issue #17, week 24. 12 June 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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NEWS

Oligarchs to sue TNK-BP after failing to agree control of company

June 12, http://www.guardian.co.uk/business/2008/jun/12/bp.oil1

The battle for control of BP's Russian joint venture TNK-BP broke out in earnest yesterday when its oligarch partners said they would sue the British company in a Stockholm arbitration court while launching a separate court action in Moscow to strip BP-nominated directors of their powers.

...

STS vs. Covad Communications: ''Everyone loves arbitration. At least until arbitration goes badly,'' said the Judge in Confirming the Arbitration...

June 11, http://www.businesswire.com/

Privately held Saturn Telecommunications Services, Inc. ("STS" or "Saturn") announced today that the United States District Court, Southern District of Florida, has issued an Order confirming an award to STS in excess of $7.3 million in damages, attorneys' fees, costs and expenses and denying Covad's motion to vacate the award in an arbitration against Covad Communications Company, a subsidiary of Covad Communications Group, Inc. (San Jose, Calif.). Covad, now privately held, was recently purchased by an affiliate of Platinum Equity, LLC (Beverly Hills, Calif.) in a transaction valued at $477 million. The arbitration upon which the contested award was based had determined that STS had been fraudulently induced to enter into a BIA (Broadband Internet Access) Agreement with Covad in 2005, whereby Covad was to provide voice over internet protocol ("VoIP") services to Saturn and Saturn's retail customers. Legal representation in the appellate hearing was provided by Alan C. Gold, PA (Florida) for STS and Jerome B. Falk, Jr. of Howard Rice Nemerovski Canady Falk & Rabkin (California) for Covad.

In issuing the 13-page order, Hon. Adalberto Jordan, U.S. District Judge, led with the observation, "Everyone loves arbitration. At least until the arbitration goes badly." Apparently, he was referring to the propensity of defendants to count on an arbitration to go their way. Settlement of disputes by arbitration is often a proviso of large companies' agreements with small businesses and individuals.

...

CEDR expands its ranks

June 11, http://www.thelawyer.com/cgi-bin/item.cgi?id=133215&d=415&h=417&f=416

The Centre for Effective Dispute Resolution (CEDR) has expanded its direct access panel to 50 mediators, with 16 new members. The CEDR Solve direct panel, which already boasts members including former Lord Chief Justice Lord Woolf and ex-Court of Appeal judge Sir Henry Brooke, have seen City lawyers from DLA Piper, Lovells and Norton Rose come on board.

...

ICC Dispute Resolution Library goes online

10 June, http://www.iccwbo.org/icccbcjg/index.html

ICC's Dispute Resolution Library migrates to the Internet this week, and is currently on display at the International Council for Commercial Arbitration conference in Dublin.

The ICC Dispute Resolution Library (DRL) offers instant access online to over 1,000 documents from established ICC publications on international dispute resolution, including the ICC International Court of Arbitration Bulletin, which is packed with authoritative and practical information on arbitration law and ICC dispute resolution services.

DRL allows users from any work station to launch full-text and keyword searches of the entire library, specific publications, or categories of documents - easily and speedily.

"For lawyers who need to consult a document while traveling abroad, and documentalists compiling dossiers of research materials, the DRL is an invaluable ally," said Derek Ennis, CEO of Coastline Solutions, responsible for the technical development of DRL.

For convenience, DRL information is presented as individual publications and by categories of documents. A user looking for a particular issue of the ICC International Court of Arbitration Bulletin will be able to peruse the issue as she or he would do with the printed copy, while a search for awards only will call up a list of awards from which those likely to be of interest can be selected, accessed and bookmarked.

...

Nevada Supreme Court has amended Supreme Court Rule 10

June 10, http://www.nevadaappellatelaw.com/2008/06/articles/nevada-court-news/senior-judges-rule-amended/

The Nevada Supreme Court has amended Supreme Court Rule 10, relating to senior judges. See the amended rule here http://www.nvbar.org/pdf/adkt362.pdf. For the most part, the amendments appear to be clarifications of existing language. One change is that senior judges may not be employed as arbitrators or mediators with companies affiliated with private law firms. The amended rule takes effect June 26, 2008.

Nigeria: Federal Government Loses Arbitration to Solgas in London

June 10, http://allafrica.com/stories/200806100114.html

A panel of jurists adjudicating an arbitration brought before it in London, United Kingdom, by Solgas Nigeria Limited, erstwhile managers of the Ajaokuta Steel Company Limited (ASCL), against the Federal Government, has found the later liable and has ordered the company to file its statement of claims.

Vanguard learnt that while indicting the Federal Government over wrongful termination of the 10 years financial management services contract entered with Solgas, the Arbitration also questioned the actions of government personnel and that of Mr. Seun Oyefeso, the Executive Vice Chairman of the company.

...

Arbitration Development Center experts from Uzbekistan visit UK

June 10, http://news.uzreport.com/mir.cgi?lan=e&id=46841

Experts of the newly created Arbitration Development Center under the Chamber of Commerce and Industry of Uzbekistan participated in the study tour on 4-7 June to London, UK, to learn the British experience on the development of the arbitration courts.

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Sudan seeks arbitration to solve oil region crisis

June 8, http://africa.reuters.com/country/SD/news/usnBAN856305.html

Sudan's president and south Sudan's leader said on Sunday they would turn to international arbitrators to solve a bitter dispute over an oil-rich region that many fear could escalate into civil war.

...

Didiri Mohamed Ahmed, the lead northern official in charge of Abyei, said if the sides failed to agree on an international arbitrator after a month, they would turn to the Permanent Court of Arbitration based in The Hague to help them pick an organisation.

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Shell, Ashmore Seek Arbitration For Bolivia Pipeline

June 7, http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200806071453DOWJONESDJONLINE000431_univ.xml

Bolivia's government news agency says an arbitration request has been filed against the Bolivian government in response to the nationalization of gas pipeline company Transredes.

President Evo Morales nationalized all assets of the pipeline company on Monday. The company was half-owned by Royal Dutch Shell PLC (RDSA) and Ashmore Energy International.

...

Rosukrenergo Claims $55 Mln From Ukraine's Naftogaz in Stockholm

June 6, http://www.redorbit.com/news/business/1420932/rosukrenergo_claims_55_mln_from_ukraines_naftogaz_in_stockholm/

The Swiss-registered RosUkrEnergo AG, which is the exclusive distributor imported natural gas in Ukraine, has filed a claim with the Arbitration Institute of the Stockholm Chamber of Commerce seeking $55 million in penalties from Ukraine's Naftogaz for overdue payment for gas supplied in 2006, a RosUkrEnergo source told Interfax.

...

Mexico files a Request for interpretation of the Judgment of 31 March 2004 in the case concerning Avena and Other Mexican Nationals (Mexico v. United States of America) and asks for the urgent indication of provisional measures [PDF]

http://www.icj-cij.org/docket/files/139/14578.pdf

Today Mexico filed a Request for interpretation of the Judgment delivered on 31 March 2004 by the International Court of Justice (ICJ) in the case concerning Avena and Other Mexican Nationals (Mexico v. United States of America). Mexico invokes Article 60 of the Statute of the Court, which provides that: "In the event of dispute as to the meaning or scope of the judgment, the Court shall construe it upon the request of any party." A request for interpretation opens a new case. Mexico notes that in previous cases, the Court ruled that its jurisdiction to provide an interpretation of one of its own judgments "[was] a special jurisdiction deriving directly from Article 60 of the Statute".

...

Multinational Asset Recovery Company, LLC (M.A.R.C).

Press release

M.A.R.C will serve companies, financial institutions and individuals involved in international trade, financial services and investment with countries and/or companies whose performances have fallen short, or who have a reputation of falling short of standard, legitimate business practices.

Management Team: Franz J. Sedelmayer; Dr. Stefanie Solotych; Dr. Jack L. Gosnell; Dr. Steven Tuft; Craig T. Galle; J. Thomas Church; Wolfgang Heinicke; Laurence M. Rosenberg; John T. Gaffigan.

Visit the M.A.R.C website at www.marcompany.com for more information

PODCASTS

Lucky Generals - Mike Wheeler on Dispute Management

This week, Mike is joined by Harvard Business School's Michael A. Wheeler, a leading negotiation author and theorist. (See Michael A. Wheeler) They share detailed anecdotes on how companies-"engines that generate disputes"-practice conflict resolution via elaborate institutionalized systems, by finding creative measures, and even "down and dirty" fast processes. And they discuss why being a "Lucky General" isn't really a good way of supervising negotiating executives and managers.

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

EVENTS

ICC: Arbitration Day on Cross-Examination, June 23

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

The second training in the series of "Arbitration days" will focus on Cross-Examination and will take place on 23 June in Paris. Participants will have the possibility to learn more about the theoretical aspects of Cross-Examination followed by the more practical afternoon sessions which should allow for lively debate.

Australian Arbitration Seminar, June 27

www.acica.org.au

The Chair of the Australian Maritime and Transport Arbitration Commission (AMTAC), Mr Peter McQueen, invites you to attend a seminar on Promoting Australian Arbitration.

The presenters are drawn from the AMTAC Foundation Members, including the University of Queensland, Murdoch University and the Attorney General's Department, and from lawyers having practical arbitration experience.

...

Training for ICC Young Arbitrators, June 27-29

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

The training, which coincides with the launch of ICC's Young Arbitrators Forum, offers a rare opportunity for young lawyers and in house counsel to spend a weekend training with renowned arbitrators and members of the ICC International Court of Arbitration and its Secretariat. It will take place in Barcelona, Spain, on 27-29 June.

ICDR, AIPN to Host Dispute Resolution Conference in Brazil, October 20 - 21

http://www.adr.org/sp.asp?id=34679

The International Centre for Dispute Resolution (ICDR) and the Association of International Petroleum Negotiators (AIPN) are jointly hosting an international dispute resolution conference focusing on the oil and gas industry in Latin America.

International arbitration practitioners, as well as members of the oil and gas industry, are expected to attend the conference to be held Oct. 20-21 in Rio de Janeiro, Brazil. Simultaneous interpretation of the proceedings in English, Spanish and Portuguese will be available.

...

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

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.

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

Dechert taps Dewey & LeBoeuf for City arbitration partner Gal

June 05, http://www.legalweek.com/Home/Articles/1132630/Dechert+taps+Dewey++LeBoeuf+for+City+arbitration+partner.html

Dechert has bolstered its London arbitration practice with the hire of a partner from Dewey & LeBoeuf.

Daniel Gal joined the City arm of the Anglo-American firm this week from Dewey & LeBoeuf, where he had been a partner since January.

...

Leading International Arbitration and Trade Lawyer Joins King & Spalding

June 04, http://www.kslaw.com/portal/server.pt?space=KSPublicRedirect&control=KSPublicRedirect&PressReleaseId=3087

King & Spalding, a leading international law firm, announced today that Kenneth B. Reisenfeld, a top litigator with three decades of experience in international commercial and investment arbitration and in foreign trade compliance and enforcement investigations, has joined its Washington, D.C., office as a partner.

"Ken brings to our firm a truly exceptional background and recognition as a world-wide expert in international arbitration and international trade compliance," said Edward G. Kehoe, co-head of the firm's international arbitration practice. "We expect Ken to play a leadership role in building these growing practices in our Washington office, and globally."

Doak Bishop, co-head of the firm's international arbitration practice, said, "I have known Ken for decades and have admired his international reputation and client following based upon his stellar skills and collaborative, teamwork approach. We are thrilled that Ken has joined our firm."

Reisenfeld comes to King & Spalding from Haynes and Boone, LLP, where he was the founding partner of its Washington, D.C., office and chair of its international arbitration and litigation practice group and its international compliance and trade practice group. At King & Spalding, he is teaming up with lawyers of similar stature who have a global reputation for excellent legal counsel. These include the firm's latest arrivals to its international arbitration practice: Houston-based, high-profile litigators John Bowman and Jennifer Price, formerly with Fulbright & Jaworski, L.L.P., and Washington, D.C.-based Margrete Stevens, former acting lead counsel of the World Bank's International Centre for Settlement of Investment Disputes (ICSID).

...

Vinson & Elkins Adds International Dispute Partner in Hong Kong

http://www.vinson-elkins.com/resources/resource_detail.asp?rid=323519801&rtype=news

Vinson & Elkins LLP announces that Christopher Walker, recognized as one of the world's leading lawyers in international arbitration and litigation, is joining the law firm as a partner effective immediately.

Mr. Walker, a long-time partner at Linklaters in London and Hong Kong, joins V&E's expanding International Dispute Resolution Practice Group, which was recently recognized by Global Arbitration Review 30 as one of the top 30 practices in the world.

Stephen Bond - New General Editor for SIAR

http://www.whitecase.com/News/Detail.aspx?news=2127

Stephen Bond, partner at White & Case LLP in Paris and co-head of the firm's international arbitration group, has been appointed General Editor of the Stockholm International Arbitration Review (SIAR), an arbitration law journal founded in 1998 by the Arbitration Institute of the Stockholm Chamber of Commerce (SCC).

"We are indeed fortunate that Stephen Bond has accepted the position as General Editor," says Ulf Franke, Secretary General of the SCC. "We think that Stephen Bond is the right person to continue to strengthen SIAR's standing as one of the leading international arbitration journals. We have looked for a person with a high standing in the international arbitration community, who has an interest in the theory as well as the practice of international arbitration. Stephen Bond possesses those qualities," Ulf Franke continues.

"I am pleased and honored to be able to accept the kind invitation to become the General Editor of SIAR. As a leading arbitration center, what happens in Stockholm is of interest to arbitration practitioners the world over and I'm proud to be involved," Stephen Bond says.

Stephen Bond concentrates in the field of international commercial arbitration focused predominantly on disputes in the oil and gas, international joint venture, construction, computer, sales and distribution fields. He is former Secretary General of the ICC International Court of Arbitration (1985-1991) and former U.S. Member of the ICC International Court of Arbitration for the period 1994-1999. He was also vice-chair of the working group that drafted the 1998 ICC Rules of Arbitration. He is an American citizen and speaks English and French.

SIAR is an independent law journal. SIAR fulfils an important purpose of profiling and analyzing developments affecting arbitration law in Sweden and internationally, to providing a forum for publishing court cases affecting arbitration, and for publishing SCC arbitration awards and encouraging discussion. Every issue of SIAR includes articles by leading arbitration authorities, SCC arbitral awards with commentaries, court decisions, including those relating to investment disputes, from various jurisdictions with commentaries, notes and book reviews.

SIAR is published by Juris Publishing, a full-service legal publisher specializing in international and American law, based in New York. Read more at www.jurispub.com.

The SCC, based in Stockholm, Sweden, has been efficiently facilitating arbitral proceedings in international disputes since 1917 and is today one of the world's leading institutions in this field. The current SCC Rules, adopted in 2007, are modern and up-to-date. The rules provide international businesses with an efficient arbitral procedure that can be used worldwide. Read more at www.sccinstitute.com.

White & Case LLP is a leading global law firm with more than 2,300 lawyers in 37 offices in 25 countries. Among the first US-based law firms to establish a truly global presence, we provide counsel and representation in virtually every area of law that affects cross-border business. Our clients value both the breadth of our network and depth of our US, English and local law capabilities in each of our offices and rely on us for their complex cross-border transactions, arbitration and litigation. Whether in established or emerging markets, the hallmark of White & Case is our complete dedication to the business priorities and legal needs of our clients. Read more at www.whitecase.com.

Alvarez & Marsal Dispute Analysis & Forensic Services Expands West Coast Presence

http://www.alvarezandmarsal.com/en/news/article.aspx?article=6110

Alvarez & Marsal Dispute Analysis & Forensic Services, which provides a range of analytical and investigative services to major law firms, corporate counsel and management of companies involved in complex financial disputes, announced it has expanded its west coast presence. Xavier Oustalniol, an experienced forensic accounting and litigation consultant, has joined as a managing director based in San Francisco.

Mr. Oustalniol focuses on forensic accounting, fraud investigations and litigation consulting including securities litigation, international arbitrations, audit malpractice, purchase price disputes and damages analysis. He has worked with clients across a range of industries, with a notable focus on financial services institutions such as hedge funds, banks, insurance companies, investment companies, and broker-dealers. Over the course of his career, he has been involved with investigations and international disputes brought before the International Centre for Settlement of Investment Disputes (ICSID), the American Accounting Association (AAA), the International Chamber of Commerce (ICC) and other cross-border litigations or matters involving companies in Europe, Latin America and Asia. He has also testified as an accounting expert.

...

BOOKS

Valuation for Arbitration

M Kantor
June 2008, ISBN 9041127356, ISBN 13: 9789041127358
Hardcover, Kluwer Law International
USD price: $172.00

This book provides a clear understanding of the nuts and bolts of valuation approaches for business investments, including market, income and asset-based methods. It reviews tools that arbitrators may employ to reach their final compensation assessment on a principled basis. The book's many practical recommendations explore the decision making processes entailed in three central aspects of the arbitrator's role:

The presentation focuses not only on the legal standards applicable to the valuation (full or adequate compensation, reparations, restitution, actual loss, fair market value, fair or reasonably equivalent value, lost profits, etc.), but also on the informed judgment and reasonableness that must enter into the process of weighing the facts of each case and determining its aggregate significance. The book considers common valuation methods like discounted cash flows, adjusted present values, capitalized cash flows, adjusted book values and comparable sales and transactions. Additionally, it addresses means for arbitrators to assess expert valuation evidence in complex business investment disputes.

More information at www.kluwerlaw.com/Catalogue/titleinfo.htm?ProdID=9041127356&name=Valuation-for-Arbitration

Court Bulletin marks New York Convention anniversary

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

The latest issue of the ICC International Court of Arbitration Bulletin (Vol. 18 No. 2) focuses on the New York Convention, with articles by Albert Jan van den Berg, Giuditta Cordero Moss and William W. Park. Visit http://www.iccbooks.com/Product/ProductInfo.aspx?id=446&cid=117 for the table of contents and to order the English version. The French version will be available late June.