Transnational Dispute Management - TDM News Digest - The Network for International Arbitration, Mediation and ADR, International Investment Law and Transnational Dispute Management

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issue #15, week 43. 29 October 2010
Prepared by TDM and Aloysius Gng (CEPMLP/Dundee)

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

• Special Issue on Mergers and Acquisitions (M&A) Disputes and International Arbitration
  Editor: Beata Gessel-Kalinowska vel Kalisz; Reviewers: Cecilia Carrara & Luminita Popa
• Special Issue on Sanctions and International Arbitration: Impact on Substantive and Procedural Issues
  Editors: Ali Burney, Rinat Gareev, Kiran Nasir Gore, Prof. Joel Slawotsky, May Tai
• Special Issue on National Courts as a Forum for the Resolution of Disputes under Article 26 Energy Charter Treaty
  Editors: John Gaffney, Richard Happ, Lucia Raimanova, Anna-Maria Tamminen, Catharine Titi
• Special Issue on International Investment Arbitration - Environmental Protection and Climate Change Issues (Vol 4+)
  Editors: Prof. Dr A F M Maniruzzaman, Kiran Nasir Gore, Prof. Dr Stephen Minas
• Special Issue on The African Continental Free Trade Agreement (AfCFTA)
  Editors: J. Chaisse, J. Górski, E. Laryea, M.M. Mbengue, and K. Olaoye

Recent issues:

• TDM 5 (2018) - Strategic Considerations in Energy Disputes
• TDM 6 (2018) - FDI Moot 2018
• TDM 5 (2018) - Regular issue
• TDM 4 (2018) - Time and Cost Issues in International Arbitration
• TDM 3 (2018) - Sir Elihu Lauterpacht QC
• TDM 2 (2018) - International Commercial and Investment Disputes in and with India
• TDM 1 (2018) - Regular issue
• TDM 5 (2017) - FDI Moot 2017
• TDM 4 (2017) - Comparative and International Perspectives on Mediation in Insolvency Matters
• TDM 3 (2017) - One Belt One Road (OBOR)
• TDM 2 (2017) - Non-Legal Adjudicators in National and International Disputes
• TDM 1 (2017) - Regular issue
• TDM 6 (2016) - FDI Moot 2016
• TDM 5 (2016) - Latin America (vol. 2)
• TDM 4 (2016) - Africa
• TDM 3 (2016) - Three Centuries of Arbitration for Peace
• TDM 2 (2016) - Latin America
• TDM 1 (2016) - CETA
• TDM 7 (2015) - FDI Moot 2015
• TDM 6 (2015) - Regular issue
• TDM 5 (2015) - Yukos Special - OGEL 5 (2015) - Yukos Special
• TDM 4 (2015) - ArbitralWomen/TDM: Dealing with Diversity in International Arbitration
• TDM 3 (2015) - Renewable Energy Disputes - OGEL 3 (2015) - Renewable Energy Disputes
• TDM 2 (2015) - Arbitration in the Middle East: Expectations and Challenges for the Future
• TDM 1 (2015) - The Pacific Rim and International Economic Law: Opportunities and Risks of the Pacific Century
• TDM 6 (2014) - Dispute Resolution from a Corporate Perspective
• TDM 5 (2014) - FDI Moot 2014
• TDM 4 (2014) - CILS - 8th Biennial Symposium on International Arbitration and Dispute Resolution
• TDM 3 (2014) - Regular issue
• TDM 2 (2014) - The New Frontiers of Cultural Law: Intangible Heritage Disputes
• TDM 1 (2014) - Reform of Investor-State Dispute Settlement: In Search of a Roadmap
• TDM 6 (2013) - FDI Moot 2013
• TDM 5 (2013) - Art and Heritage Disputes in International and Comparative Law
• TDM 4 (2013) - Ten Years of Transnational Dispute Management
• TDM 3 (2013) - Corruption and Arbitration
• TDM 2 (2013) - EU, Investment Treaties, and Investment Treaty Arbitration - Current Developments and Challenges
• TDM 1 (2013) - Aligning Human Rights and Investment Protection
• TDM 5 (2012) - Legal Issues in Tobacco Control
• A Liber Amicorum: Thomas Wälde - Law Beyond Conventional Thought
• TDM 5 (2011) - Resolving International Business Disputes by ADR in Asia
• TDM 4 (2011) - Contingent Fees and Third Party Funding in Investment Arbitration Disputes
• TDM 3 (2011) - Intersections: Dissemblance or Convergence between International Trade and Investment Law

NEWS

International Arbitration Survey: Choices in International Arbitration

http://www.arbitrationonline.org/research/2010/index.html

Choices in International Arbitration 2010

The 2010 International Arbitration Survey, sponsored by White & Case LLP, is one of the largest independent empirical studies ever conducted on corporate attitudes and practices regarding international arbitration. It is the largest of the three surveys conducted by the School (the first two surveys were published in 2006 and 2008).

The 2010 Survey returns to the core of the arbitration process. It focuses on the key factors that drive corporate choices about arbitration: how are decisions made about arbitration, who influences these decisions and what considerations are uppermost in the minds of corporate counsel when they negotiate arbitration clauses. It also considers other key aspects such as the appointment of arbitrators, confidentiality and time and delay.

The survey was based on an unprecedented 136 questionnaire responses with further qualitative data drawn from 67 in-depth interviews. Questionnaire respondents and interviewees were general counsel and other corporate counsel from corporations across a range of industries and geographical regions, and a significant number of corporations based in emerging markets.

International Dispute Resolution Facility for the Financial Markets in The Hague

Oct 26, http://www.rnw.nl/international-justice/article/international-financial-tribunal-planned-hague

International legal experts plan to set up an international financial court in The Hague which would handle disputes among private parties over derivatives and other complex financial products. The final decision over the court is expected in the summer of 2011.

"The establishment of an international dispute resolution facility that contributes to legal certainty in the OTC (over the counter) derivatives markets, fits well in a broad range of initiatives to enhance financial stability," Dutch Central Bank Governor Nout Wellink said in his opening speech at a conference discussing the matter in The Hague on Monday.

Fiji becomes 145th signatory to New York Convention

Oct 2010, http://www.iccwbo.org/court/arbitration/index.html?id=39318

Fiji has become the latest country to put its name to the New York Convention. This means that Fijian courts will be obliged to recognize and enforce foreign arbitral awards that come within the scope of the New York Convention and to refer to arbitration any disputes brought before them that are covered by an arbitration clause.

Ratification of the New York Convention is generally seen as a means of encouraging foreign trade and investment, where arbitration is nowadays the preferred method of resolving disputes. The Convention will become effective with respect to Fiji from 26 December 2010. More information on the status of the New York Convention is available on the UNCITRAL Website.

Argentina drops telecom antitrust investigation

Oct 13, http://www.reuters.com/article/idUSN1328160620101014

Reuters - ... Economy Minister Amado Boudou said the companies had decided to withdraw a complaint they had filed at the World Bank arbitration tribunal, the International Center for Settlement of Investment Disputes. "The agreement we have reached means the complain the companies had brought before the ICSID has been dropped," Boudou told a press conference.

Argentina: Fugro Says Falklands BHP Survey Was Legal Amid Probe

Oct 07, http://www.bloomberg.com/news/2010-10-07/fugro-says-falklands-bhp-survey-was-legal-amid-argentine-probe.html

Fugro NV, the world's largest surveyor of deepwater oil fields, said it doesn't believe it broke the law when it carried out work near the Falkland Islands that has become the subject of an Argentine investigation.

Armenia: Caldera Takes Positive Steps to Further Assert Its Rights on the Marjan Project, files request for arbitration

Oct 22, http://www.calderaresources.com/press-releases-gold-armenia

Caldera Resources Inc. announced today that it has filed a request for arbitration in accordance with the terms and conditions set forth in the joint venture agreement with Global Gold Corporation directed to the Marjan Project (the "JVA"). Under section 7 of the JVA, the parties' recourse for resolving "disputes" and "controversies" amongst themselves is limited to Arbitration.

Bill Mavridis, President and CEO, stated: "By filing for arbitration we are taking positive steps to eliminate the confusion caused by Global Gold in relation to Caldera's rights as 55% owners of the Marjan Project under the JVA. Caldera has complied with the letter and spirit of the JVA and will continue to do so. The facts and laws clearly support our position, and at the same time I confirm that Caldera is working towards amicably resolving this situation with our JV partner."

Caldera confirms it received a letter from the Chief of Staff of the Ministry of Energy and Natural Resources of the Republic of Armenia (MENR), dated October 11, 2010, that the Marjan Mining license is in order. Caldera was also advised on October 18, 2010, by its representatives in Armenia, that they received a letter dated October 13, 2010, from the MENR advising of certain deficiencies that occurred under the tenure of Global Gold; this letter is a notice of the deficiencies with the license with an invitation to Caldera, through its Armenian subsidiary, Marjan Mining Company LLC, to address them. The Company is currently taking all the necessary steps to address the deficiencies, and, from the feedback it has received, is confident that they will be resolved favourably.

Caldera confirms that it is and remains the operator of the Marjan project and that it continues to actively work toward the project's success. The Management and Board stand behind their press release of October 12, 2010. (http://www.newswire.ca/en/releases/archive/October2010/12/c9659.html)

Australia: Arbitration centre to appoint arbitrators, domestic regime uncertain

Oct 19, http://au.legalbusinessonline.com/news/breaking-news/arbitration-centre-to-appoint-arbitrators-domestic-regime-uncertain/50033

Attorney General Robert McClelland has recommended that the new Australian Centre for International Commercial Arbitration be given the power to appoint arbitrators in disputes. The powers would be available to the centre in circumstances where parties cannot agree upon an arbitrator or a party fails to appoint an arbitrator. Previously, only the courts performed this function in Australia. Since the centre officially opened in August this year it has hosted 25 arbitration cases, both domestic and international.

Australia: Miner claims Ivanhoe proposal breaches agreed obligation

Oct 20, http://www.theaustralian.com.au/business/opinion/miner-claims-ivanhoe-proposal-breaches-agreed-obligation/story-e6frg9if-1225940905654?from=public_rss

Rio claims the capital raising breaches a range of obligations written into a 2006 investment agreement between the two international mining houses. Rio's threat to either seek further arbitration or injunct the "strategic rights offering" is detailed in a prospectus Ivanhoe has lodged with the US Securities and Exchange Commission.

Australia: Mining tax risks 'years of litigation'

Oct 26, http://www.theaustralian.com.au/business/mining-energy/mining-tax-risks-years-of-litigation/story-e6frg9df-1225943449499

THE complexity of the Gillard government's proposed mining tax could lead to years of litigation, experts warned yesterday. The potential threat comes as companies move to challenge the Australian Taxation Office over key aspects of the regime.

Canada: Goldbrook Commences Arbitration Proceedings Against Jilin Jien

Oct 20, http://www.goldbrookventures.com/media/2010%20GBK%20NR%20Arbitration%20Jilin%20Jien.pdf

Further to its press release dated September 21, 2010, Goldbrook Ventures Inc. announces that it has commenced arbitration proceedings in British Columbia against Jilin Jien Nickel Industry, Co., Ltd. and its affiliates ("Jilin Jien") in respect of Jilin Jien's purported issuance of voting common shares of Jien Canada Mining Ltd. ("Jien Canada") that would reduce Goldbrook's percentage of voting shares, and consequently Goldbrook's interest in the Nunavik Nickel Project, from 25% to 4.21%. Goldbrook is seeking remedies, including declarations that the share issuance violated the terms of the Shareholder Agreement between the parties and that Goldbrook continues to hold 25% of the voting shares of Jien Canada.

Canada: Quebec mayor wants N.L. oil dispute resolved

Oct 22, http://www.cbc.ca/canada/newfoundland-labrador/story/2010/10/22/nl-old-harry-1022.html

A mayor on Quebec's Magdalen Islands is calling on the federal government to step in to resolve an oil dispute in an area of the Gulf of St. Lawrence called Old Harry.

China-Taiwan: Cross-strait investment protection

Oct 21, http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aOPN&ID=201010210012

Taiwan and China are currently negotiating an investment pact that is likely to be signed at the end of this year. For Taiwan, the goal of signing the agreement should be to obtain greater protection for China-based Taiwanese businesses than that provided under China's existing investment protection law.

Congo Will Respect First Quantum Arbitration, Minister Says

Oct 25, http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/10/25/bloomberg1376-LAUHV76S972B01-28BP3JO4FMPEMT595Q5Q6IDMB5.DTL

Bloomberg - Democratic Republic of Congo will respect the results of an international arbitration case filed by First Quantum Minerals Ltd. over a canceled $750 million mining project, Mines Minister Martin Kabwelulu said.

Congo: First Quantum Minerals Granted Interim Measures Orders in International Arbitration Regarding the Kolwezi Project

Oct 27, http://www.marketwatch.com/story/first-quantum-minerals-granted-interim-measures-orders-in-international-arbitration-regarding-the-kolwezi-project-2010-10-27?reflink=MW_news_stmp

First Quantum Minerals Ltd. today announced that the International Chamber of Commerce Tribunal (the "Tribunal") appointed to hear the international arbitration regarding the Kolwezi project has ruled on an interim measures application filed by First Quantum's subsidiary CMD, the IFC (International Finance Corporation) and the Industrial Development Corporation of South Africa ("IDC"), which was heard on October 12, 2010.

Specifically, the Tribunal ordered that the DRC and Gecamines cannot enforce directly or indirectly the March 10, 2010 decision of the DRC Court of Appeal which includes the US$12 billion damages judgment issued by the DRC Court of Appeal against KMT and CMD, maintaining the temporary Order issued on August 19, 2010. This ruling impacts the ongoing efforts by the DRC to enforce the Court judgment through the appointment of a Liquidator and means that the DRC cannot liquidate First Quantum's assets in the country in payment of the damages claim.

Reported statements suggesting the DRC has won the case or now has a right to transfer the Kolwezi assets are completely without foundation. The ICC Tribunal has made no rulings on the merits of the case and the hearing of the arbitration is not scheduled until early 2012. The Tribunal in fact concluded that CMD, IFC and IDC established prima facie that they have valid claims on the merits. Further, the Tribunal did not grant any orders with respect to the transfer of the Kolwezi tailings permit, which had already been transferred to a British Virgin Islands registered company in August 2010. The Tribunal has also directed the parties not to engage in a media campaign with respect to the arbitration. The Company intends to respect that Order and therefore will not comment further on the details of the decision.

Clive Newall, President of First Quantum said: "The Tribunal's ruling on interim orders is a significant development for First Quantum because it upholds the previous decision that the US$12 billion damages judgment cannot be enforced by the DRC or Gecamines. Whilst we believe this is an important step forward, it is important to be clear that the merits of the arbitration itself will not be heard by the Tribunal for some time.

While we have provided this update to correct misinformed reports on the interim measures and to inform our shareholders, we do not intend to engage in a media debate in relation to the arbitration and hope representatives of the DRC will respect the Tribunal's order in this regard."

Congo: Says It Won Interim Decision Against First Quantum

Oct 26, http://www.businessweek.com/news/2010-10-26/congo-says-it-won-interim-decision-against-first-quantum.html

Bloomberg - The Democratic Republic of Congo won an interim decision at the International Court of Arbitration in Paris allowing the country to sell a project previously owned by First Quantum Minerals Ltd., the mines minister said.

Congo: Tullow Says Was No Alternative to Suing Congo Over Lake Albert Oil Blocks

Oct 15, http://www.bloomberg.com/news/2010-10-15/tullow-says-was-no-alternative-to-suing-congo-over-lake-albert-oil-blocks.html

Tullow won a temporary injunction in a British Virgin Islands court on Sept. 21 against the development or resale of the blocks along the Ugandan border, which now belong to companies owned by Khulubuse Zuma, the nephew of South African President Jacob Zuma. Tullow has also lodged a case against Congo at the International Court of Arbitration in Paris.

Czech Republic's Premier Confident of Winning Solar Arbitration, HN Says

Oct 22, http://www.bloomberg.com/news/2010-10-22/czech-republic-s-premier-confident-of-winning-solar-arbitration-hn-says.html

Czech Prime Minister Petr Necas said the government is unlikely to lose if solar power producers that it plans to tax take the matter to arbitration, Hospodarske Noviny reported.

Details Emerge About An Austrailian-Russian Bauxite Cartel

Oct 25, http://www.businessinsider.com/details-emerge-about-an-austrailian-russian-bauxite-cartel-2010-10

A year ago in Moscow, the Queensland state premier, an Australian Labor Party (ALP) politician named Anna Bligh, was threatened that if she didn't give Oleg Deripaska what his United Company Rusal wanted from the state, he would punish the state treasury with the withdrawal of millions of dollars in bauxite mining royalties. Bligh has been doing her best to give him what he wants - and keep her deal secret.

Estonia: Government to Wade into Kiviõli Controversy

Oct 22, http://news.err.ee/politics/9a6b378e-a6a8-44c4-a84a-b99da0f243ed

In November the government will announce its decision on whether it will expropriate 330 hectares of land belonging to businessman Nikolai Reisman, making it available to the neighboring Kiviõli Oil Shale Processing & Chemicals Plant which needs the land in order to stay in business.

France: Lectra receives €15.1 million following the award rendered by the International Arbitral Tribunal against Induyco

Oct 7, http://www.lectra.com/binaries/Lectra_Pressrelease_SpanishCourtofAppeals_071010_tcm31-150198.pdf

On September 20, 2010, the Madrid Court of Appeals issued a decision overturning and vacating the interim order entered by the Madrid Court of First Instance, and thereby lifted the temporary injunction obtained by Induyco in November 2009. That injunction had temporarily suspended execution of the first demand bank guarantees that were provided to Lectra by Induyco.

Following the appellate court's decision, which cannot be appealed, Lectra called on the first demand guarantees and in accordance with their terms Lectra received 15.1 million on October 7.

Induyco (a member of the Spanish group El Corte Inglés), former shareholder of Investronica Sistemas, provided these first demand bank guarantees to secure its obligations under the stock purchase agreement signed on April 2, 2004. The parties agreed that any disputes arising out of the stock purchase agreement would be finally settled by international arbitration under the Rules of the International Chamber of Commerce in London, England.

In June 2005, Lectra commenced arbitration against Induyco and on October 21, 2009, the international arbitral tribunal awarded Lectra 25.7 million in damages and interest (as of September 30, 2010). Following the notification of the award, Lectra called on the demand guarantees and requested that Induyco pay the full amount of the award. Induyco had then initiated an action in Spain and obtained the interim order temporarily suspending the operation of the first demand guarantees.

In addition, Induyco commenced an action in England to set aside the award. On July 1, 2010, the London High Court of Justice dismissed in its entirety and put an end to Induyco's action.

The decisions of the Madrid Court of Appeals and the London High Court of Justice reinforce Lectra in its commitment to vigorously enforce its rights and to recover the full amount due to it under the award.

As at June 30, 2010, the company had not recorded in its accounts the amounts awarded by the arbitral tribunal. It will review, in its financial report that will be released on October 28, 2010, the impact of the decision of the Madrid Court of Appeals and of the receipt of 15.1 million in its third quarter accounts.

Government of Uruguay Taps Foley Hoag for Representation in International Arbitration Brought by Philip Morris to Overturn Country's Tobacco Regulations

Oct 8, http://www.marketwatch.com/story/government-of-uruguay-taps-foley-hoag-for-representation-in-international-arbitration-brought-by-philip-morris-to-overturn-countrys-tobacco-regulations-2010-10-08?reflink=MW_news_stmp

Uruguay's ordinances part of 170-nation effort to combat smoking by the World Health Organization; Philip Morris alleges that regulations violate Switzerland-Uruguay bilateral investment treaty

Hong Kong, Mainland China Sign Legal Pact, by Mary Swire, LawAndTax-News.com, Hong Kong

Oct 27, http://www.tax-news.com/news/Hong_Kong_Mainland_China_Sign_Legal_Pact____46059.html

Hong Kong's Secretary for Justice, Wong Yan Lung, and mainland China's Vice Chairman of the China Council for the Promotion of International Trade, Dong Songgen, have signed a bilateral cooperation arrangement on legal services for commercial matters and arbitration. ... Wong confirmed that the Department of Justice strives to promote Hong Kong as a regional legal services and dispute resolution centre. "Hong Kong International Arbitration Centre has successfully emerged as a key international arbitration centre in the Asia Pacific region," he said.

India-Sudan: Bilateral Investment Promotion and Protection Agreement (BIPA) Signed; Comes Into Force from Today

Oct 18, http://pib.nic.in/release/release.asp?relid=66403

Bilateral Investment Promotion and Protection Agreement (BIPA) between the Republic of India and the Republic of Sudan has become effective from today with the exchange of Instruments of Ratification (IoR) between them. Shri Govind Mohan, Joint Secretary (Infrastructure & Investment), Department of Economic Affairs, Ministry of Finance, Government of India and H.E Mr. Khidir Haroun Ahmed, Ambassador of the Republic of the Sudan in New Delhi exchanged the Instruments of Ratification in a ceremony, here today.

India has so far signed BIPA with 79 countries. Of these, 68 have already come into effect. BIPA seeks to promote and protect investments from one country in the other country. BIPAs facilitate bilateral investment flows and grant benefits of National Treatment (NT) and Most Favoured Nation (MFN). With the exchange of IoR today, Sudan becomes the 69th country with which our BIPA has become effective.

BIPA between India and Sudan was signed on 22nd October 2003 by the Minister of Disinvestment and Communication and Information during his visit to Khartoum, Sudan. Indian model text was the basis of negotiation. Our Cabinet had approved signing and ratification of BIPA with Sudan in January 2003.

The Agreement requires both the countries to encourage and create favourable conditions for investors of each other to make investments in their territory and to admit investments in accordance with their laws. Investments from either country in the territory of the other country are to be accorded National Treatment and Most Favoured Nation Treatment implying that the investment shall be provided a treatment which is not less favourable than that provided by the home country to investments of its own investors or investors from any other country. Besides, investors are to be provided Most Favoured National Treatment in respect of their investment. It also provides an elaborate dispute resolution mechanism which includes recourse to negotiations, conciliation and international arbitration.

Oct 11, http://economictimes.indiatimes.com/News/News-By-Industry/Balco-arbitration-over-may-buy-govts-stake-by-March-Vedanta/articleshow/6729306.cms

Vedanta Resources on Monday said the long-drawn arbitration process for buying government's remaining 49 per cent stake in Balco is over and the group expects to complete the acquisition by the end of this fiscal. "Arbitration process is concluded. Award is expected soon. By March, we hope to acquire government's residual stake," Vedanta Resources chairman said in an interview.

Israeli President Phones Saakashvili over Arrested Businessmen

Oct 19, http://www.civil.ge/eng/article.php?id=22767

Israeli President, Shimon Peres, has phoned his Georgian counterpart, Mikheil Saakashvili, to make sure the two Israeli businessmen, arrested by Georgia on bribery charges, are treated well, according to the Israeli media reports. ... According to the Georgian prosecutors Ron Fuchs and his Greek partner from company, Tramex, Ioannis Kardassopoulos, with the assistance of Zeev Frenkiel were trying to bribe the Georgian Deputy Finance Minister, offering him USD 7 million in exchange for "convincing the Georgian government" not to challenge a decision of an international arbitration.

Ivanhoe Mines delivers response and initiates counter-claim in arbitration proceeding with Rio Tinto - Thu Oct 28, 2010

Oct 26, http://www.ivanhoemines.com/i/pdf/2010Oct26-NR.pdf

Robert Friedland, Executive Chairman and Chief Executive Officer of Ivanhoe Mines, announced today that Ivanhoe Mines has delivered a statement of defence and initiated a counter-claim as part of an ongoing arbitration proceeding launched by Rio Tinto on July 9, 2010.

The statement of defence rejects Rio Tinto's claim that the shareholders' rights plan approved by Ivanhoe Mines' shareholders on May 7, 2010, breached Rio Tinto's contractual rights under its agreements with Ivanhoe Mines.

The counter-claim contends that Rio Tinto has breached its covenants in its private placement agreement, signed with Ivanhoe Mines in October 2006, not to engage in activities that could affect control of Ivanhoe Mines without Ivanhoe's permission.

An independent arbitrator has scheduled hearings of the claim and counter-claim between January 18 and February 5, 2011.

Mr. Friedland said that the arbitration proceeding should not have any negative impact on the rapid pace of full-scale construction now underway at Oyu Tolgoi to bring the mining complex into production ahead of schedule in 2012.

Kazakhstan: Crowell & Moring Files A Notice of Arbitration On Behalf of Ruby Roz Agricol Against The Republic of Kazakhstan

Oct 11, http://www.crowell.com/NewsEvents/PressRelease.aspx?id=321

Press Release - Crowell & Moring LLP has filed a Notice of Arbitration on behalf of Ruby Roz Agricol (Ruby Roz), a large poultry company operating in Kazakhstan, and its owner, Kassem Omar, against the Republic of Kazakhstan. The notice, filed pursuant to the rules of the United Nations Commission on International Trade Law (UNCITRAL), seeks hundreds of millions of dollars in damages, and alleges Kazakhstan President Nursultan Nazarbayev personally ordered his country's government to illegally expropriate Ruby Roz's entire business as part of the overall scheme to expropriate several billion dollars of assets held by relatives and friends of the Kazak ruler's former son-in-law, Dr. Rakhat Aliyev.

The notice alleges that, as with other pending international claims against Kazakhstan, in 2007 a dispute arose between Nazarbayev and Aliyev, particularly regarding Nazarbayev's decision to alter the Kazakh Constitution and make himself "President for Life." The notice states that Nazarbayev took action once Aliyev proposed he might run for president himself in order to develop the country's budding democratic system in the Post-Communist era and initiated a campaign that forced Aliyev to flee the country and seek protection in the European Union, where he had served in Vienna, Austria as the Kazakh Ambassador. The notice alleges that Nazarbayev seized or destroyed several billion dollars of energy, media, food services, real estate, and other key business interests in Kazakhstan owned by the family of Aliyev's brother-in-law, Issam Hourani (also spelled Khorani). The notice further claims that Ruby Roz was especially targeted because its owner, Kassem Omar, is married to Isaam Hourani's sister.

Omar purchased Ruby Roz in 2004, investing approximately US$73 million to transform it into a modern and profitable operation. By 2007, when the dispute between Nazarbayev and Aliyev began, the company had garnered a significant percentage of the Kazakh poultry product market and was worth hundreds of millions of dollars.

Stuart H. Newberger, a partner at Crowell & Moring in Washington, D.C., and counsel for Ruby Roz Agricol, Omar and Hourani family members, said, "As part of its documented campaign of harassment, intimidation and retaliation against the Hourani family, the government of Kazakhstan seized a vibrant and profitable poultry business without any compensation in violation of its own laws and international law. We fully expect this arbitration to rectify this injustice and provide Ruby Roz Agricol and its owner the lost profits they expected to receive but for Kazakhstan's violations."

The Notice of Arbitration is one of several legal disputes Crowell & Moring is pursuing on behalf of the Hourani family under international law and in the US courts. The largest of the claims, brought by Caratube International Oil Company (92% owned by Devincci Hourani, a US Citizen), will be heard in February 2011 by an international tribunal at ICSID, the International Centre for Settlement of Investment Disputes (under the auspices of the World Bank) sitting in Paris, France. The Notice of Arbitration for Ruby Roz and Omar under UNCITRAL asks that the tribunal reviewing the claim consist of three arbitrators and that it sit in New York. Recently, Isaam Hourani and Devincci Hourani filed a US$2 billion lawsuit in a Washington, D.C. federal court against Alexander Mirtchev, his firm Krull Corporation, the international security firm GlobalOptions, Inc. and its subsidiary, GlobalOptions Management for orchestrating Nazarbayev's campaign to seize all of the Hourani Family's business interest in Kazakhstan. That lawsuit also alleges that the Kazakh Embassy in Washington was directly involved in a smear campaign against Issam Hourani by posting defamatory and false allegations on its website. Further legal actions are expected to be filed within the next 30 days.

At least in part as a result of the filing of these legal actions, it has been publicly reported that Kazakhstan has stepped up its efforts to assassinate Aliyev, who is seeking immunity from the World Bank as a witness in the Caratube arbitration, and has received long-term protection from Western countries. Kazakhstan's efforts to have Aliyev extradited from Austria to Kazkhstan have been rejected by the Austrian courts because of the threats to his life and safety.

Malayasia: Award issued by the Arbitral Tribunal in respect of the Arbitration Proceeding between Tenaga Nasiaonal Berhad (TNB) and Prai Power Sdn. Bhd. (PPSB)

Oct 07, http://www.tnb.com.my/application/uploads/uploaded/Reference%20No.%20TN-101007-62122.pdf

On 28 March 2007, PPSB commenced arbitration proceedings against TNB for allegedly wrongfully deducting a sum of RM11,863,061.15 from available capacity payments due and payable to PPSB for the month of November 2006.

PPSB's claim was however subsequently amended with leave of the arbitral tribunal and an amended Statement of Claim was served on TNB on 15 February 2008 for RM113,713,227.03. It is PPSB's claim that the additional sum of RM101,850,165.88 is an amount that is payable by TNB to PPSB in respect of available capacity payments from June 2003 to October 2006. This additional sum of RM101,850,165.88 was then amended during the hearing to RM102,955,752.86 (with an alternative claim of RM51,583,580.91).

TNB's response is that such sum was legally deducted in accordance with the terms of the power purchase agreement between TNB and PPSB following the latter's failure to generate electricity for an extended period of time.

In addition, TNB had also filed in a counterclaim amounting to RM12,700,829.76 against PPSB in the matter. The RM12,700,829.76 amount arose from a reconciliation of calculations of available capacity payments that had been carried out by the parties, admitted but subsequently denied by PPSB.

Hearing and Award

The hearing of the matter was held at the Kuala Lumpur Regional Centre for Arbitration between 12 to 22 January 2009 and TNB have today received notification of the Award issued by the Arbitral Tribunal which directs as follows:

(a) Prai's claim of RM11,863,061.15 fails and is dismissed save for the sum of RM2,352,311.46 which is allowed together with interest;

(b) Prai's claim of RM102,955,752.86 and the alternative claim of RM51,583,580.91 fail and are dismissed;

(c) TNB's counterclaim amounting to RM12,700,829.76 succeeds in substantial part and Prai shall pay TNB the sum of RM. 10,160,663.80 together with interest thereon;

(d) Prai shall pay in full the fees and travel and other expenses for the Tribunal and the reasonable expenses and administrative charges of KLRCA relating to this arbitration and TNB shall be entitled to recover from Prai such portion of the abovementioned fees, expenses and charges as TNB has paid for;

and

(e) Prai shall pay TNB's legal costs, expenses and disbursements in this arbitration

Peru: Inca Pacific Disagrees With the Government of Peru's Intention to Sell Magistral

Oct 12, http://www.incapacific.com/s/NewsReleases.asp?ReportID=423078&_Type=News-Releases&_Title=Inca-Pacific-Disagrees-With-the-Government-of-Perus-Intention-to-Sell-Magis...

The Company is extremely disappointed that the Government of Peru has taken the action to sell Magistral prior to a decision by the arbitration panel with respect to the ongoing dispute between the Company's subsidiary Minera Ancash Cobre S.A. ("MACSA") and Activos Mineros S.A. (for additional information see news release dated October 1, 2010). ProInversion's action shows complete disregard for the contractually agreed process of solving disputes between parties and for what the arbitration panel, comprised of Dr. Cesar Luna Victoria Leon, Dr. Cantuarias Fernando Salaverry, and Dr. Gonzalo García Calderón Moreyra, may think of the dispute.

For the past ten months, the Company, through its subsidiary MACSA, has attempted to maintain a dialogue with the Peruvian Government, including representatives of Activos Mineros S.A. and ProInversion, in an attempt to find a commercial resolution to the dispute. While progress has been slow, we believed that the parties were acting in good faith and were willing to find a solution. The actions today leave little doubt as to the intentions of the Government of Peru.

The Company is in the process of requesting ProInversion to cease all efforts to sell or seek a third party to develop and exploit the Magistral Project prior to a final decision having been reached by the arbitration panel. The Company is considering all legal remedies available to protect its rights under the terminated Magistral Transfer Agreement which govern the five core claims that hold the Magistral copper deposit. The Company will provide additional information as it becomes available.

Oct 20, http://en.rian.ru/business/20101020/161026713.html

Russia's Customs Service has refunded Russian-British venture company TNK-BP 6.17 billion rubles in overpaid customs duties in an out-of-court deal with the oil major, customs chief Andrei Belyaninov said on Wednesday.

Russia: Decision to seize Russian assets in Sweden formally suspended after appeal - official

Oct 15, http://www.interfax.com/newsinf.asp?id=195565

Interfax - The Russian presidential property management office has lodged a petition with Stockholm's court appealing its decision to seize Russian assets in Sweden, property management office spokesman Viktor Khrekov told Interfax on Friday.

"The execution of the Stockholm City Court's resolution dated October 11 was formally suspended after the appeal was lodged," Khrekov said.

Russia: Franz J. Sedelmayer vs. Russian Federation: Swedish Court Orders the General Arrest of Russian Federation Assets in Sweden

PRESS RELEASE - On Monday October 11, 2010, the Stockholms tingsrätt (Stockholm City Court) ordered the general arrest of property owned by the Russian Federation to assure the Russian Federation cannot obstruct enforcement proceedings currently taking place in Sweden. (case no. T 15420-10)

In the past, the Russian Federation has attempted repeatedly to obstruct justice by transferring state assets to third parties, and by deliberately avoiding the international service of court documents as prescribed by various international conventions Russia is a signatory to.

It is the very first time a Swedish court has issued a general arrest order against a foreign sovereign nation.

Today, the Swedish Bailiff Service has already seized certain real estate owned by the Russian Federation in Sweden. (U-29126-10/0103)

Background: Franz J. Sedelmayer, a German citizen residing in France, has obtained Swedish judgments and an arbitral award against the Russian Federation for tens of millions of Swedish Crowns between 1998 and 2009, under the auspices of the Stockholm Arbitration Institute. The case concerned the illegal expropriation of Sedelmayer's holdings in Saint Petersburg, Russia, in 1995 by the late Russian President Boris Yeltsin. Russia has since categorically refused to compensate this creditor. Sedelmayer recently managed to auction off Russian Federation property in Germany, making him the only successful private creditor of Russia to date. http://www.marcompany.com/en/press.htm

Sweden traditionally applies the doctrine of restrictive immunity allowing compulsory enforcement into assets a foreign state holds in Sweden as long as those assets are being used for commercial purposes, in this specific case in an amount not exceeding the value of monies still outstanding.

Russia: Swedish Judge Arrests State Assets

Oct 15, http://www.themoscowtimes.com/news/article/swedish-judge-arrests-state-assets/420264.html

A German businessman has claimed success in a multiyear effort to confiscate Kremlin property, saying a court in Stockholm has ordered an arrest on Russian state assets in Sweden.

Russia: Interros announces that Rusal's conduct has terminated the Cooperation Agreement

Oct 19, http://www.interros.ru/en/news/5006/

Interros believes that the publicity campaign waged by the United Company Rusal during the past few months against the shareholders, management and independent directors of OJSC MMC Norilsk Nickel ("Norilsk") is unjustified and aimed solely at furthering the interests of Rusal.

Russia: Moscow ruling slap in the face for TeliaSonera

Oct 14, http://www.swedishwire.com/business/6735-moscow-ruling-slap-in-the-face-for-teliasonera

AFP - A Moscow court on Thursday declared illegal the agreement between Nordic operator TeliaSonera and Moscow-based Altimo to merge their stakes in mobile phone operators Megafon and Turkcell.

Russia: Prosecutor says Khodorkovsky's guilt fully proven

Oct 14, http://www.itar-tass.com/eng/level2.html?NewsID=15589468&PageNum=0

Itar-Tass - The prosecutor for the state at the trial of former Yukos CEO Mikhail Khodorkovsky and former MENATEP director Platon Lebedev said their guilt had been fully proven during the inquest.

Russia: Statement by MMC Norilsk Nickel

Oct 8, http://www.nornik.ru/en/press/news/3062/

OJSC MMC Norilsk Nickel informs that in the statement of claim received today by the Company from its shareholder Gardenstate Holdings Limited, the claimant requests to declare invalid the decision made by the Board of Directors of MMC Norilsk Nickel on September 23, 2010.

The following points are included in the claimant's petition filed with the Court of Arbitration of the Krasnoyarsk Territory:

1. Deem unlawful the actions of LLC UC RUSAL Investment Management related to the submission of two essentially different copies of their charter with the same reference information (date, registration No.) and certified by the same public notary;

2. Deem invalid the decision made by the Board of Directors of MMC Norilsk Nickel on September 23, 2010.

Both MMC Norilsk Nickel and LLC UC RUSAL Investment Management will act as defendants in the law suit.

Russia: Worst Corporate Governance Case Since Yukos

Oct 12, http://www.themoscowtimes.com/opinion/article/worst-corporate-governance-case-since-yukos/419717.html

by Liam Halligan, chief economist and Denis Spirin, director of corporate governance at Prosperity Capital Management ... The dispute being referred to is highly technical, but a great deal is at stake for the future investment climate in Russia. That is why we're campaigning hard to resolve this serious injustice. In March 2008, Federation Council Senator Leonid Lebedev's Kores group bought a controlling stake in TGK-2, one of the generation companies spun off during the wholesale privatization and restructuring of the country's power sector. As such, Kores was legally required to offer to buy out TGK-2 minority shareholders at the same price at which they took majority control. Prosperity Capital Management, or PCM, tendered its shares, along with other Russian and international minorities. But by the time the proceeds were due, share prices had fallen. For over two years now, Kores has created legal diversions to avoid paying what it owes TGK-2 minorities - about $350 million. Kores initially obtained a court injunction, effectively by suing itself, which blocked the previously agreed buyback. PCM's appeals against this ridiculous ruling were repeatedly adjourned - often for months at a time - on flimsy technicalities. Last week, though, PCM finally met with some success when the courts decided that this injunction should be lifted. This was a significant victory for PCM and other TGK-2 minorities. ...

South Africa: State ready to fight Agri SA damages claim at top court

Oct 20, http://www.businessday.co.za/articles/Content.aspx?id=124258

... It wants to prove that the Mineral and Petroleum Resources Act did not violate the constitution, department director-general Sandile Nogxina said yesterday. The act, promulgated in 2004, vested ownership of mining rights in the state and required owners of old-order rights to apply to have them converted into new rights.

South Arica: ArcelorMittal SA ore dispute arbitration continues

Oct 23, http://www.steelguru.com/international_news/ArcelorMittal_SA_ore_dispute_arbitration_continues/171365.html

ArcelorMittal South Africa Limited said that arbitration continues in an attempt to settle a pricing dispute for iron ore from its main source of the steelmaking ingredient. It said a process is underway to appoint a third arbitrator.

Sri Lanka - Citibank oil derivative arbitration to start in Singapore

Oct 26, http://www.lankabusinessonline.com/fullstory.php?nid=2025320479

LBO - Arbitration proceedings of disputed oil derivative contracts between Sri Lanka's state-run run Ceylon Petroleum Corporation (CPC) and Citibank will start in Singapore on November 01, a top official said.

Switzerland and Germany sign double taxation agreement and declaration on the initiation of negotiations on tax matters

Oct 27, http://www.ch.ch/private/00987/00993/01160/index.html?lang=en&msg-id=35927

Today, Federal Councillor Hans-Rudolf Merz and the German Finance Minister Wolfgang Schäuble signed a joint declaration on the initiation of negotiations concerning tax issues between Switzerland and Germany. In addition, both ministers signed the revised DTA in accordance with the OECD standard during the meeting in Bern. By signing, Mr. Merz and Mr. Schäuble reaffirmed the willingness of both countries to further intensify cooperation in financial and tax matters and to strengthen long-term legal security.

Tanzania: Standard Chartered Attacks

Oct 13, http://www.africaintelligence.com/AEM/financial-operations/2010/10/13/standard-chartered-attacks%2C85757516-BRE-login

The latest complaint, on behalf of Standard Chartered Hong Kong, was submitted on Oct. 1.

Uganda: Tullow finally agrees to pay taxes

Oct 28, http://www.monitor.co.ug/News/National/-/688334/1041944/-/cluv0vz/-/

Tullow Oil has agreed to pay $400 million (Shs904 billion) as capital gains tax to Uganda, junior energy minister Simon D'Ujanga said in India yesterday, according to a report by Reuters. "We discussed it and it is resolved. Tullow is the one which is going to pay the taxes," the online news source quoted Mr D'Ujanga, as saying. Mr Jimmy Kiberu, the Tullow's spokesman in Uganda, declined to comment on the revelation. "At the moment, we are not in position to comment on this," he said in an interview yesterday. The government, Heritage Oil and Gas and Tullow have been engaged in an oil dispute over the $404 million (Shs911 billion) capital gains tax which Uganda lays claim to from a $1.5 billion deal between the two oil exploration firms.

Ukraine files lawsuit against Gazprom

Oct 12, http://www.newsbcm.com/doc/334

Prosecutor General of Ukraine appealed to the arbitration court of Moscow with letters of request in regard to the companies Gazprom and Naftogaz. As a third party were the Cabinet of Ministers and the Ministry of Fuel and Energy of Ukraine.

Oct 06, http://english.capital.gr/News.asp?id=1061236

ArcelorMittal on Wednesday said it can't exclude the possibility that a Ukrainian court hearing next week could become the start of a process to illegally seize the steelmaker's multi-billion-dollar investment in the Ukrainian Kryviy Rih steel plant.

Ukraine: Cadogan Petroleum plc: Formal resolution of Pirkovskoe and Zagoryanska licence issues

Oct 18, http://www.cadoganpetroleum.com/cadogan/investor/rns/rnsitem?id=3753887

Further to the announcement made on Monday 13 September, the Board of Cadogan Petroleum plc ("Cadogan") is pleased to confirm that the Higher Administrative Court of Ukraine ("the Court") has formally approved the terms of the previously announced settlement agreement entered into by Cadogan with NSJC Nadra Ukraine ("Nadra") and its subsidiary company Poltavanaftogazgeology ("PNGG"). The Ministry of Environmental Protection and the State Geoservice were also parties to this approval. As a result, the Court has discontinued the case between PNGG and Nadra over the previous ownership of the licence for the Pirkovskoe field. The approval of the Court was a pre-condition of the settlement agreement and now enables Cadogan and Nadra to finalize the full sale and purchase agreement for the wells on the Zagoryanska license, as previously announced. This sale and purchase agreement contains conditions precedent that require the parties to withdraw or terminate all legal actions against each other with respect to the Pirkovskoe and Zagoryanska licenses.

Ian Baron, Cadogan's CEO stated "The approval of this agreement by the Court confirms full support for settlement of all currently outstanding matters with respect to Cadogan's licenses. We now look forward to developing our business in Ukraine and continuing our cooperation with the State Authorities in a transparent and mutually beneficial manner."

Ukraine: Is Ukraine's biggest foreign investment now safe?

Oct 12, http://www.kyivpost.com/news/business/bus_general/detail/86035/

The Kyiv Economic Court on Oct. 12 withdrew a case against ArcelorMittal, Ukraine's biggest foreign investor, which had denounced the proceedings as an attempt to overturn the landmark privatization of a steel mill in 2005. The international storm of bad publicity may have had a lot to do with prosecutors ending their lawsuit.

Ukraine: Kyiv court prolongs arrest of Tymoshenko ally

Oct 15, http://www.kyivpost.com/news/politics/detail/86435/

Kyiv Court of Appeal has upheld a Pechersky District Court ruling extending the arrest of Ihor Didenko, the former first deputy chairman of Naftogaz Ukrainy, until November 10, his lawyer Ihor Stepanov has told Interfax-Ukraine.

United Arab Emirates-Burkina Faso: Etisalat secures victory in dispute over Telecel Faso

Oct 7, http://www.telegeography.com/cu/article.php?article_id=34663

United Arab Emirates-based telecoms company Emirates Telecommunications Corporation (Etisalat) has said it has won an arbitration dispute against Planor Afrique regarding its Burkina Faso unit Telecel Faso, Reuters reports.

US-China: LDK Solar Announces Arbitration Award

Oct 26, http://www.ldksolar.com/Press%20Release.html

LDK Solar Co., Ltd, a leading manufacturer of multicrystalline solar wafers and PV products, today announced that the International Court of Arbitration stated that the wafer supply contract entered into in October 2008 between LDK Solar and the Italy-based Helios Technology S.p.A (Helios) is valid and effective throughout its duration and at terms and conditions related to quantities and prices set forth therein.

The International Court of Arbitration also stated that by virtue of the arbitration proceedings Helios shall pay to LDK Solar an amount of approximately $31 million. To this amount interest of 8% shall be added from the date of the award until the effective payment as well as costs for the arbitration proceedings and lawyers' fees.

"We are pleased with the results of the arbitration proceedings," stated Xiaofeng Peng, Chairman and CEO. "LDK Solar looks forward to having a final resolution on this matter."

US: Affymax Announces Decision in Arbitration Against JNJ

Oct 6, http://www.investors.affymax.com/releasedetail.cfm?ReleaseID=515556

Affymax, Inc. today announced that it has received a decision from the arbitration panel reviewing its dispute against certain subsidiaries of Johnson and Johnson (JNJ). The panel has determined that Affymax and JNJ are co-owners of certain intellectual property, including U.S. patent numbers 5,773,569, 5,830,851, 5,986,047, among others related to erythropoietin receptor agonists. In addition, the ruling determined that JNJ is sole owner of JNJ's U.S. patent number 5,767,078 ('078) and certain other related patents and patent applications in Europe, Japan, Canada and Australia. ...

US: College of Commercial Arbitrators (CCA) Protocols Offer Steps to Reduce Arbitration Costs, Delay

Oct 11, http://www.adr.org/sp.asp?id=38547

The College of Commercial Arbitrators (CCA) recently released the "Protocols for Expeditious, Cost-Effective Commercial Arbitration," a major document that examines how to keep arbitration from becoming as slow and costly as litigation and offers action steps to help reduce arbitration costs and delay.

The protocols consist of four documents: one protocol each for business users and in-house counsel, arbitrator providers, outside counsel, and arbitrators. The documents resulted from the CCA's National Summit on Business-to-Business Arbitration held on Oct. 30, 2009, in Washington, D.C.

The CCA is encouraging the widest use of the protocols and hoping that the documents will "prompt adoption of effective measures to dramatically reduce process costs and delay, restoring arbitration to its rightful place as a valuable and efficient alternative to litigation in the resolution of business disputes."

...

While the protocols are distinct, they share a number of overarching principles. The following is a summary of the principles:

• Be deliberate and proactive. Promoting economy and efficiency in arbitration depends first and foremost on deliberate, aggressive action by stakeholders.
• Control discovery . Arbitration providers should offer meaningful alternative discovery routes that the parties might take; the parties and their counsel should strive to reach pre-dispute agreement with their adversary on the acceptable scope of discovery, and arbitrators should exercise the full range of their power to implement a discovery plan.
• Control motion practice. Recognizing whether in a particular case a substantive motion would advance the goal of lower cost and greater efficiency is among the most challenging tasks the protocols present to the constituencies; they aim to promote cooperation and close consideration of the role a motion might play.
• Control the schedule. It is critical to place presumptive time limits on activities in arbitration, coupled with "fail safe" provisions that ensure the process moves forward in the face of inaction by a party.
• Use the protocols as tools, not a straitjacket. The parties and their counsel are encouraged to embrace those elements of the protocols that are most appropriate to their circumstances.
• Remember that arbitration is a consensual process. The protocols aim to meet the diverse settings in which cases arise, recognizing that the prescribed behavior ultimately cannot be imposed but can only be encouraged, in a context where the constituencies' efforts permit formulation of the best plan for the particular case.

Thomas J. Stipanowich, William H. Webster Chair in Dispute Resolution and law professor at Pepperdine University, edited the protocols, along with Curtis E. von Kann, CCA president, and Deborah Rothman, a full-time arbitrator and mediator.

The CCA was established in 2001 to promote the highest standards of conduct, professionalism, and ethics in commercial arbitration; to develop "best practices" guidelines and materials; and to provide peer training and professional development.

For more information about the CCA and the protocols, go to: http://www.thecca.net/

US: Faster, cheaper arbitration sought. It can be as lengthy, costly as a jury trial

Oct 25, http://www.post-gazette.com/pg/10298/1097299-499.stm

Arbitration, once hailed for the cost savings, speed and privacy it provided large companies facing complex litigation, has taken its knocks from litigators who say the alternative form of dispute resolution has become just as expensive and lengthy as a jury trial, only without the ability to appeal a bad ruling.

US: GTC Biotherapeutics Reports

Oct 27, http://www.marketwatch.com/story/gtc-biotherapeutics-reports-third-quarter-2010-financial-results-2010-10-27?reflink=MW_news_stmp

... The decrease in the net loss for the first nine months of 2010 is primarily a result of the recognition of the approximately $8.7 million of (non-cash) revenue under the Lundbeck agreement referred to above, as well as the award of approximately $4.1 million to GTC from LEO Pharma (of which approximately a $3.8 million gain was recorded as other income in the second quarter) in the International Chamber of Commerce (ICC) arbitration proceeding we brought against LEO Pharma and the recognition of deferred revenue of approximately $4.4 million in the second quarter as a result of that arbitration decision.

US: J.R. hits a gusher: $11.5M arbitration award

Oct 10, http://www.investmentnews.com/article/20101010/REG/310109952

The claim stemmed from unspecified securities in accounts he controlled and the purchase of a life insurance policy, according to the arbitration award.

On Oct. 6, a three-member Financial Industry Regulatory Authority Inc. panel awarded Mr. Hagman, two trusts in his name and two retirement accounts in his name the following: $1.1 million in compensatory damages and $440,000 in legal fees, as well as $10 million in punitive damages to be paid to a charity of his choice.

US: MDU Resources announces arbitration decision

Oct 20, http://www.mdu.com/News/Pages/NewsArticle.aspx?article=266

MDU Resources Group, Inc. said today that it will record a $16.5 million after-tax charge, or $.09 per share, in the third quarter as the result of a recent arbitration award against a subsidiary.

The company was notified October 15 of the Colorado arbitration award, which involves a disagreement regarding the terms of operation and pressure of a gathering system owned by Bitter Creek Pipelines, LLC, a non-regulated subsidiary of MDU Resources.

"We believe the decision is not supported by the underlying gathering agreement, and we will aggressively pursue all of our legal remedies to challenge the outcome of this decision," said Terry D. Hildestad, president and CEO of MDU Resources. "The incorrect interpretation of the gathering agreement that underlies the award reinforces our belief that this case should be determined in a court of law, rather than by an arbitration panel.

"Our company continues to have a strong long-term outlook. This arbitration award does not affect our financial strength. We continue to maintain a well-capitalized balance sheet with over $6 billion of assets, we generate good cash flow and we have access to significant liquidity. This charge does not affect our ability to reward investors through the continued payment of a competitive dividend, as well as take advantage of opportunities to invest and grow our company through organic projects and strategic mergers and acquisitions."

US: No end in sight to arbitration bonanza

Oct 14, http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20101014/FREE/101019944

Dozens of plaintiffs suing brokerage firms this month and last have seen a veritable gusher of multimillion-dollar awards - leaving some plaintiff's attorneys anticipating a continued stream of such arbitration rulings.

Venezuela draft oil law would make takeovers easier

Oct 19, http://www.reuters.com/article/idUSTRE69I44W20101019

Reuters - Venezuelan President Hugo Chavez's government is studying a draft law that would make it easier to nationalize the assets of oil field service companies working in South America's biggest crude exporter.

Oct 12, http://english.eluniversal.com/2010/10/12/en_eco_esp_expropriations-disma_12A4594971.shtml

The expropriation policy the Venezuelan government kicked off a few years ago continues, and it has been the tool to dismantle a production model that was primarily based on private capital.

Venezuela: Exxon Cuts PDVSA Arbitration Claim to $7 Billion

Oct 20, http://www.businessweek.com/news/2010-10-20/exxon-cuts-pdvsa-arbitration-claim-to-7-billion.html

Exxon cut the amount it seeks through international arbitration to $7 billion from $12 billion plus interest, PDVSA, as the company based in Caracas is known, said in a preliminary notice for an upcoming bond issue.

Venezuela: Oil Lubricants Firm Industrias Venoco nationalized

Oct 10, http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201010101911dowjonesdjonline000253&title=venezuelas-chavez-nationalizes-oil-lubricants-firm-venoco

Dow Jones - Venezuela President Hugo Chavez on Sunday announced the nationalization of Industrias Venoco, the country's largest independent auto lubricants company.

Venezuela: U.S. urges Venezuela to pay American glassmaker for expropriation

Oct 27, http://english.peopledaily.com.cn/90001/90777/90852/7178757.html

"We would expect Venezuela to provide prompt, adequate and effective compensation for any expropriation of the investments of Owens-Illinois in accordance with international law or any other private business present in Venezuela," said department spokesman Philip Crowley.

Venezuela: Update on O-I's Venezuelan operations

Oct 26, http://www.o-i.com/newsroom.aspx?id=9930

Late last night we learned of the Chavez administration's intention to expropriate O-I's operations in Venezuela. We were surprised to learn of this decision and we are prepared to work with government officials to better understand the situation.

O-I has been supplying glass food and beverage containers to meet the needs of the Venezuelan people for more than 50 years. Our two plants in Venezuela, located in Los Guayos and Valera, employ more than 1000 people and represent less than 5 percent of our global segment operating profit. We remain committed to complying with all laws and regulations.

October 27, 2010 - Owens-Illinois, Inc. (NYSE: OI), the world's largest maker of glass packaging, learned last night of the Chavez administration's intention to expropriate O-I's operations in Venezuela. The company was surprised to learn of this decision.

"As of this morning, we have not heard directly from the government," said Al Stroucken, O-I Chairman and CEO. "We learned the news as many others did, through television reports. We're prepared to work with government officials to better understand the situation. In the meantime, we're focused on continuing safe operations in the interests of our people and our customers."

O-I has been supplying glass food and beverage containers to meet the needs of the Venezuelan people for more than 50 years. The company's two plants, located in Los Guayos and Valera, employ more than 1000 people and represent less than 5 percent of our global segment operating profit.

Production at both plants continues uninterrupted at this time, and the company remains committed to comply with all laws and regulations. The company is monitoring the emerging situation and will provide updates as appropriate.

See http://www.o-i.com/uploadedFiles/Web_Site/O-I/Newsroom/Latest_News/Financial_News/OI_Press_Venezuela_20101026.doc

PODCASTS

IDN 95: Part III on the Expression of Emotions, Lying Without Detection

In the third of his three-part return visit to IDN, Clark Freshman-a professor at Hastings College of the Law and a consultant with the Paul Eckman Group LLC, both in San Francisco--returns to discuss how to detect when your adversary is lying.

EVENTS

UNCTAD-ESCWA Workshop on Bilateral Investment Treaties, 7–11 November 2010

Amman, Jordan, http://unctad.org/Templates/meeting.asp?intItemID=2068&lang=1&m=20608

This workshop is part of the UNCTAD-ESCWA joint project on strengthening capacities in the Economic and Social Commission for Western Asia to negotiate bilateral investment treaties (BITs).

The workshop -- which will be conducted in Arabic -- will identify key issues in international investment law, and will highlight challenges facing developing countries as a result of the complex network of BITs.

Commerce Group Corp. and San Sebastian Gold Mines, Inc. v. Republic of El Salvador (ICSID Case No. ARB/09/17) Public Hearing November 15

http://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&actionVal=OpenPage&PageType=AnnouncementsFrame&FromPage=Announcements&pageName=Announcement68

A hearing on preliminary objections in the above case will be transmitted live via internet feed on Monday, November 15, 2010 starting at 9:30 a.m. EST (U.S. Eastern Time). The live streaming is being made available pursuant to Article 10.21.2 of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA).

Visit the ICSID website for details.

Related:

Commerce Group Corp. and San Sebastian Gold Mines, Inc. v. Republic of El Salvador(ICSID Case No. ARB/09/17) Procedural Order Regarding Amici Curiae
In accordance with Article 10.20.3 of the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA-US) and ICSID Arbitration Rule 37(2), the Tribunal invites any person or entity that is not a Disputing Party in these arbitration proceedings or a Contracting Party to DR-CAFTA-US to make a written application to the Tribunal for permission to file submissions as an amicus curiae.

JOBS / MOVES

Villanova University Appoints John Yukio Gotanda as Dean of Law School

Oct 28, http://www.law.villanova.edu/Resources/News/October%202010/Announcing%20the%20New%20Dean.aspx

Villanova University President, the Rev. Peter M. Donohue, O.S.A., Ph.D., today announced the appointment of John Yukio Gotanda, J.D. as the Dean of the Villanova School of Law, effective January 1, 2011. Gotanda, a member of the Villanova community for 16 years, will serve as the sixth Dean of the Villanova Law School. This appointment is the conclusion of a national search, spearheaded by a committee of Villanova trustees, faculty, administrators, and alumni.

Australia: Former High Court chief takes new job

Oct 22, http://news.ninemsn.com.au/national/8111092/former-high-court-chief-takes-new-job

Former High Court chief justice Murray Gleeson is to chair a new judicial liaison committee as part of a move to attract more international commercial legal business to Australia. The committee, with members from supreme courts and the Federal Court, will aim to promote uniform arbitration procedures.

BOOKS

Handbook of UNCITRAL Arbitration: Commentary, Precedents and Models for UNICTRAL-Based Arbitration Rules

Thomas H. Webster
ISBN13: 9781847038982
ISBN: 1847038980
Publisher: Sweet & Maxwell Ltd
Country of Publication: UK
Binding: Hardcover

• Provides invaluable guidance to lawyers, arbitrators and appointing authorities involved in UNCITRAL Arbitration and reflects the various concerns from each perspective;
• Explains core principles behind the UNCITRAL Rules and examines how those principles have been applied;
• Reflects the hands-on experience of a renowned UNCITRAL arbitration practitioner;
• Reviews the UNCITRAL arbitration process from start to finish, examining each stage including the model arbitration clause, the constitution of the Tribunal, the conduct of arbitral proceedings, the weighing of evidence, and the form, effect and interpretation of the award;
• Includes commentary on BIT provisions relating to UNCITRAL investment arbitration;
• Includes the French Arbitration law of 2010;
• Links UNCITRAL Arbitration to the place of arbitration, giving the resources to handle any UNCITRAL arbitration in Model law countries, France, Switzerland, England or the US;
• Provides reference to relevant case law for each jurisdiction;
• The commentary on is based on review of over 80 UNCITRAL Awards, including many unpublished Awards;
• Draws on original research on issues such as national review of awards, allocation of costs, bifurcation and challenges of arbitrators.;
• Includes examples of key documents used throughout the arbitration process, from the Notice of Arbitration to the Award with a brief introductory comment for each;
• Includes a commentary on investment arbitration under the UNCITRAL Rules;
• Provides commentary for three typical Bilateral Investment Treaties (UK-Argentina, US-Ecuador and Netherland-Czech Republic) and examines key provisions of those treaties relating to arbitration;

ICSID

Standard Chartered Bank v. The United Republic of Tanzania (ICSID Case No. ARB/10/12)

Status of Proceeding: Respondent files a request for provisional measures on October 22, 2010

Tidewater Inc. and others v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/10/5)

Status of Proceeding: arbitrator furnishes explanations in regard to the proposal for disqualification in accordance with ICSID Arbitration Rule 9(3) on October 26, 2010

Convial Callao S.A. and CCI - Compañía de Concesiones de Infraestructura S.A. v. Republic of Peru (ICSID Case No. ARB/10/2)

Status of Proceeding: Respondent files a request for provisional measures on October 22, 2010)

Millicom International Operations B.V. and Sentel GSM S.A. v. Republic of Senegal (ICSID Case No. ARB/08/20)

Status of Proceeding: Tribunal holds a hearing on provisional measures in Paris on October 20, 2010

Mobil Investments Canada Inc. and Murphy Oil Corporation v. Canada (ICSID Case No. ARB(AF)/07/4)

Status of Proceeding: Tribunal holds a hearing on the merits in Washington, D.C. on October 19-22, 2010

The Rompetrol Group N.V. v. Romania (ICSID Case No. ARB/06/3)

Status of Proceeding: Claimant files observations on the Respondent’s statement of costs on October 22, 2010)

ABCI Investments N.V. v. Republic of Tunisia (ICSID Case No. ARB/04/12)

Status of Proceeding: Claimant files a response to the Respondent’s observations of October 13, 2010 on October 22, 2010

Fraport AG Frankfurt Airport Services Worldwide v. Republic of the Philippines (ICSID Case No. ARB/03/25)

Status of Proceeding: ad hoc Committee declares the proceeding closed inaccordance with ICSID Arbitration Rules 53 and 38(1) on October 22, 2010

Ahmonseto, Inc. and others v. Arab Republic of Egypt (ICSID Case No. ARB/02/15)

Outcome of Proceeding: The ad hoc Committee issues an order for the discontinuance of the proceeding for lack of payment of the required advances, pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e) on October 13, 2010.

International Quantum Resources Limited, Frontier SPRL and Compagnie Minière de Sakania SPRL v. Democratic Republic of the Congo (ICSID Case No. ARB/10/21)

Mining concessions, Registered October 22, 2010. Tribunal not yet constituted

Caratube International Oil Company LLP v. Republic of Kazakhstan (ICSID Case No. ARB/08/12)

Status of Proceeding: Pending (the tribunal issues a procedural order concerning questions of immunity on October 19, 2010

Railroad Development Corporation v. Republic of Guatemala (ICSID Case No. ARB/07/23)

Status of Proceeding: Pending (the Claimant files a response to Respondent's observations of October 15, 2010, on October 21, 2010

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

Registered October 18, 2010, Tribunal not yet constituted.

Reinhard Hans Unglaube v. Republic of Costa Rica (ICSID Case No. ARB/09/20)

Status of Proceeding: Claimant files a reply on the merits on October 15, 2010

Commerce Group Corp. and San Sebastian Gold Mines, Inc. v. Republic of El Salvador (ICSID Case No. ARB/09/17)

Status of Proceeding: Claimants file a rejoinder on preliminary objections under CAFTA Article 10.20.5. on October 15, 2010)

H&H Enterprises Investments, Inc. v. Arab Republic of Egypt (ICSID Case No. ARB/09/15)

Status of Proceeding: Claimant files a memorial on the merits on October 15, 2010

Pac Rim Cayman LLC v. Republic of El Salvador (ICSID Case No. ARB/09/12)

Status of Proceeding: Respondent files a memorial on jurisdiction on October 15, 2010

Marion Unglaube v. Republic of Costa Rica (ICSID Case No. ARB/08/1)

Status of Proceeding: Claimant files a reply on the merits on October 15, 2010

Vattenfall AB, Vattenfall Europe AG, Vattenfall Europe Generation AG v. Federal Republic of Germany (ICSID Case No. ARB/09/6)

Status of Proceeding: the suspension of the proceeding is extended on August 27, 2010

Railroad Development Corporation v. Republic of Guatemala (ICSID Case No. ARB/07/23)

Status of Proceeding: Respondent files a counter-memorial on the merits on October 5, 2010

Azurix Corp. v. Argentine Republic (ICSID Case No. ARB/03/30)

Status of Proceeding: suspension of the proceeding is further extended on October 4, 2010

Abengoa, S.A. y COFIDES, S.A. v. United Mexican States (ICSID Case No. ARB(AF)/09/2)

Status of Proceeding: Tribunal holds a first session by telephone conference on September 28, 2010

Giordano Alpi and others v. Argentine Republic (ICSID Case No. ARB/08/9)

Status of Proceeding: Claimants file a rejoinder on jurisdiction and admissibility on October 8, 2010

Burlington Resources, Inc. v. Republic of Ecuador (ICSID Case No. ARB/08/5)

Status of Proceeding: Claimant files a supplemental memorial on liability on September 29, 2010

Railroad Development Corporation v. Republic of Guatemala (ICSID Case No. ARB/07/23)

Status of Proceeding: Claimant files observations on the Respondent's request of September 21, 2010 on October 8, 2010

The Rompetrol Group N.V. v. Romania (ICSID Case No. ARB/06/3)

Status of Proceeding: Respondent files a statement of costs on October 9, 2010

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