbitrators (CIArb), the international organisation of excellence for private dispute resolution, welcomes the initiative of the US Securities and Exchange Commission currently under review to allow companies to compel aggrieved shareholders to submit their disputes to resolution by arbitration rather than by litigation in the courts, but believes for it to be successful, many aspects of the proposal will need to be worked out before implementation.

The relationship between a company and its shareholders is governed by its corporate bylaws. All companies, with the present exception of publicly held ones, may include an arbitration provision in their bylaws and compel disputes to be resolved by that method. Publicly held companies are restricted from including an arbitration clause in their bylaws by federal securities laws. The restriction serves primarily to allow shareholders unfettered rights in addressing their grievances and in doing so it facilitates class action litigation and allows cases to be presented to a jury, where the potential for punitive damages is greatest. Two forces come together at this time to commend the current proposal – tort reform and increasing federal and state support for dispute resolution by arbitration.

Indonesia: NGOs to seek court review of Investment Law

April 19, http://www.thejakartapost.com/detailheadlines.asp?fileid=20070419.B07&irec=6

A legal aid institution and a number of non-governmental organizations are to challenge the constitutionality of the recently enacted Investment Law, which they claim will prejudice the interests of the people.

"We will ask the Constitutional Court to review five articles of the neo-liberal Law No. 1/2007 on Investment," Indonesian Legal Aid Institute Foundation (YLBHI) chairman Patra M. Zen said Wednesday during a public discussion on the new legislation at the headquarters of the Institute for Global Justice, a Jakarta NGO.

…

According to Patra, the five articles to be challenged are article 1, which allows foreign investors to set up 100 percent self-owned companies; article 8, which allows foreign investors to repatriate their profits; article 12, which increases the number of sectors in which foreign investors can operate; article 15 on the responsibilities of investors; and article 19 (in conjunction with article 22), which permits foreign investors to use land for up to 95 years.

…

foreign investors should not be allowed to operate in areas that directly affected the livelihoods of the majority of the people, such as those related to telecommunications services, electricity and drinking-water supplies.

The 1967 Foreign Investment Law restricted non-nationals from investing in sectors such as telecommunications, nuclear energy, drinking water and electricity as they were crucial to the people's livelihoods, he said.

…

Ecuador says won't extend U.S. investment treaty

May 6, http://www.reuters.com/article/politicsNews/idUSN0626423520070507

Ecuador will not extend an investment treaty with the United States that expires later this week, Foreign Affairs Minister Maria Espinosa said on Sunday. "This treaty has caused our country a lot of problems," Espinosa told Ecuadorian television. "We think that this treaty doesn't represent our national interests."

The treaty, signed in 1993, aims to protect investment in both countries and forbids the expropriation or nationalization of investment without proper compensation.

Los Angeles-based Occidental Petroleum has used the treaty for support in an arbitration claim filed against Ecuador for terminating its contract last year…

Ecuador: U.S. Arbitration Court to look into Occidental Ecuador case

http://www.marketwatch.com/news/story/us-arbitration-court-look-occidental/
story.aspx?guid=%7BAED54FCB-06C9-46F8-A1E4-4CC091CED085%7D

The International Centre for Settlement of Investment Disputes is considering whether to act on behalf of Occidental Petroleum Corp.  The ICSID, a division of the World Bank, based in Washington, held hearings Wednesday and Thursday on Occidental's request for arbitration in the dispute, and plans to schedule subsequent hearings to give Ecuador an opportunity to argue against the company's request.

Ecuador contends the ICSID isn't the appropriate forum for arbitrating the dispute, as Occidental agreed when first contracting with Ecuador to abide by the country's local laws. Occidental, however, contends an international investment protection treaty signed between the U.S. and Ecuador supersedes the Andean country's local…

The dispute arose in May 2006, when Ecuadorean President Alfredo Palacio revoked Occidental's contract to operate in the country, allegedly in response to several contract violations, including an allegedly unauthorized share transaction with Canada's EnCana Corp ..

Venezuela: Chavez plans to sell off oil refineries in US

May 2, http://timesofindia.indiatimes.com/World/Rest_of_World/Chavez_plans_to_sell_off_oil_refineries_in_US/
articleshow/1986120.cms

Venezuelan president Hugo Chavez said his country hopes to gradually sell off its refineries in the US and build a new network of refineries in Latin America as part of his plan to offer allies in the region a stable oil supply.

Chavez also raised the idea of issuing a regional bond to raise funds for social spending as he hosted a summit of the Bolivarian Alternative for the Americas, or ALBA, a leftist bloc and trade group that includes Venezuela, Cuba, Bolivia and Nicaragua. “I proposed that we issue an ALBA bond. I hope that we can do it. And that we issue it here in Venezuela, like we did with Argentina, and bring in $1 billion,’’ said Chavez…

Bangladesh: Energy Div to continue battle against Chevron on gas-wheeling charge

http://paguntaka.org/2007/05/02/oil-gas-energy-div-to-continue-battle-against-chevron-on-gas-wheeling-charge/

Despite persuasion by the US mission in Dhaka, the Energy Division is determined to continue its battle in the local court to settle the dispute with US company Chevron Bangladesh over its Jalalabad and two other gas fields concerning wheeling charge, reports UNB.

“We want to settle the issue in the court… the law will take its own course,” Energy Secretary AMM Nasir Uddin told UNB Sunday, expressing his reluctance to speak on the issue as he thought it to be a subjudice matter.

According to official sources, Chevron lodged an arbitration suit with the International Centre for Settlement of Investment Disputes (ICSID) following a dispute over the wheeling charge for Jalalabad gas field. The US company claimed a 4 percent payback from which Petrobangla has been deducting…

Bolivia's Morales marks nationalization anniversary with push for further state control

http://www.iht.com/articles/ap/2007/05/01/america/LA-GEN-Bolivia-May-Day-Nationalization.php

LA PAZ, Bolivia: President Evo Morales marked the first anniversary of Bolivia's petroleum nationalization by vowing to wrest still greater control of the Andean nation's economy from foreign companies.

At May Day festivities Tuesday in La Paz, Morales threatened to seize Bolivian holdings of Italy's Telecom Italia and Brazilian state energy company Petrobras should nationalization talks with the two companies fail. "We will back all our negotiations with dialogue, because we indigenous people believe in the principle of dialogue," Morales said, speaking to a cheering crowd from the flag-draped balcony of the presidential palace.

"But if dialogue doesn't work, we will recover our natural resources and our businesses without fear."

Morales has ordered Telecom Italia SpA to return its Bolivian subsidiary Entel, Bolivia's former state-run telephone company, to government hands. He also seeks to buy back Bolivia's only two oil refineries from Petroleo Brasileiro SA…

Australia: Launch of the Australian Maritime and Transport Arbitration Commission [pdf]

http://www.acica.org.au/downloads/Att-Gen%20Press%20Release%2026%20April%202007.pdf

On Thursday 26 April 2007 Federal Attorney-General Philip Ruddock officially launched the Australian Maritime and Transport Arbitration Commission (AMTAC).  Other speakers at the launch included the Hon Justice James Allsop of the Federal Court of Australia, Mr Peter McQueen, the convenor of the AMTAC steering committee and Professor Michael Pryles, President of ACICA.

AMTAC will capitalise on the skills and expertise of maritime lawyers, arbitrators, judges and scholars in Australia with the aim of making Australia an international leader in maritime and transport law.

CT-Mobile wins Stockholm Arbitration

http://www.freshfields.com/news/dynamic/Pressrelease.asp?newsitem=1180

In a final award dated 30 April 2007, an arbitration tribunal in Stockholm has ruled in favour of Russian company OAO "CT-Mobile" in respect of a claim against CT‑Mobile and others by IPOC International Growth Fund Limited (IPOC).  The claim related to a 25.1 per cent stake owned by CT‑Mobile in MegaFon, Russia's third‑largest mobile phone operator, and valued in excess of US$2.5bn.

The three-member Tribunal was chaired by V.V. Veeder Esq, together with Me Yves Derains and DDr Werner Melis.

CT-Mobile was represented by Nigel Rawding and Daniel Kalderimis of Freshfields Bruckhaus Deringer (London), and Hans Bagner of Vinge (Stockholm). IPOC was represented by Nicolas Ulmer and Ricardo Ugarte of Winston & Strawn (Geneva), and Bo Nilsson of RydinCarlsten (Stockholm)…

Clydes follows BLG, Links, Lovells with LLP conversion

http://www.thelawyer.com/cgi-bin/item.cgi?id=125506&d=122&h=24&f=46

Clyde & Co will join the flurry of law firms converting to LLP status tomorrow (1 May), The Lawyer can reveal. The move, which the law firm has been preparing for over the past 12 months, comes after Clydes' partnership took a formal vote at its partner conference in March.

DIAC: Dubai Chamber hosts a seminar on 'International Effect of Arbitral Awards'

http://www.ameinfo.com/118458.html

Dubai Chamber of Commerce & Industry Monday hosted a seminar on the 'International Effect of Arbitral Awards' which was organized by Dubai International Arbitration Center (DIAC), in cooperation with the International Council for Commercial Arbitration (ICCA)…

EVENTS

10th AFIA Symposium in Melbourne - May 11

On 11 May 2007 the Australasian Forum for International Arbitration (AFIA) is holding a symposium on international arbitration in Melbourne.  The symposium will be held at the premises of Clayton Utz from 1:30 pm to 5 pm.  It will be conducted in an informal atmosphere and is intended to encourage participation from all participants, irrespective of their level of knowledge or experience in international arbitration.

The invitation and registration form can be found http://www.acica.org.au/downloads/10th%20AFIA%20Symposium%20Invitation.pdf [pdf]

AIJA: Seminar Introduction to Arbitration will take place in Helsinki on 7-9 June 2007

http://www.aija.org/modules/events/index.php?id=178

AIJA is proud to invite you to Helsinki to take part in the first ever AIJA seminar weekend - two seminars at the same time. The seminar Introduction to Arbitration has with success previously been held in Stockholm in 2001 and Milan in 2003.

The seminar aims at introducing young lawyers to arbitration and providing young arbitration practitioners an opportunity to establish and/or further develop relationships with colleagues from other fi rms and countries.

The two seminars Introduction to Arbitration and Environmental Law and Real Estate Transactions - What’s New? are organised simultaneously at the same venue and enjoy shared lunches, coffee breaks and social programme, thus giving the participants the opportunity to meet and share thoughts with an even larger number of colleagues than during an ordinary seminar. You can also benefit from the double scientific programme by without extra cost dropping in and listening to the other seminar once you have registered with one.

ICC arbitration workshop in US - June 10-12

http://www.iccwbo.org/events/display12/index.html?CodeICMS=S0706

A first-ever US ICC arbitration workshop will take place in San Francisco on 10-12 June. This hands-on event will offer expert guidance on drafting documents in ICC proceedings as well the opportunity to follow a mock case, step-by-step. Numbers are limited to optimize the benefit for participants.

Australia: Diploma in International Commercial Arbitration between 25 June and 6 July 2007 [pdf]

http://www.acica.org.au/downloads/2007%20Course%20Brochure.pdf

The Australian Branch of the Chartered Institute of Arbitrators in conjunction with the University of New South Wales is conducting the second Diploma Course in International Arbitration between 25 June and 6 July 2007.

This intensive course in International Commercial Arbitration is offered over two weeks at post graduate level.  Participants will be taught the practice of international commercial arbitration, including all major forms of arbitration and related dispute settling mechanisms such as WIPO and WTO. Participants will gain the ability to appear in or act as an arbitrator in such arbitrations in different contexts.

Short overview of upcoming events

The above information is reproduced from the International Arbitration Planner by kind permission of Lovells (www.lovells.com and www.lovells.com/arbitration). More details on these and many other events can be found at www.arbitrationevents.com

MOVES / JOBS

Dr. Christoph Hauschka joinsLuther Rechtsanwaltsgesellschaft mbH

Dr. Christoph Hauschka of the German construction firm Ed. Züblin AG joined Luther lawfirm on 1 May 2007 as a partner. Christoph Hauschka was chief legal counsel of Züblin and responsible for two ICSID proceedings as well as numerous ICC cases in which that company was involved. With this move, Luther strenghtens its existing -significant- capabilities in the field of international and investment treaty arbitration.

Joe Tirado to head up Norton Rose's international arbitration practice

http://www.thelawyer.com/cgi-bin/item.cgi?id=125671&d=122&h=24&f=46

Norton Rose has Joseph Tirado to head its international arbitration practice to plug the hole left when the firm's former global head of dispute resolution Peter Rees jumped ship.

Norton Rose announces partnership promotions for Steve Abraham, Marie Kelly and Yke Lennartz

http://www.nortonrose.com/news/viewrelease.asp?pressid=1764&ref=968

International legal practice Norton Rose is promoting 23 associates to the partnership. The new promotions take effect from 1 May 2007.

Norton Rose's chief executive Peter Martyr said:

"We are pleased to be making up 23 new partners this year. The large number of promotions is a reflection of the strength of our business and the roles we are continuing to develop for our senior associates. Twelve of the promotions are in our international offices, a real demonstration of the firm's excellent international growth."

There will be ten new partners in banking, six in corporate finance, three in dispute resolution, two in competition, one in tax and one in employee benefits. The promotions will create eleven new partners in London, three in Dubai, two in Amsterdam, two in Singapore and one in Munich, Hong Kong, Athens, Paris and Brussels. The firm has also appointed 18 new lateral partners over the 06/07 financial year making for a total of 41 new partners in the last 12 months. 

Dispute resolution

Steve Abraham (London); Steve is a dispute resolution lawyer who specialises in contentious construction and engineering-related work and he has worked on high profile disputes involving the thermal and wind power generation.

Marie Kelly (Athens); Marie advises on a wide range of shipping disputes as well as general litigation.

Yke Lennartz (Amsterdam); Yke specialises in dispute resolution in corporate, banking and energy matters. 

Henrik Bielenstein to join Bird & Bird international dispute resolution team

http://www.twobirds.com/English/pressreleases/Bielenstein_Swedish_Hire.cfm

International law firm Bird & Bird has recruited one of Sweden’s leading litigators, Henrik Bielenstein to expand the firm’s dispute resolution capabilities in Sweden. Henrik will also play a key role in the growth of the firm’s international dispute resolution group following recent key hires in other offices across the firm’s network.

JAMS: Hon. Dickran Tevrizian (Ret.) Joins JAMS

April 23, 2007, http://www.jamsadr.com/press/show_release.asp?id=266

Hon. Dickran Tevrizian, retired U.S. District Court Judge for the Central District of California, has joined JAMS, The Resolution Experts, the nation’s largest private provider of alternative dispute resolution services. Judge Tevrizian will be based in Southern California and will resolve disputes worldwide.

"Judge Tevrizian has been a preeminent federal district court judge for the last 21 years. He is highly respected and well known for his exceptional skill in resolving the most difficult cases,” said Steve Price, JAMS President and CEO. “We are thrilled to welcome Judge Tevrizian to our panel of resolution experts.”

…