issue #12, week 16. 15 April 2008
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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Recent issues:

NEWS

Stephenson Harwood seeks extra money for Petroleos de Venezuela

April 14, http://www.thelawyer.com/cgi-bin/item.cgi?id=132208&d=415&h=417&f=416

The US oil group is seeking billions in compensation from Venezuelan president Hugo Chavez's government following last year's nationalisation of a series of major energy projects in the Orinoco oil basin. Initially the projects ran in conjunction with non-Venezuelan companies. Chavez reached settlement with all the oil companies involved apart from Exxon, which was later granted a $12bn (£6bn) freezing order.

However, because Exxon "failed to surmount several legal hurdles" the Queen's Bench Division lifted the injunction, which would have blocked the sale and movement of PDVSA assets.

...

Experts: Exxon case has to be addressed in the ICSID

April 8, http://english.eluniversal.com/2008/04/08/en_eco_art_experts:-exxon-case_08A1501479.shtml

While it is a US company, Exxon Mobil is entitled to invoke protection under the Netherlands-Venezuela Investment Promotion and Protection Convention, which guarantees resolution of Exxon Mobil's dispute with Venezuela in the International Center for Settlement of Investment Disputes (ICSID).

The company Exxon Mobil organized to enter into a partnership with Venezuela's Pdvsa to develop Cerro Negro project (Mobil-Cerro Negro) is domiciled in the Netherlands, and this country is protected by the abovementioned convention, which became effective in August 1993.

This was the explanation provided by the experts daily newspaper El Universal interviewed in connection with Energy and Petroleum Rafael Ramírez's statements claiming that such agreement has distorted the judicial process pending between Pdvsa and Exxon Mobil.

...

Geneva Resources, Inc. Agrees to Settlement Release in Arbitration Dispute With Petaquilla Minerals Ltd.

April 14, http://www.forbes.com/prnewswire/feeds/prnewswire/2008/04/14/
prnewswire200804141440PR_NEWS_USPR_____LAM071.html

Geneva Resources, Inc. (Geneva Resources, Inc. or "Company") (OTC Bulletin Board: GVRS) has agreed to a settlement release in its arbitration dispute with Petaquilla Minerals Ltd. ("Petaquilla"), over Petaquilla's alleged rescission of a Property Option Agreement with Geneva. The agreement gave Geneva the right to earn an interest in certain Petaquilla claims in Panama known as the San Juan Concessions, which are owned and controlled by Petaquilla's Panamanian subsidiary.

...

Thailand: TOT ordered to pay TT&T USD750 million in arbitration case

http://www.telegeography.com/cu/article.php?article_id=22564

The Bangkok Post writes that state-run telco TOT has been ordered by an arbitration court to pay its privately owned fixed line rival and concessionaire TT&T THB24 billion (USD750 million) in returned revenues, fees and tax backdated to a period ending March 2005. In addition, TOT was ordered to pay a portion of revenues to TT&T until the expiration of its current revenue-sharing concession; TT&T operates provincial fixed line network services under a build-transfer-operate (BTO) licence held by TOT. According to Prasitchai Kritsanayunyong, an executive vice president of TT&T, the arbitration panel concluded that TOT had introduced other services in addition to fixed line telephony over infrastructure built and maintained by TT&T at a cost of over THB1 billion per year, but had not offered to share additional revenues with the private operator.

...

Malaysia: Improvements To Strengthen Role Of Arbitration Needed, Says Zaid

April 8, http://www.bernama.com.my/bernama/v3/news.php?id=325518

Minister in the Prime Minister's Department Datuk Mohd Zaid Ibrahim said Tuesday Malaysia must make further improvements to strengthen its role in arbitration in the region.

He said the market for arbitration was growing and therefore, those involve must plan to make it a success.

"We must be very competitive and emulate arbitration centres in other countries such as Singapore, Hong Kong and Indonesia where they appear to be very successful," he said when closing the Kuala Lumpur Regional Centre for Arbitration's (KLRCA) 30th anniversary conference here.

...

Maritime arbitration conference recommendations issued in Dubai

April 9, http://www.bi-me.com/main.php?c=3&cg=2&t=1&id=19046

UAE. The discipline of commercial and maritime arbitration has been increasingly one of the most important procedures during the age of globalisation which has brought a lot of complexities and dangers. Therefore, it has been necessary to highlight the requirements of this activity and clarify all the problems and ambiguities, then to provide their appropriate solutions so as to facilitate the performance of maritime arbitrators.

...

Maritime industry wants Dubai arbitration centre

April 7, http://www.menafn.com/qn_news_story_s.asp?StoryId=1093191867

A maritime arbitration centre may soon be created in Dubai based on a recommendation being prepared by a think tank, which has emphasised the need for such because of the increasing maritime trade in the region.

Dr Ibrahim Hassan Al Mulla, founder and general manager of the Emirates International Law Centre (EILC), yesterday said his company is recommending an administered arbitration, as against an ad hoc, system that is compliant to Islamic rules.

"Our idea is to revive the Islamic arbitration, which cover a wide range of topics," he added, stressing that maritime arbitration systems worldwide mostly cover only the amicable settlement of commercial disputes.

But the Islamic maritime arbitration system, he said, covers a wide range of related disputes, such as political, criminal, personal, civil and trade relations. "This is a very old system, but will still be very effective in settling various disputes," Al Mulla said.

New Zealand China Free Trade Agreement

http://chinafta.govt.nz/1-The-agreement/2-Text-of-the-agreement/index.php

The text of the agreement can be found here http://chinafta.govt.nz/1-The-agreement/2-Text-of-the-agreement/index.php

Dubai: the world's next great arbitration centre?

April 7, http://business.timesonline.co.uk/tol/business/law/article3698046.ece

In part two of our special on the Middle East: how the Gulf States are trying to build a world class centre for dispute resolution

...

ADAG`s Flag wins appeal against VSNL

April 8, http://www.business-standard.com/common/news_article.php?leftnm=10&bKeyFlag=BO&autono=319386

Hague court upholds 2006 ruling on cable upgrade dispute. In what is a significant victory for the Anil Dhirubhai Ambani Group (ADAG), a Netherlands-based district court in the Hague has upheld an order by the arbitration tribunal of the International Chamber of Commerce in 2006 directing Videsh Sanchar Nigam Ltd (VSNL, now Tata Communications) to permit Reliance Globalcom (formerly Flag Telecom) to upgrade its bandwidth capacity at the cable landing station in Mumbai.

...

Ecuador Minisiter Wants City Oriente To Pay Debt, End Arbitration

April 7, http://news.morningstar.com/newsnet/
ViewNews.aspx?article=/DJ/200804071549DOWJONESDJONLINE000587_univ.xml

Energy Minister Galo Chiriboga said Monday that privately held City Oriente will have to pay the debt it has with the Ecuadorean government and end its international arbitration process in order to receive compensation for the termination of its contract.

City Oriente, based in Panama and backed by U.S. investors, has started an arbitration process at the World Bank's International Center for the Settlement of Investment Disputes, or Icsid.

The claim against the Ecuador government says the government had broken its contract by forcing it to give over more of the windfall revenue.

City Oriente operates block 27 in Ecuador's Amazon region, producing around 3, 000 barrels of crude a day.

...

IPIC to call default if Hyundai continues dispute

April 8, http://uk.reuters.com/article/oilRpt/idUKSEO26660220080408

International Petroleum Investment Co (IPIC), the largest shareholder in Hyundai Oilbank, said on Tuesday it will demand Hyundai firms sell their 30 percent stake in the refiner unless they scrap "groundless legal disputes".

On March 25, Hyundai Heavy Industries (009540.KS: Quote, Profile, Research), the second-largest shareholder of Hyundai Oilbank, said it would exercise an option to buy a 70 percent stake in the refiner held by IPIC. [ID:nSEO284914]

The deemed offer had come a day after Hyundai Heavy, the world's biggest shipbuilder, sought a South Korean court injunction to bar the Abu Dhabi-based IPIC from selling its stake in the refiner to third parties.

The option to buy the shares cannot be cancelled, but in the case of disagreement with IPIC, Hyundai can process the option only if a mediation is made. Hyundai Heavy has already sought the judgement of a mediation body under Singapore's International Chamber of Commerce.

...

Thomas J. Stipanowich Presented With ABA Dispute Resolution Award

http://www.jamsadr.com//FeatureFull.asp?Feature2ID=85

Thomas J. Stipanowich, Esq., an arbitrator and mediator with JAMS, the nation's largest private provider of ADR services, has been presented with the American Bar Association's D'Alemberte/Raven Award on April 4, 2008 at the ABA Section of Dispute Resolution Spring Conference. The event was held at the Sheraton Hotel in Seattle.

The ABA D'Alemberte/Raven Award recognizes a member of the dispute resolution community who has made significant contributions to the field by developing new or innovative programs, improvements in service and efficiency, research and writings in the area of dispute resolution or continuing education programs. The award is named for Talbot D''Alemberte and Robert D. Raven, former ABA presidents and past leaders within the ABA in the area of dispute resolution.

...

Nigeria: Mittal May Drag FG to Court

April 7, http://allafrica.com/stories/200804071074.html

The Global Steel Infrastructures Holding Limited (GIHL) owned by a controversial Indian businessman, Mr. Pramod Mittal, is considering going to court over the revocation of the sale of the Ajaokuta Steel Company by the Federal Government .

At the Federal Executive Council (FEC) presided over by President Umaru Musa Yar'Adua last Wednesday, the government revoked its concession granted the GIHL to manage Ajaokuta and National Iron Ore Mining Company Limited.

A counsel to the GIHL told LEADERSHIP last night that "Mr. Mittal wants to first explore ways of dialogue with the Federal Government before proceeding to court over the issue."

A source at the office of the minister of justice and attorney-general of federation, Mr. Michael Aondoakaa, told our reporter last night, "the Federal Government is yet to receive any court summon" over the GIHL issue.

However, the GIHL official said that Mittal and his company, whose operations in Bulgaria and Nigeria recently ran into trouble, is not avoiding the Indian government and had visited India several times in recent months.

"The company, based in Isle of Man, has meanwhile started arbitration proceedings before the International Chamber of Commerce following the cancellation of its concessions to run a steel mill and an iron ore company in Nigeria," an official of GIHL said.

...

Dubai International Arbitration Centre Creates Framework for Excellence in Commercial Arbitration Training in the Region

http://practice.findlaw.com/law-practice-management-articles/0000/000407.html

Providing skilled arbitrators is crucial for Dubai to maintain its status as one of the world's leading business hubs, and the Dubai International Arbitration Centre (DIAC) has taken up this challenge with a series of Arabic and English courses for all levels of arbitrators.

According to Dr Hussam Talhuni, Director of the centre, the courses have been designed with DIAC's partners, the Lebanese University - Beirut- Lebanon and King's College London, to show arbitrators the recent scientitic and practical developments in solving commercial problems.

"DIAC started the training course in 2006 with King's College London, one of the UK's premier law schools, after studying our long-term strategy and long-term partnerships in providing courses in commercial arbitration in the region. Together we managed to design three levels of professional courses: stage 1, stage 2, and stage 3, which is quoted as special course.

PODCASTS

Manon Schonewille on Mediation in the Netherlands

Michael McIlwrath discusses the state of the art of Dutch mediation with Manon Schonewille, managing director of ACB Mediation Corporate Conflict Management, in the Hague, Netherlands.

This episode is available for download here www.cpradr.org/audio1.asp

AAA's Richard Naimark: Is International Arbitration Growing?

Join Mike and Richard Naimark, senior vice president of the American Arbitration Association. Richard oversees the AAA's International Centre for Dispute Resolution. He discusses the ADR market for big providers and regional organizations, as well as the growth of ad hoc arbitration.

This episode is available for download here www.cpradr.org/audio1.asp

EVENTS

ICC International arbitration seminar in Panama - April 15

http://www.iccwbo.org/iccbjjaa/index.html

Complex arbitral proceedings will be the subject of a seminar on 15 April 2008 jointly organized by ICC Panama and the International Court of Arbitration.

...

ICC stages arbitration workshop in Canada, May 1-2

http://www.iccwbo.org/icccaaai/index.html

The ICC International Court of Arbitration will stage a two-day arbitration workshop in Montreal on 1-2 May 2008, a first in Canada.

Following the success of the previous workshop in San Francisco last June, the ICC Court has decided to expand its educational programme across North America as part of its new promotional strategy.

Participants, including lawyers, advisors, and business executives active in international trade and dispute resolution will learn the strategies and tactics in drafting arbitration documents under the ICC rules and will be guided step-by-step through the arbitration process. A mock case will be studied within small working groups to ensure interactive participation.

...

Diploma in International Commercial Arbitration, June 1 - 14

The Australian and Malaysian branches of the Chartered Institute of Arbitrators, in conjunction with the University of New South Wales, are conducting a Diploma Course in International Arbitration from Sunday 1 June to Saturday 14 June 2008 in Kuala Lumpur, Malaysia.

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.

For more information, please visit www.acica.org.au

Specialised Arbitration & Advocacy Skills in International Oil & Gas Disputes

Seminar Presenters: Professor T.W. Walde; Tim Martin, Esq; Arif Hyder Ali, Esq; William H. Knull III, Esq and others.
September 08 - 12. Hilton Hotel, Dundee
More information is available at the CEPMLP website

Foreign Direct Investment International Moot Competition - Investor-State Arbitration: Perspectives on Legitimacy and Practice

Foreign Direct Investment International Moot Competition - Investor-State Arbitration: Perspectives on Legitimacy and Practice
The FDI Moot promotes an understanding of international investment laws and of arbitration as an effective mechanism for the adjudicating international investment disputes. The event attracts not only the student participants but also lawyers from the around the world, who act as judges as part of a program that allows them also to discuss in a collegial environment developments affecting the field. The FDI Moot involves a hypothetical case in connection with an investment by a private foreign investor. Each year’s hypothetical is prepared by the competition’s Advisory Board, composed of distinguished academics and practitioners in the fields of international arbitration, investor-State arbitration and international investment regulation.
October 31 - November 2. Boston, Massachusetts.
More information is available at www.fdimoot.org.

BOOKS

Transnational Litigation: Jurisdiction and Procedure

Author: Michelle Smith De Bruin
Publisher: Round Hall
Publication Date: 01/01/2008
ISBN: 9781858004907
Jurisdiction: Ireland

Transnational Litigation: Jurisdiction and Procedure is a new book that addresses the complex jurisdictional rules and procedural issues which arise when dealing with disputes which cross national boundaries. It focuses on the issues which are most likely to come across the desk of an Irish practitioner.

The primary focus is on the determination of jurisdiction and practical matters such as how to serve defendants out of the jurisdiction, choice of court clauses, service of proceedings, protective measures, the taking of evidence and cross border discovery, and the enforcement of judgments at home and abroad.

5 good reasons to have Transnational Litigation - Jusridiction and Procedure on your desk:

  1. Helps you to consider geographical and tactical matters which influence where your client should issue proceedings.
  2. It is the only Irish text which sets out the procedure in transnational litigation, for applications in the Circuit Court, High Court and Supreme Court.
  3. Brings you right up to date with latest case law.
  4. It is the most comprehensive Irish text in the area of transnational commercial litigation, family law and insolvency.
  5. Includes the text of each of the main Regulations and Conventions in the appendices together with a list of the Contracting States and Member States.

Contents

1. Introduction; 2. Choice of Court Agreements; 3. Commercial Matters in The European Union; 4. Family Law; 5. Insolvency Matters within The EU; 6. Proceedings in Which The Permission of The Court is Required to Serve Defendants Outside The Jurisdiction; 7. Service Of Proceedings Commenced In Ireland On Defendants Abroad; 8. The Conduct Of Proceedings In Ireland Once Served On A Foreign Defendant; 9. Service of proceedings commenced abroad on defendants in Ireland; 10. Interlocutory orders in aid of foreign proceedings - provisional or protectivemeasures; 11. Evidence and cross-border discovery; 12. Enforcing judgments