issue #09, week 21. 24 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.

Comments, suggestions, news?

If you have news, comments or suggestions feel free to send them.

Archived issues

Transnational Dispute Management Linkedin, Twitter, Facebook



Follow us OGEL & TDM on twitter @ogeltdm



Notice 2021: New publication:

Transnational Arbitration Observer (News & Analysis)

Covering international dispute management, arbitration, mediation, investment disputes (ISDS), and more...

TAO Twitter, TAO Linkedin

Launched 2022: Transnational Arbitration Observer (TAO) - https://taobserver.com/ - is a source of daily news and analysis aimed at keeping its readership abreast of recent developments in transnational arbitration (investment & commercial arbitration, mediation, and so forth). It complements the existing Transnational Dispute Management (TDM, ISSN 1875-4120) law journal. Visit https://taobserver.com/ and register for the daily headlines (email) or follow TAO on social media twitter.com/taobserver and linkedin.com/company/taobserver/ Questions? Contact info@maris.nl.

TDM

Young-OGEMID virtual symposia

Young-OGEMID is a free listserv associated with our Transnational Dispute Management law journal for Students and (junior) Associates - you can apply for your free membership here: www.transnational-dispute-management.com/young-ogemid/

Call for contributions

Recent issues:

NEWS

Vietnam: Confusion reigns in application of enterprise, investment laws

VNECONOMY, May 24, http://www.vneconomy.com.vn/eng/?param=article&catid=03&id=a4d724b8d7d853

The Unified Enterprise Law and Common Investment Law - so styled because they place both foreign and domestic enterprises under the same regulatory scheme - have been in effect since July 1 of last year but still have not been properly implemented, according to participants in a workshop held yesterday in Ha Noi.

…

Nigeria: Arbitration Court Orders NNPC to Pay Lutin Investment $59.9m

May 21, http://allafrica.com/stories/200705210113.html

An Arbitration Court presided over by retired Supreme Court Justice Uche Omo has ruled that the Nigerian National Petroleum Corporation (NNPC) wrongly terminated the contract it had with a shipping company, Lutin Investment Limited, in 1992 and the company is entitled to damages which must be paid by the NNPC. The court has, therefore, awarded a sum of $59.9 million to be paid to Lutin Investment Limited by the corporation for loss of profits, reimbursable and wasted expenditures.

In an agreement dated December 23, 1992, Lutin Investment was to undertake the supply of vessels on a Volume Charter basis to serve as storage for clean and dirty petroleum products totaling one million metric tons for an initial period of three years commencing December 23, 1992 for use by the NNPC as a Strategic Tank Farm to supplement domestic supplies.

…

Russian lawyers speak out on $22.5bn Bank of New York case

May 18, http://www.thelawyer.com/cgi-bin/item.cgi?id=125892&d=11&h=24&f=23

Russian law firm Smal and Partners issued court proceedings for $22.5bn (£11.4bn) against the Bank of New York (BoNY) in relation to what has been dubbed "the case of the long-gone cash".

Smal and Partners filed the suit in the Moscow arbitration court on May 17th on behalf of the Russian Federal Customs Service (FCS), which claims that BoNY was involved in a money laundering case more than a decade ago.

…

India looks for key to Nafta in Mexico

http://economictimes.indiatimes.com/articleshow/2055656.cms

India is all set to sign a bilateral investment protection agreement (BIPA) with Mexico on May 21. This will be first such agreement with a member of the North American Free Trade Agreement (Nafta). Other Nafta members are the US and Canada. The agreement is expected to be signed by finance minister P Chidambaram and visiting Mexican finance minister M Eduardo Sojo Garza-Aldape in New Delhi, sources in the government said. It is expected the Cabinet may give its nod to the agreement on Thursday.

…

With proximity to the US, the joint ventures would enable Indian companies to increase their presence in the US, the country's largest trading partner. It's here the benefits enshrined under Safta would help Indian investors.

Malaysia: MAS faces arbitration on claims by Maldives Air

http://www.theedgedaily.com/cms/contentPrint.jsp?id=com.tms.cms.article.Article_94786bc8-
cb73c03a-9abce900-c76626b5&paging=0

Malaysian Airline System Bhd (MAS) is facing arbitration at the ICC International Court of Arbitration, Paris, after Air Maldives Ltd alleged that MAS had failed to perform its duties under a management agreement signed on Jan 16, 1996. In a statement on May 16, MAS said it had received a letter from the secretariat of the Court of Arbitration giving notice of the arbitration proceeding initiated by Air Maldives.

It said the notice referred to the memorandum of understanding dated July 29, 1994, between the government of Maldives and Malaysian Helicopter Services Bhd (MHSB), now known as Nalur Corp Bhd.

The notice also referred to the shareholders agreement dated Oct 1, 1994, between the government of Maldives and MHSB, and the management agreement between MAS and Maldives Air.

"MAS is taking legal advice to challenge the claim," the national carrier said in a statement to Bursa Malaysia. MAS said the notice did not specify the amounts claimed by Maldives Air.

Bolivia Rejects Arbitration of Investments

May 16, http://www.plenglish.com/Article.asp?ID=%7BF1E83259-36F2-4274-8070-0B4D5F4F5850%7D&language=EN

The Government of Bolivia ratified on Wednesday its leaving the international Center for Settlement of Investment Disputes (ICSID), an entity that, according to official sources, favors foreign business.

…

Bolivia Submits a Notice under Article 71 of the ICSID Convention

http://www.worldbank.org/icsid/highlights/05-16-07.htm

On May 2, 2007, the World Bank received a written notice of denunciation of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention) from the Republic of Bolivia.

Azerbaijan: ICSID to continue haring on Barmek's suit in July

May 21, http://www.today.az/news/business/41095.html

The court hearing on suit of Barmek-Azerbaijan Electricity Distribution was held on May 18 in the International Centre for Settlement of Investment Disputes (ICSID). Company's president Huseyn Arabul told the APA that as two of the judges were Europeans Azerbaijani government and Barmek agreed on holding the trial in London. Huseyn Arabul said he joined the process through video conference from World Bank Baku office.

…

Taiwan: Thales sees court ruling on Taiwan frigate deal by yr-end

May 21, http://www.forbes.com/business/feeds/afx/2007/05/21/afx3741296.html

Thales expects the international chamber of commerce's court of arbitration to make a decision about Taiwan's controversial 1991 purchase of six frigates from Thales' predecessor Thomson-CSF by the end of 2007, a Thales spokeswoman said.

…

In 2001, the Taiwanese government went to the court of arbitration seeking reimbursement of hundreds of millions of euros for the kickbacks.

…

British Columbia: New Rules of the Mediation and Arbitration Board of British Columbia - March 31, 2007

http://www.em.gov.bc.ca/subwebs/M&ABoard/

The purpose of these rules is to facilitate the just and timely resolution of applications filed with the Board under the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 210, as amended (the "PNGA"), Pipeline Act, R.S.B.C. 1996 c. 364. Mineral Tenure Act, R.S.B.C. 1996, c. 292, Mining Right of Way Act, R.S.B.C. 1996 c. 294 as amended, Geothermal Resources Act, R.S.B.C. 1996, c. 171 as amended, Coal Act, Stats. B.C., 2004, c. 15.

You can download a copy of the "Rules of the Mediation and Arbitration Board" at http://www.em.gov.bc.ca/subwebs/M&ABoard/

NAFTA Chapter 11 investor-state disputes

Table of all disputes and their status as of 1 March 2007, Compiled by Scott Sinclair, Trade and Investment Research Project Canadian Centre for Policy Alternatives.

Download the PDF at http://policyalternatives.ca/Reports/2007/04/ReportsStudies1601/index.cfm?pa=6104EA04 (Published April 03)

EVENTS

Conference report: Investment Protection and the Energy Charter Treaty

http://www.encharter.org/index.php?id=21&id_article=12&L=0

"The Energy Charter Treaty is a cornerstone of the international legal framework for the energy sector, and I welcome its contribution to achieving key objectives shared by the World Bank - strengthening the rule of law, securing reliable energy supply and encouraging the flows of trade and investment that can promote sustainable economic growth", said Ana Palacio, Secretary-General of the International Centre for Settlement of Investment Disputes and Senior Vice President of the World Bank Group, at the opening of a Conference on Investment Protection and the Energy Charter Treaty on 18 May in Washington, D.C.

…

ICDR: NAFTA Arbitration Experts Convening - June 12

North America is one of the largest trading regions in the world. Cross border transactions both big and small are constantly occurring. The multi-lateral investment treaty called NAFTA signed in 1994 celebrates the interaction of these three large economies. Since then, what have been the effects and changes respective to culture, advocacy and acceptability of dispute resolution? The International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association, is bringing together a number of the world's leading arbitrators, practitioners, scholars and judges to examine these and other questions concerning international commercial arbitration in North America.

For a complete English agenda to the June 12, Mexico City program, click here: http://www.adr.org/si.asp?id=4652 [pdf]

Summer Session on International Commercial Arbitration in Washington, DC, May 29-June 14

The International Arbitration Program at American University Washington College of Law, directed by Dr. Horacio Grigera-Naon, is offering a Summer Session on International Commercial Arbitration in Washington, DC, from May 29-June 14. This three-week intensive program is designed to provide practitioners critical skills training in international commercial arbitration as well as CLE credit.

The course offerings include: Nuts and Bolts of International Commercial Arbitration, Salient Issues in ICC Arbitration, International Commercial Arbitration and Choice-of-Law Issues, Investor-State Arbitration, How to Conduct an Arbitration Proceeding, and Arbitraje Comercial Internacional. (The last course will be offered in Spanish, at the request of colleagues in Latin America; those of you with increasing caseloads in Latin America may find this to be an attractive opportunity for exposing your attorneys to an arbitration context in Spanish.)

Faculty experts include:

  • Stanimir Alexandrov, Sidley Austin LLP;
  • Mark Becket, Latham & Watkins LLP;
  • Marinn Carlson, Sidley Austin LLP;
  • Claudia Frutos-Peterson, International Centre for Settlement of Investment Disputes;
  • Ronald Goodman, Winston & Strawn LLP;
  • Horacio Grigera Naón, American University Washington College of Law International Arbitration Program;
  • Jean Kalicki, Arnold & Porter LLP;
  • Louis Kimmelman, Allen & Overy LLP;
  • Julian Lew, 20 Essex Street;
  • Jennifer Haworth McCandless, Sidley Austin LLP;
  • Eloise Obadia, International Centre for Settlement of Investment Disputes;
  • David Orta, Arnold & Porter LLP;
  • Nancy Thevenin, Deputy Director, North America, ICC International Court of Arbitration; and
  • David Wagoner, International Arbitration Chambers.

    • The program is being offered at a special reduced rate for members of Cooperating Institutions, including the D.C. Bar's International Dispute Resolution Committee.

    For more information, please visit the International Arbitration Program website at http://www.wcl.american.edu/arbitration, or contact Susana Castiglione at 202-274-4321 or arbitration@wcl.american.edu.

    DC Bar's International Dispute Resolution Committee: A Conversation with Ana Palacio, Senior Vice President and Group General Counsel of the World Bank and Secretary-General of ICSID - June 25

    On June 25, the DC Bar's International Dispute Resolution Committee will be hosting a luncheon (12:30-2:00 p.m.) entitled "A Conversation with Ana Palacio, Senior Vice President and Group General Counsel of the World Bank and Secretary-General of ICSID." As many of you know, before taking up her World Bank duties in 2006, Ana Palacio served as Foreign Minister of Spain (2002-2004), holding the most senior post ever to have been filled by a woman in the Spanish Government, and as a member of the Spanish Parliament, where she chaired the Joint Committee of the two Houses for European Union Affairs (2004-2006). Earlier in her career, she spent eight years as a member of the European Parliament (1994-2002), where she chaired the Legal Affairs and Internal Market Committee and the Justice and Home Affairs Committee as well as the Conference of Committee Chairmen, the Parliament’s most senior body for the coordination of its legislative work. Ms. Palacio is deeply committed to empowering the poor to enable them to escape poverty, and prior to her current appointment, she worked (2005-2006) as a consultant for the World Bank reporting for the Presidency on the UN High Level Commission on the Legal Empowerment of the Poor. She will be discussing various recent developments at the World Bank and at ICSID.

    Cost:
    US$20.00 Section Members and Subscribers
    US$25.00 Non-Section Members
    US$10.00 Government and Nonprofit Employees
    US$ 5.00 Students

    For DC Bar program registration information, please contact the DC Bar Sections Office at 202-626-3463 or e-mail sections@dcbar.org.

    DC Bar's International Dispute Resolution Committee: International Investment Agreements and Natural Resources Disputes: The Case of Glamis Gold v. United States (NAFTA Ch. 11) - June 26

    On June 26, the DC Bar's International Dispute Resolution Committee will be cosponsoring with the Environment, Energy and Natural Resources Section of the D.C. Bar an afternoon program (4:00-6:00 p.m.) entitled "International Investment Agreements and Natural Resources Disputes: The Case of Glamis Gold v. United States (NAFTA Ch. 11)." This panel will examine the pending investor-state dispute under NAFTA Chapter 11, Glamis Gold v. United States, to explore the development of regulatory expropriation law in the hotly-contested and high-stakes arena of mining and natural resource protection. Canadian mining conglomerate, Glamis Gold, Ltd., brought a $50 million international arbitration claim under NAFTA against the United States alleging that certain measures of the United States and California destroyed the value of the open-pit gold mine Glamis had sought to pursue in the southern California desert.

    This controversial case has attracted amicus briefs from the mining industry, environmental NGOs, and Native Americans who claim that the mine threatens their ancestral lands. Glamis' regulatory expropriation claims are being vigorously defended by the United States, which contends that the case is testing the outer limits of expropriation law. Glamis and others argue that the case fits easily within the mainstream of regulatory takings law. The parties also clash on the standard for fair and equitable treatment.

    A hearing in the case will take place in late summer 2007. The panel, moderated by Margrete Stevens, King & Spalding (Former Senior Counsel, ICSID), will include presentations from lead counsel for both sides (Andrea Menaker, Chief of the NAFTA Arbitration Division, U.S. State Department, and Alan Gourley, Crowell & Moring) followed by comments from a panel of experts (Ethan Shenkman, WilmerHale, and Daniel Magraw, President, CIEL).

    For DC Bar program registration information, please contact the DC Bar Sections Office at 202-626-3463 or e-mail sections@dcbar.org.

    DC Bar International Dispute Resolution Committee: How Final an Award? Review and Annulment of International Arbitral Awards - July 23

    On July 23, DC Bar International Dispute Resolution Committee, has planned a luncheon program (12:30-2:00 p.m.) entitled "How Final an Award? Review and Annulment of International Arbitral Awards." Details of this program, including confirmed speakers and registration information, will follow.

    The Economics of Corruption - A University Training on Good Governance and Reform, October 7-13

    From October 7-13, 2007 the University of Passau offers the annual international program

    "The Economics of Corruption - A University Training on Good Governance and Reform."

    This international event continues to be offered on a pro bono basis. It joins the world of research with the world of practice, attracting graduate and post-graduate students in the social sciences and anti-corruption policymakers and practitioners. The program consists of training modules, lectures, workshop sessions, case studies, and poster and keynote presentations. For applications and the full program please visit:

    More information at http://www.icgg.org/

    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

    ICC International Court of Arbitration appoints of Jason Fry as new Secretary General

    May 21, http://www.iccwbo.org/iccbdeja/index.html

    The International Chamber of Commerce (ICC) today announced the appointment of Jason Fry to the position of Secretary General of the ICC International Court of Arbitration. Mr Fry has been a member of the ICC International Court of Arbitration for seven years, representing New Zealand, and will be joining the Secretariat of the Court full time in his new position. He has been a partner at the law firm of Clifford Chance in Paris since 1999.

    "International arbitration and ADR (Amicable Dispute Resolution) are the methods of choice for the resolution of international commercial disputes. The opportunity to take a leading role in one of the most prestigious dispute resolution organizations in the world and to be involved in the development and improvement of the international arbitration and ADR services for the benefit of the world's business community and governments is an exciting new challenge," Mr Fry said upon accepting the appointment.

    …

    Mr Fry succeeds Anne-Marie Whitesell, who will leave the ICC International Court of Arbitration in July after six years in the position to return to private practice. Mr Fry will officially assume his duties in October.

    Linklaters continues management overhaul

    May 18, http://www.thelawyer.com/cgi-bin/item.cgi?id=125891&d=11&h=24&f=23

    Linklaters' reshuffle continued with the announcement of new national heads for the litigation and arbitration practices for the UK and Belgium.

    …