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 #01, week 01. 17 January 2011
Prepared by TDM and Aloysius Gng (CEPMLP/Dundee)

TDM

TDM Recently published

Material added to the Legal & Regulatory database:

• Eurogas Inc. v Slovak Republic - Notice of Intent to Arbitrate (December 16 2010)
• Eurogas Inc. v Slovak Republic - Synopsis and Statement of Affairs (September 22 2008)
• Eurogas Inc. v Slovak Republic - Official Request (September 22 2008)
• Nations Energy Inc and others v Republic of Panama (ICSID Case No ARB/06/19) - Award, November 2010
  Award rendered on November 24, 2010; attached to the award is a dissenting opinion by Dr. José María Chillón Medina one of the arbitrators. (Spanish)
• Khan Resources Inc., Khan Resources B.V., and Cauc Holding Company Ltd. (Claimants) V. the Government of Mongolia and Monatom Co., Ltd (Respondents). Notice of Arbitration (January 2011)
  
• Sociedad Anónima Eduardo Vieira v. Republic of Chile (ICSID Case No. ARB/04/7) Decision on annulment (Dec 10, 2010)
  The Annulment Committee rejected the request for annulment of the Tribunal's Decision not to accept Jurisdiction. Available (in Spanish) at http://icsid.worldbank.org/

And see https://www.transnational-dispute-management.com/journal-advance-publication.asp

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

Algeria: Orascom Telecom sees arbitration on Algeria unit

Dec 28, http://www.reuters.com/article/idUSLDE6BR0N720101228

Orascom Telecom (OT) will seek international arbitration soon in a dispute with Algeria's government over the Egyptian company's unit Djezzy, OT's chairman was quoted as saying on CNBC Arabia TV's website.

See also "OTA Recieved Final Tax Reassessment for 2008/2009" http://www.orascomtelecom.com/files/media_Files/1893378572_Orascom Telecom Algeria received the Final Tax Reassessment for the years 2008 and 2009 amounting to USD230 Million.pdf

Belize: The $43 mil Muria arbitration decision

Dec 30, http://www.amandala.com.bz/index.php?id=10715

In one of his last judgments before his departure from Belize, Supreme Court Justice John Muria ruled that Government should pay BCB Holdings and its subsidiary, the Belize Bank, a $43 million arbitration award granted to the parties by the London Court of International Arbitration (LCIA) back in 2009.

Canada: IIROC announces changes to Arbitration Program

Jan 14, http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=D088F7A4F6D84FBFABB7BF61656B13C8&Language=en

January 14, 2011 (Toronto, ON) -- The Investment Industry Regulatory Organization of Canada (IIROC) Board of Directors has approved two significant changes to the IIROC Arbitration Program. Following consultation with stakeholders, IIROC is amending the Program by:

- Increasing the award limit to $500,000 from the previous limit of $100,000; and
- Giving investors the option to eliminate the arbitrator's discretion to award costs against a party, under certain conditions.

These changes are effective immediately for new cases.

Cape Verde Ratifies the ICSID Convention

Dec 28, http://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&actionVal=OpenPage&PageType=AnnouncementsFrame&FromPage=Announcements&pageName=Announcement78

Having signed the ICSID Convention on December 20, 2010, the Republic of Cape Verde deposited with the International Bank for Reconstruction and Development (the World Bank) an Instrument of Ratification of the Convention on December 27, 2010.

Pursuant to Article 75 of the ICSID Convention, the World Bank has notified all ICSID Convention signatory States of Cape Verde's ratification.

In accordance with its Article 68(2), the ICSID Convention will enter into force for Cape Verde on January 26, 2011.

CEDR: Launch of New Directions for Rules on Settlement in International Arbitration

Dec 20, http://www.cedr.com/news/?359

Last year CEDR launched it's Rules for the Facilitation of Settlement in International Arbitration (the Settlement Rules) - outline steps which Arbitral Tribunals (whether sole arbitrator or panel) are to take (and are not to take) with a view to facilitating settlement by the parties to an international arbitration proceeding.

China-Taiwan: ECFA dispute settlement mechanism in the works

jan 10, http://www.chinapost.com.tw/taiwan/national/national-news/2011/01/10/287019/ECFA-dispute.htm

TAIPEI, Taiwan - Negotiators from both sides of the strait will work on a dispute settlement mechanism under the economic cooperation framework agreement (ECFA), now that the historic trade document has been put in effect, the Central News Agency (CNA) reported yesterday.

Congo: FG Capital Management Ltd wins case against cash-strapped Congo

Dec 22, http://www.smh.com.au/business/vulture-fund-wins-case-against-cashstrapped-congo-20101221-194fj.html

A NEW YORK ''vulture fund'' has successfully sued one of the world's poorest nations in the NSW Supreme Court over a $US30 million debt related to a failed hydro-electricity project.

FG Hemisphere, now known as FG Capital Management Ltd, has succeeded in the suit against the Democratic Republic of Congo and its national electricity company, triggering the sale of more than $US30 million worth of shares in an undisclosed Australian mining company.

Croatia: Orco note on Croatian Deputy Prime Minister statement

Jan 10, http://www.orcogroup.com/media/orco-note-on-croatian-deputy-prime-minister-statement

Orco Property Group SA took note of Friday's press statement by Deputy Prime Minister Cobankovic that "a solution would be found" to the dispute concerning Orco's investment in Suncani Hvar. Orco last week filed a notice that is a first step to international arbitration between it and the Croatian Government under treaties with the Belgo-Luxembourg Union and France.

"Orco's experience unfortunately is that the business environment in Croatia is deteriorating rather than improving," said Marija Hrebac, Head of Orco's activities in Croatia. "Rather than attempt to promote private investment, the State Privatization Fund has ignored Orco's efforts to realize the potential of the Suncani Hvar development on the Croatian coast," she said. "Last week's developments - Head of the Privatization Fund refusing to give Orco more than 20 minutes for discussion before blocking important initiatives at the Suncani Hvar shareholders meeting and the police taking Orco's CEO into custody for hours after the meeting - are not signs of a Government that welcomes foreign investment."

Orco expressed cautious optimism with respect to the Deputy Prime Minister's suggestion of a meeting with company officials. "The company would like to avoid international arbitration and resolve the current disputes with the Government," Marija Hrebac said. "On the other hand, we have participated in many meetings with officials over the past months. We have as yet received nothing from the Government suggesting a new approach. We very much hope to see one."

Czech Republic at risk of facing new arbitration suit over CZK 12bn (Ekonom.cz)

Jan 4, http://praguemonitor.com/2011/01/05/ekonomcz-%C4%8Dr-risk-facing-new-arbitration-suit-over-czk-12bn

CTK Prague, Jan 4 (CTK) - The Czech Republic might face another costly arbitration suit as the firm Washington Investment Company LLC (WIC) has informed the Finance Ministry about the existence of the dispute, putting the amount of lost profit at Kc12bn, server Ekonom.cz said yesterday.

Czech Republic: Arbitration awards: The claims of the Ministry of Finance of the Czech Republic against CSOB are denied in full scope, CSOB J.Ring claim acknowledged

Dec 29, http://www.csob.cz/en/CSOB/Media-service/press-releases/Stranky/PR101229a.aspx

CSOB today obtained the arbitration award by which the claim of the Ministry of Finance from 2007 made against CSOB, concerning the guarantees provided during the takeover of the failing IPB. The Ministry enumerated this counter claim at 33,3 bn CZK.

The decision confirms the long-term position of CSOB, which was always convinced that the procedure during the bailout of the IPB business, including state guarantees, on which the state and CSOB agreed in 2000, was adequate to the situation and in accordance with the law. As a result, it managed to eliminate the risk threatening the entire banking sector in the Czech Republic.

From the start, CSOB therefore considered the claim of the Ministry of Finance as unsubstantiated and the arbitration board fully corroborated this.

"This was the last big dispute in connection with the takeover of the failing IPB in the year 2000. Judging from our current experience, we can say it was the correct move. It is also thanks to this that the Czech Republic has a stable and trustworthy banking sector. This was a legitimate step, which has been confirmed during these past ten years by all courts and other institutions, including, for example, the European Commission," said Pavel Kavanek, Chairman of the Board and General Manager of CSOB, in regard to the decision of the arbitrators. "Now, in many examples abroad, the financial crisis has shown that the bailout process, elected in the case of IPB, is standard and works successfully," he added..

At the same time, the claim of CSOB against the Ministry of Finance for the payment of the guarantee for the receivable of the former IPB for the company J.Ring in the amount of 1.6 bn CZK with associated costs was acknowledged through the arbitration award. CSOB never had doubts that the claim for payment of the guarantee for the receivable in question is based on contractual documentation. The arbitration board confirmed this opinion in its full scope. Ministry of Finance has also been ordered to pay the costs of arbitration.

The arbitration award is final and binding. CSOB was represented by Baker McKenzie law firm.

Information regarding the arbitration decision:

On the basis of state guarantees accepted in June 2000 within the framework of the bailout process of the IPB Company, CSOB in 2002 transferred to the Czech Consolidation Agency (CKA) the receivable of the former IPB from the former company J.Ring, among others. Subsequently in 2005, CKA returned this receivable to CSOB claiming legal defects and CSOB was forced to return payment to CKA. Under such a situation, however CSOB would bear the losses caused by the poor business practices and doubts on behalf of IPB, regardless of the fact that CSOB was in any way responsible for these. In such a case, the Ministry of Finance committed to pay out to CSOB the compensation CSOB would be required to return to CKA.

Whereas the Ministry of Finance refused to fulfil its obligation, CSOB filed a complaint against it for the payment of 1,6 bn CZK with associated costs to the Arbitration Court of the International Chamber of Commerce in Paris. Within the scope of the commenced arbitration, the Ministry of Finance then, in June 2007, brought a counter suit against CSOB for the payment of 33,3 bn CZK.

See also http://www.bloomberg.com/news/2010-12-29/csob-wins-arbitration-case-against-state-on-ipb-claims-update1-.html

Czech Republic: FinMin to file suit against former cabinet over CSOB

Dec 30, http://praguemonitor.com/2011/01/31/finmin-file-suit-against-contract-%C4%8Dsob

CTK - Finance Minister Miroslav Kalousek ordered to file complaint against all members of former cabinet of PM Milos Zeman, against Josef Tosovsky, the then Governor of the Czech central bank, and against bankruptcy administrator of the bankrupt bank IPB for lost arbitration with the CSOB bank.

Dubai International Arbitration Centre holds 4th successful open dialogue in Paris

Dec 28, http://www.ameinfo.com/252512.html

The Dubai Chamber of Commerce & Industry's initiative of the Dubai International Arbitration Centre organized its 4th Arbitration Dialogue in Paris recently. This second overseas arbitration dialogue and the fourth in a series held outside Dubai followed the success pattern of the earlier dialogues held in London last March.

Guyana seeks arbitration with Russian bauxite company after layoffs

Dec 31, http://www.amherstdaily.com/Canada---World/Business/2010-12-31/article-2083775/Guyana-seeks-arbitration-with-Russian-bauxite-company-after-layoffs/1

The Rusal company fired the workers in recent months and terminated an agreement with their union following several protests over pay and working conditions. Labour Minister Manzoor Nadir accused Rusal of unilaterally and illegally ending the agreement with the Guyana Bauxite and General Workers Union. He said he will order the company to compulsory, binding arbitration.

India-Bangladesh: Territorial tangle casts shadow on Santos' Bay of Bengal block

Dec 30, http://www.livemint.com/2010/12/30003549/Territorial-tangle-casts-shado.html?atype=tp

The Indian government plans to suspend the contractual obligations of Australian explorer Santos Ltd's subsidiary relating to its block in the Bay of Bengal because it has been unable to resolve a maritime boundary dispute with Bangladesh, said people familiar with the matter.

India-Norway: Sevan Marine ASA Files Notice of Arbitration Proceedings with Oil and Natural Gas Corporation, India ("ONGC")

Jan 12, http://www.sevanmarine.com/index.php/component/content/article/76-press-releases-2011/717-notice-of-arbitration-proceedings-with-oil-and-natural-gas-corporation-india-ongc-

Reference is made to a Firm Order dated 13 June 2008 between ONGC and Sevan Marine ASA (the "Company") for Charter Hire of an Ultra Deepwater Drilling Rig (the "Firm Order")

The Company has issued a Notice of Arbitration to ONGC, informing ONGC of its intention to resolve certain disputes between the Company and ONGC relating to the Firm Order by reference to arbitration.

In the arbitration, the Company is disputing ONGC's right to call on a Bank Guarantee for the sum of USD 15.9m and/or to receive monies under the Bank Guarantee on the grounds that ONGC has suffered no loss and/or that any loss suffered by ONGC does not amount to the sum of the Bank Guarantee.

The Company has filed a Petition with Indian courts seeking an order to restrain ONGC from invoking the Bank Guarantee until the disputes between ONGC and the Company are resolved by way of arbitration. ONGC will therefore not be able to invoke the Bank Guarantee until after the outcome of the Petition and any subsequent appeals.

Sevan will continue to make the appropriate announcements as and when it receives further updates on the matter.

India-Pakistan: Kishanganga - Nariman to battle it out with Pakistan

Jan 01, http://www.indianexpress.com/news/Kishanganga--Nariman-to-battle-it-out-with-Pakistan/731877

With Pakistan dragging India to international court of arbitration to resolve the dispute regarding the 330 MW Kishanganga Hydel project in Jammu and Kashmir, the government has started preparing for a legal battle with the first objective to stop Pakistan from getting any interim order or stay on Kishanganga project.

India-Pakistan: Kishanganga arbitration to start mid-Jan

Dec 25, http://www.indianexpress.com/news/Kishanganga-arbitration

Over six months after Pakistan decided to move an international court of arbitration to resolve the dispute over the 330-MW Kishanganga hydro-electric project in Jammu and Kashmir, a seven-judge Bench is slated to start the arbitration proceedings from January 14 in the Hague. Justice Stephen M Schwebel, who heads the Bench, is learnt to have written to India and Pakistan, asking them to start the proceedings.

India-Pakistan: UN court to hear Pakistan-India water dispute Friday, 14 January 2011 03:28

Jan 14, http://www.thepeninsulaqatar.com/pakistan/afghanistan/139014-un-court-to-hear-pakistan-india-water-dispute.html

ISLAMABAD: An international court of arbitration (COA) constituted by the United Nations will today take up in the Netherlands Pakistan's case against India for constructing a hydropower project on the Jhelum River in violation of the 1960 Indus Water Treaty.

...

See also http://www.deccanherald.com/content/129255/pak-bid-stall-kishenganga-power.html :

During the first hearing of the Kishenganga Arbitration Court in The Hague in The Netherlands, the Indian side put up a spirited argument for construction of the 330-MW project on Kishenganga, a tributary of the Jhelum river, sources said.

India: International Arbitration Centre to open on Jan 4

Dec 21, http://www.navhindtimes.in/goa-news/international-arbitration-centre-open-jan-4

The International Arbitration Centre, as promised by the Chief Minister, Mr Digambar Kamat in his Liberation Day speech, will be inaugurated on January 4, 2011

Iraq establishes special court to reassure foreign investors

Dec 28, http://dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=122952

Reuters - Iraq has set up its first dedicated court for investment and commercial lawsuits, a move designed to reassure foreign investors and attract them to the war-ravaged country, the head of the court said Monday.

Iraq: Gulf Keystone - Rejection of Legal Claims

Dec 29, http://ir2.bestex-quotes.com/ir/gulfkeystone/newsArticle.php?id=372631&ST=GKP

The Board of Gulf Keystone announces that Gulf Keystone and two of its subsidiaries (referred to for the purposes of this announcement only, as "the Companies") received notice on 23 December 2010 that an arbitration ("the NYC Arbitration") was commenced by Excalibur Ventures LLC ("Excalibur") in New York on 17 December 2010 asserting certain contractual and non-contractual claims against the Companies and claiming that Excalibur is entitled to an interest of up to 30% in the Companies' blocks in Kurdistan.

On 21 December, 2010, Excalibur applied without notice to the Companies to the Commercial Court in London for a "worldwide freezing injunction" against the Companies' assets, which was refused by the Commercial Court on the basis that the Judge did not consider there was a risk of dissipation of assets. Excalibur also commenced proceedings in the Commercial Court in London on 17 December 2010 on the same grounds as in the NYC Arbitration ("the Commercial Court Claim") in order allegedly to protect its position in relation to potential limitation of actions under New York and/or English law. The Companies received notice on 23 December 2010 of the claims, since which time they have been in consultation with their legal advisers.

The Companies dispute the allegations and claims asserted in the NYC Arbitration and the Commercial Court Claim and intend to vigorously contest them.

The Board of Gulf Keystone will provide further announcements in due course.

Commenting on today's developments, Todd Kozel, Chairman and CEO said:

"We believe we have very good grounds to vigorously challenge these claims in both the US and UK courts.

"We are confident of being able to defeat these claims in any legal jurisdiction and meanwhile, we remain focused on building upon our considerable operational success and continuing to prove the full value of our world class acreage."

Malaysia: New life for arbitration

Jan 01, http://biz.thestar.com.my/news/story.asp?file=/2011/1/1/business/7719437&sec=business

THE Kuala Lumpur Regional Centre for Arbitration (KLRCA) may have slid into irrelevance in the past but it seems to be enjoying a new life since March this year. That's when a new management team was given the task of kick-starting the KLRCA with the aim of becoming the preferred arbitration centre in Asia Pacific.

Mongolia: Khan Commences International Arbitration Against the Government of Mongolia

Jan 10, http://www.khanresources.com/investors/news/110110.pdf

TORONTO, ONTARIO, Canada, January 10, 2011 - Khan Resources Inc. (TSX: KRI) ("Khan") announced today that it has formally commenced an international arbitration action against the Government of Mongolia for its expropriatory and unlawful treatment of Khan in relation to the Dornod uranium deposit located in northeastern Mongolia. The Nuclear Energy Agency of Mongolia announced in November 2010 that it would not reinstate the licenses that the Company holds on the Dornod uranium property, but which the Government illegally cancelled so that it could pursue the project without Khan.

The arbitration, which is brought by Khan and several of its subsidiaries, will take place under the Arbitration Rules of the United Nations Commission on International Trade Law, and asserts claims under the Energy Charter Treaty, the Foreign Investment Law of Mongolia, and the Founding Agreement between Khan and the Mongolian Government. The claim has been today served on various officials of the Government of Mongolia.

The claim seeks over US$200 million in compensation for losses and damages.

An arbitration Tribunal of three will be appointed in the near future. Each side will appoint an arbitrator followed by the selection of president of the Tribunal by the two appointed arbitrators. Mr. L. Yves Fortier, Canada's former Ambassador to the United Nations, has agreed to be Khan's appointment to the Tribunal. Mr. Fortier is a senior and highly respected member of the international arbitration community with over 30 investor-state arbitrations to his credit. The Government of Mongolia has 30 days to appoint their arbitrator.

Crowell & Moring, a highly-experienced Washington, D.C. based law firm, will represent Khan in this matter.

Mr. Grant Edey, President and CEO of Khan, commented "We are disappointed that the Government of Mongolia has left us no alternative other than international arbitration. The Nuclear Energy Agency of Mongolia continues to falsely denounce us in Mongolia while simultaneously entering into an agreement with ARMZ of Russia for the development of the Dornod deposit, thereby excluding Khan of its rightful interests. We have a very strong case of expropriation without compensation which is illegal under the various laws governing this matter. We intend to vigorously press the process to its conclusion and ensure that Khan's rights under International Law and Mongolian Law are fully vindicated".

Note: The Notice of Arbitration served against the Government of Mongolia is available on TDM, https://www.transnational-dispute-management.com/legal-and-regulatory-detail.asp?key=4513

Peru: Renco Group Files Notice of Intent to Commence International Arbitration - Government of Peru's Actions Toward Doe Run Peru Said to Violate Trade Treaty Between United States and Peru

Jan 5, http://www.rencogroup.net/press01052011.php

On December 29, 2010, The Renco Group, Inc., on its own behalf and on behalf of its affiliate Doe Run Peru S.R.L., served the Republic of Peru with a Notice of Intent to Commence an International Arbitration Proceeding under the Trade Promotion Agreement between the United States of America and the Republic of Peru, which entered into force between the two countries on February 1, 2009 (the "Treaty"). Renco's complaint stems from the government of Peru's failure to honor its legal obligations under international law, the Treaty, and the investment contract between the Republic of Peru, Doe Run Peru, and U.S. investors with respect to the substantial investment that Renco has made in La Oroya, Peru. This includes the government of Peru's refusal to clean the soil in and around La Oroya as it legally committed and promised to do, and the government's improper refusal to assume full responsibility for legal claims brought by certain citizens of La Oroya.

The Treaty is a bilateral free trade agreement. Its general objectives include eliminating obstacles to trade and fostering private investments in Peru by investors from the United States, as well as fostering private investments in the United States by Peruvian investors. To encourage this reciprocal investment, the Treaty provides international protection to the investors from each country. Among the protections that the Treaty guarantees are the rights to receive fair and equitable treatment, full protection and security, and compensation for expropriation. When an investor believes that it is being treated unfairly by the host country, as Renco does, the Treaty allows the investor to bring an international arbitration proceeding directly against the government of the other country to remedy the wrongdoing. And that is what Renco has put in motion by serving the Republic of Peru with the Notice of Intent to Commence an International Arbitration Proceeding. If the government of Peru does not honor its obligations or reach a negotiated settlement with Doe Run Peru and Renco within 90 days, Renco currently intends to commence a formal international arbitration proceeding against the government of Peru under the Treaty pursuant to the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL).

For over two decades, from 1974 to 1997, the government of Peru's State-owned entity Empresa Minera del Centro del Per_ S.A. ("Centromin") owned and operated the La Oroya Metallurgical Complex (the "Complex"). During that time, Centromin conducted its operations with little focus on the environment or the concerns of the people of La Oroya, and its operations (together with those of its predecessors) resulted in gaseous and particle emissions that impacted the soil in and around the town of La Oroya with heavy metals, including lead. In 1997, the consortium of U.S. investors purchased the Complex and thereafter transferred it to their affiliate, Doe Run Peru. As a critical inducement to encourage the U.S. investors to purchase the Complex in light of these substantial pre-existing environmental impact issues, Centromin and the Republicof Peru contractually committed themselves to clean up the town of La Oroya, and also accepted and assumed all liability for any and all claims that third parties might bring while the new owners worked to improve the Complex through environmental projects. In other words, under the terms of the investment contract, Doe Run Peru was committed to improving the Complex so that its future environmental impact was reduced, while Centromin and the government of Peru agreed to clean up the town of La Oroya and to accept liability for all potential third-party claims going forward-for the period during which Doe Run Peru would be implementing its environmental projects, and subsequent thereto. This commitment by the government of Peru is reflected in the contract of sale dated October 23, 1997.

Doe Run Peru is in compliance with its obligations to complete various environmental projects. In fact, Doe Run Peru has exceeded its contractual obligations and has made significant additional investments to improve conditions in the La Oroya community. In contrast, Centromin, its successor Activos Mineros, and the government of Peru have refused to remediate the soil in and around the town of La Oroya. They also have refused to accept responsibility for the claims brought by the citizens living in and near the town of La Oroya who claim various injuries resulting from alleged lead exposure and environmental contamination from the Complex.

The government of Peru has subjected Renco and Doe Run Peru to a pattern of unfair and inequitable treatment and has failed to afford them full protection and security, in violation of international law and the government of Peru's obligations under its Treaty with the United States. Dennis Sadlowski, Vice President -- Law, of The Renco Group stated: "We have been working very hard to engage the Peruvian authorities in negotiations to achieve a solution for the benefit of everyone concerned with this important issue. But to this point, the Peruvian authorities have refused to engage in such discussions, forcing Renco and Doe Run Peru to assert their rights by taking the first step toward the commencement of international arbitration proceedings. Nevertheless, both Renco and Doe Run Peru renew their commitment to achieving a solution to this controversy, as well as to continue investing in Peru, and contributing to the welfare of the population of La Oroya, the Central Region and the Country."

Philippines: Aquino: Govt will settle its row with Fraport legally

Jan 6, http://www.gmanews.tv/story/209926/aquino-govt-will-settle-its-row-with-fraport-legally

President Benigno "Noynoy" Aquino III said the Philippine government will resolve through legal means its dispute with the German transport company Fraport AG on the Ninoy Aquino International Airport (NAIA) Terminal 3 issue.

Philippines: Fraport wins NAIA 3 appeal

JAn 3, http://www.abs-cbnnews.com/business/01/03/11/philippine-govt-loses-naia-3-appeal

An international tribunal has favored German firm Fraport AG in a case involving its reimbursement claim for its $425-million investment in NAIA-3, an international airport terminal facility in Manila. ... According to abs-cbnNEWS.com sources intimately familiar with the case, the new decision favored Fraport which asked for the annulment of a previous ICSID decision that set aside Fraport's $425 million claim from the Philippine government.

Philippines: German envoy wants to revive negotiations on NAIA 3

Jan 3, http://www.abs-cbnnews.com/business/01/04/11/german-envoy-wants-revive-negotiations-naia-3

Germany's ambassador on Tuesday urged the Aquino administration to put an end to the ownership dispute over the Ninoy Aquino International Airport Terminal 3 (NAIA 3) by reviving negotiations among the parties involved in the case. In a statement, German Ambassador Christian-Ludwig Weber-Lortsch said the legal battle over the Manila airport terminal could run for years, "leaving the infrastructure project shelved by lawyers instead of being finished by engineers."

Philippines: Palace loses NAIA 3 case, but insists it owns airport

Jan 3, http://www.mb.com.ph/articles/296234/palace-loses-naia-3-case-insists-it-owns-airport

The Philippine government still owns and operates the Ninoy Aquino International Airport (NAIA) Terminal 3 despite losing an arbitration case in Washington DC, Malacañang said Monday. Presidential Spokesman Edwin Lacierda said the decision of an Ad Hoc Committee in Washington which reportedly cleared the airport builders of charges of violating the antidummy law was "more procedural than substantive."

Philippines: Palace says ruling has no effect on expropriation

Jan 4, http://www.malaya.com.ph/jan04/busi5.html

Malacañang yesterday said the government's expropriation and the full operation of the NAIA Terminal 3 this year will not be affected by a reported decision of an ad hoc committee in Washington vacating an earlier ruling that dismissed Fraport AG's compliant against the government.

Qatar Ratifies the ICSID Convention

Dec 22, http://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&actionVal=OpenPage&PageType=AnnouncementsFrame&FromPage=Announcements&pageName=Announcement77

On December 21, 2010, State of Qatar deposited with the International Bank for Reconstruction and Development (the World Bank) an Instrument of Ratification of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention).

Pursuant to Article 75 of the ICSID Convention, the World Bank has notified all ICSID Convention signatory States of Qatar's ratification.

In accordance with its Article 68(2), the Convention will enter into force for Qatar on January 20, 2011.

Republic of Georgia Holds Israeli Businessman on $100 Million 'Ransom', Says Jailed Man's Law Firm, Gornitzky & Co

Jan 12, http://www.dailyfinance.com/article/republic-of-georgia-holds-israeli/1508886/

PR Newswire - Georgian authorities are proceeding with the trial of Israeli businessman Rony Fuchs, who has been held without bail in Tbilisi, the capital of the republic of Georgia, since Georgian authorities arrested him on October 14. Mr. Fuchs is little better than a hostage; he has been told he can only be released if he waives a $100 million arbitration award issued by an independent international arbitration panel in favor of Mr. Fuchs and his business partner and against Georgia, says Pinhas Rubin, a senior lawyer at Gornitzky & Co, the Israeli firm representing Mr. Fuchs and his family.

Rusal Files Lawsuits, Seeks to Halt Norilsk's Buyback

Jan 14, http://www.businessweek.com/news/2011-01-14/rusal-files-lawsuits-seeks-to-halt-norilsk-s-buyback.html

Bloomberg -- United Co. Rusal filed lawsuits in Russia as it seeks to stop OAO GMK Norilsk Nickel's planned share buyback. Rusal's investment-management company filed a suit at the Krasnoyarsk arbitration court in Siberia against Norilsk and affiliates asking that the repurchase "be declared invalid," the court said in a statement on its website. One of the suits also sought the end to a planned share transaction involving Trafigura Beheer BV, the court said, without elaborating.

Russia's MTS Loses Appeal Over Kyrgyzstan Dispute - Ad Hoc Notice

Jan 11, http://www.mtsgsm.com/news/2011-01-11-28562/

Moscow, Russian Federation - Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that an international arbitration tribunal ( "Tribunal") constituted under the rules of the London Court of International Arbitration ("LCIA") has rejected application of MTS' wholly owned subsidiary, MTS Finance S.A. ("MTS Finance"), to correct an award it issued on November 11, 2010 with regards to arbitration commenced by Nomihold Securities Inc. ("Nomihold") in early 2007. Accordingly, the award stating that MTS Finance is required to honor Nomihold's option to sell MTS Finance the remaining 49% stake in Tarino Limited for $170 million, plus interest, $5.88 million in dividends that Tribunal ruled were payable to Nomihold under the option agreement, and to compensate it for related costs, is now a final award. MTS Finance is currently considering its legal options.

As previously disclosed by MTS, MTS Finance acquired a 51% stake in Tarino Limited from Nomihold at the end of 2005. Tarino Limited was believed at that time to be the indirect owner, through its 100% owned subsidiaries, of Bitel, a Kyrgyz GSM mobile phone operator. In March 2007, MTS wrote off the costs relating to the acquisition of Bitel in the amount of $150 million and a liability of $170 million was recorded with an associated charge to non-operating expenses to account for potential liability with respect to the option for the remaining 49% of Tarino, as noted in MTS annual financial statements for year ended 31 December, 2006.

Russia-Turkmenistan: MTS Presses Charges Against the Turkmen Ministry

Dec 29, http://www.tradingmarkets.com/news/stock-alert/jsfcy_russia-s-mts-presses-charges-against-the-turkmen-ministry-1391529.html

MTS Company filed few lawsuits on illegal suspension of license of its Turkmen subsidiary Barash Communications Technologies, Inc. (BCTI), RIAN reports. The suit was filed in the International court of Arbitration under International chamber of commerce (on the number of violations in the trilateral agreement by the Turkmen Ministry of Communication) and Turkmen Court of Arbitration (on suspension of BCTI license). In its turn, BCTI filed a lawsuit in the International court of arbitration against TurkmenTelecom and Altyn Asyr (Turkmen state-owned telecommunication operators) in concern with unreasonable termination of contracts with BCTI on their side.

Russia: Khodorkovsky, Lebedev found guilty of embezzlement in second trial

Dec 27, http://en.rian.ru/russia/20101227/161947823.html

Former oil tycoon Mikhail Khodorkovsky and his business partner Platon Lebedev were declared guilty at the culmination of their second new trial in Moscow's Khamovniki court on Monday.

See also http://www.khodorkovskycenter.com/news-resources/stories/khodorkovsky-defense-team-statement-verdict

Russia: Win for Yukos Shareholders

Dec 24, http://www.themoscowtimes.com/news/article/win-for-yukos-shareholders/427813.html

In a landmark case, the Arbitration Institute of the Stockholm Chamber of Commerce has fined the Russian government $3.5 million in damages, to be paid to Yukos shareholder RosinvestCo UK Ltd., Vedomosti reported Thursday.

Saudi company wins KBR ruling over work in Iraq

Dec 29, http://www.chron.com/disp/story.mpl/business/7358377.html

Tamimi Global Co. has won a $35 million arbitration award in London against Houston-based KBR for work it says it did in Iraq, according to court documents filed in Houston.

Singapore: Otto Marine Blocks Client From Refund (ST)

Dec 28, http://ottomarine.listedcompany.com/news.html/id/235612

MAINBOARD-LISTED Otto Marine has won a temporary High Court injunction to prevent a Norwegian client from seeking a refund for a vessel it had ordered from Otto. Otto said yesterday that the injunction, against Norway's Mosvold Supply, was obtained by its wholly owned unit Otto Offshore, pending an arbitration hearing on the dispute.

Mosvold Supply had ordered four anchor handling tug supply vessels to be built and delivered by Otto. The first two anchor handlers cost US$78 million (S$102 million) each, the third cost US$82.5 million, and the last US$84.5 million, reports said.

Mosvold cancelled the first vessel order on May 18, and under the terms of the contract it was entitled to a refund of its deposit and interest accrued. Mosvold had indicated earlier that Otto was unlikely to be able to complete the second vessel in time, according to a DMG Research analyst report this month.

The report also said that Mosvold would have a problem paying the remaining payable amount of US$54 million. Mosvold had a cash balance of US$5.7 million as of the end of September, according to the report.

The second vessel was to have been delivered yesterday, but The Straits Times understands that this did not happen.

Instead, Otto said last week that it had filed and served on Mosvold a notice of arbitration over the vessel, saying there were disputes over its delivery date.

As agreed in the contract, the dispute must now go before the Singapore International Arbitration Centre.

In yesterday's announcement, Otto Marine also said that the High Court had granted an injunction against Norsk Tillitsmann, a Norwegian supplier of financial agreement trustee services, restraining it from making any calls on the refund. Norsk Tillitsmann is the assignee of the refund guarantees in the contract between Otto and Mosvold.

In a statement to the Singapore Exchange last week, Otto said it was 'seeking a declaration that the delivery date be postponed, adjusted, open ended or alternatively at large, and other further relief as may be appropriate'.

The Straits Times understands that in these vessel transactions, 30 per cent is first paid as a deposit and the rest is paid on delivery.

Otto Marine owns a 4.15 per cent stake in Mosvold Supply, according to Bloomberg data. Otto Marine's counter yesterday closed one cent higher at 34 cents.

Slovak Republic: EuroGas files Notice of Intent to Arbitrate an Investment Dispute with the Slovak Republic in the amount of Euro 500 Millions

Jan 12, http://www.eurogasinc.com/news_en_64.html

Claims EUR 500,000,000 in Compensation in Connection With the Alleged Illegal Expropriation of Gemerska Poloma Talc Deposit

NEW YORK, NY, Jan 12, 2011 -- EuroGas, Inc. (EuroGas) today announced that, with regards to the Gemerska Poloma talc deposit, that EuroGas GmbH, a EuroGas affiliate, has filed a Notice of Intent to Arbitrate with the Slovak Republic and is claiming compensation of EUR 500,000,000 for the alleged unlawful, collusive taking, and denial of rights and equal protection, pursuant to the Austrian-Slovak Bilateral Investment Treaty and applicable European Union laws.

(The Slovak Republic is a full member of the European Union, using the euro as its currency.) The amount claimed is based on the multi-million dollar investment made by EuroGas in the Gemerska Poloma Talc Deposit as well as an estimated amount of net value capitalized over years for the mineable proven and probable reserves of the Gemerska Poloma deposit which ranks amongst the largest and purest ore bodies of its kind in the world.

EuroGas GmbH, based in Vienna, Austria,is being represented in this action by Freygner Barristers & Solicitors and Freygner Consulting with offices at Vienna, Brussels, Kiev and Sarajevo. EuroGas GmbH owns a 33% interest in Rozmin s.r.o., the company from which the Gemerska Poloma Talc Deposit was allegedly illegally expropriated in 2005, a fact that was affirmed by the non-appealable decision of the Supreme Court of the Slovak Republic, a decision which EuroGas announced on April 24, 2008. EuroGas GmbH has made numerous attempts over the past few years to initiate discussions to remedy the situation (with the previously elected government in the Slovak Republic) and has never received a response to its communications.

EuroGas has agreements to purchase 90% of Rozmin; the remaining 10% interest in Rozmin is held by a German private investor who is a non-affiliate of EuroGas. EuroGas, Inc. reserves the right to pursue its own separate legal remedies with respect to the unlawful expropriation of the Gemerska Poloma Talc Deposit.

"While our intent remains to get back the Gemerska Poloma deposit which is rightfully ours -- a fact that has been affirmed by the Slovak Republic Supreme Court -- we are obliged to file this Notice of Intent to Arbitrate against the Slovak Republic in order to protect our assets," said Wolfgang Rauball, Chairman and CEO, EuroGas and Managing Director of EuroGas GmbH Vienna. Mr. Rauball added, "Our company and its shareholders have suffered for five years as a result of a blatant, illegal expropriation of a significant asset and we can no longer wait politely lest this be interpreted as an acceptance of the status quo; we will not rest until we regain the Gemerska Poloma Talc Deposit."

EuroGas Inc. has an agreement to purchase a 57% interest in Rozmin s.r.o. from Belmont Resources Ltd, subject to receipt of a last final purchase price payment in the amount of approximately $ 1,000,000. The remaining interests in Rozmin are held by and registered in the name of EuroGas Austria GmbH, a wholly-owned subsidiary of McCallan Oil & Gas (UK) Ltd., which owns a 33% interest in Rozmin; EuroGas recently announced that it had entered into agreements to acquire up to a 100% interest in McCallan Oil & Gas (UK) Ltd., which would give it effective ownership of a 90% interest in the deposit. The remaining 10% interest is held by a private German investor.

Rozmin s.r.o. is a closely held Slovak mining company which controls the massive Gemerska Poloma talc deposit with an estimated 150 million ton carbonate reserve in Eastern Slovakia. The talc deposit Gemerska Poloma, named after the village where it was discovered in Eastern Slovakia, is one of the largest talc deposits worldwide. The carbonate type deposit and resulting purity of the valuable mineral enhances the efficiency of the beneficiation process and allows a higher purity to be attained in the final project. EuroGas intends to bring the Gemerska Poloma deposit into commercial production.

• Eurogas Inc. v Slovak Republic - Notice of Intent to Arbitrate (December 16 2010)
• Eurogas Inc. v Slovak Republic - Synopsis and Statement of Affairs (September 22 2008)
• Eurogas Inc. v Slovak Republic - Official Request (September 22 2008)

South Korea: Yongin transit project in jeopardy

Jan 12, http://joongangdaily.joins.com/article/view.asp?aid=2930863

... The cancellation of the project could even lead to an international legal dispute - one of the investors is Canada's Bombardier Advanced Rapid Transit. If Yongin doesn't pay the company, it will likely file a lawsuit with the International Court of Arbitration under the International Chamber of Commerce, a Paris-based dispute resolution tribunal. Legal experts say it could take over a year to resolve the issue.

Taiwan: Cabinet approves new arbitration mechanism for financial disputes

Jan 7, http://www.chinapost.com.tw/taiwan/national/national-news/2011/01/07/286681/Cabinet-approves.htm

The Cabinet yesterday approved a draft financial consumer protection bill proposed by the Financial Supervisory Commission (FSC), under which the government will set up a special mediation mechanism to settle disputes between clients and financial institutions. The draft bill clearly prohibits providers of financial services from using any misleading, false or fraudulent means to advertise their service products, solicit patronage from clients or launch marketing campaigns.

Tanzania: Attorney General Frederick Werema: Tanzania cannot avoid paying Dowans

Dec 28, http://thecitizen.co.tz/component/content/article/37-tanzania-top-news-story/6685-ag-tanzania-cannot-avoid-paying-dowans.html

Dar es Salaam. Tanzania must accept the consequences of its actions and decisions in the Tanesco-Dowans saga, Attorney General Frederick Werema said yesterday. Mr Werema told The Citizen that there was no hidden agenda or malice in the verdict passed by the International Chamber of Commerce (ICC), which last month ordered Tanzania Electric Supply Company to pay Dowans Holdings SA and Dowans Tanzania Limited Sh186 billion for breach of contract.

"I have gone through the verdict and concluded that the tribunal's decision was fair. It was we Tanzanians who made the decision to unilaterally terminate the Dowans contract, so we must be ready to live with the consequences of our actions," he said. The AG, who is the government's chief legal adviser, said he had forwarded his recommendations to the Energy and Minerals minister. However, Mr William Ngeleja could not be immediately reached for comment.

Turkey: Turkcell says court suspends 279 mln-lira tax fine

Dec 22, http://www.turkcell.com.tr/c/docs/announcements/announcements_20101222_fass_Treasury_share.pdf

On December 7, 2010, Turkcell announced that the Information and Communication Technologies Authority's ("The Authority") had asked Turkcell to make a payment of TRY279 million. This figure comprises a TRY73 million Treasury Share payment - as per the claim that Turkcell underpaid its Treasury Share between March 10, 2006 and December 31, 2008 - and a related fine of TRY206 million based on this amount.

At the same time, we stated that Turkcell had pending court cases at the ICC International Court of Arbitration in regards to some of the items referred to by The Authority's announcement and that we would take further legal actions with respect to the remaining items, which we believed to have no legal ground.

In this context, Turkcell applied to the Ankara Court of First Instance for an injunction to stop the payment requested by The Authority and the Ankara Court of First Instance decided for an injunction on The Authority's decision until the pending and potential court cases on ICC International Court of Arbitration are resolved.

Turkmenistan: Mobile TeleSystems (MTS) goes to court over Turkmen licence suspension

Dec 21, http://www.mtsgsm.com/news/2010-12-21-28536/

Mobile TeleSystems OJSC, the leading telecommunications provider in Russia and the CIS, announces that the Company has suspended its operations in Turkmenistan in accordance with the notice from the Ministry of Communications of Turkmenistan received by MTS on December 15, 2010. The notice informed the Company of a decision to suspend licenses held by Barash Communications Technologies, Inc. ("BCTI"), MTS' wholly-owned subsidiary in Turkmenistan, for a period of one month starting from December 21, 2010.

The Company has brought legal actions against the Ministry of Communications of Turkmenistan in the International Court of Arbitration at the International Chamber of Commerce in connection with a number of breaches by the Ministry of the trilateral agreement1 ("Agreement") and in the Arbitration Court of Turkmenistan in connection with aforementioned decision to suspend BCTI's licenses. In addition actions were brought by BCTI in the International Court of Arbitration at the International Chamber of Commerce against TurkmenTelecom and Altyn Asyr - both state-owned telecom operators, in connection with their alleged termination of the interconnection agreements with BCTI. MTS management is continuing negotiations with the Ministry of Communications and officials of the Government of Turkmenistan to resolve the situation amicably and continue its operations in Turkmenistan.

As was stated previously, the Company at all times had reasons to believe that the Agreement would be extended and had approached the Ministry of Communications within the required timeframe to formalize the extension. However, the Ministry of Communications failed to grant the extension in accordance with the terms of the Agreement.

In any event, it is the Company's opinion that the expiration of the Agreement does not preclude MTS from continuing its operations in Turkmenistan nor can any alleged termination of the Agreement serve as the basis for suspension of BCTI's licenses, and that the notice must have been given as a result of misinterpretation of local laws and regulations by the Ministry of Communications of Turkmenistan.

The Company shall vigorously defend its legal rights and investment interests.

Uganda: Tax dispute resolved, says Tullow Oil

Jan 12, http://www.monitor.co.ug/News/National/-/688334/1088170/-/cja1ejz/-/

The tax dispute between the government and oil exploration companies, Heritage Oil and Gas and Tullow Oil, has been resolved, according to Mr Elly Karuhanga, the chairman Tullow Uganda Operations.

UK: Tribunal rules in Tata's favour (Teesside arbitration)

Jan 11, http://www.tatasteel.com/UserNewsRoom/usershowcontent.aspx?id=121&type=WhatNew&REFERER=http://www.tatasteel.com/whatnewdetails.asp?WhatNewId=121

... Tata Steel UK Limited ("TSUK"), a subsidiary of Tata Steel, has received a partial final award in its favour in an ongoing arbitration proceeding between TSUK and certain off-takers of its Teesside Cast Products Plant ("Off-Takers") on January 5, 2011. The arbitral tribunal amongst other things found that the Off-Takers did not validly terminate their off-take agreements. The arbitration proceedings are being held under the auspices of the ICC International Court of Arbitration. The arbitration proceedings will now move to the next phase of determining the amount of damages.

Ukraine: Naftohaz Ukrainy Returns 0.8 Billion Cubic Meters Of Natural Gas To RosUkrEnergo

Jan 11, http://un.ua/eng/article/306698.html

The Naftohaz Ukrainy national joint-stock company has returned about 784 million cubic meters of natural gas to the RosUkrEnergo company (Switzerland). An informed source disclosed this to Ukrainian News. According to the source, this volume of gas was pumped in December 2010.

US-Canada: NAFTA Tribunal Rejects Grand River Claim

Jan 15, http://www.state.gov/r/pa/prs/ps/2011/01/154691.htm

On January 12, 2011, a three-member NAFTA arbitration tribunal rejected a claim against the United States filed by Grand River Enterprises Six Nations, Ltd., a Canadian corporation, and Jerry Montour, Kenneth Hill and Arthur Montour Jr., members of Canadian First Nations, challenging certain legislative measures taken by various states related to the landmark 1998 Master Settlement Agreement ("MSA") between multiple states and major U.S. tobacco companies. Claimants had sought as much as $664 million in damages. The Office of the Legal Adviser of the Department of State represented the United States in the case.

The Claimants submitted their claim to arbitration in 2004, alleging that certain legislative measures taken by states relating to the MSA caused them material harm and substantially impaired the value of their investment in violation of NAFTA investment protections. The Tribunal unanimously rejected the claim, and ruled in favor of the United States.

Background

The Grand River case concerns the Claimants' distribution and sale of tobacco products in the United States. Claimants, a Canadian corporation and members of Canadian First Nations, alleged that various state legislative measures related to the MSA imposed discriminatory payment burdens, altered the regulatory framework under which they had made their investment, and infringed upon their rights as First Nations members, causing them material harm and substantially impairing the value of their investment.

The United States maintained that Grand River Enterprises Six Nations, Ltd., Jerry Montour and Kenneth Hill did not have an investment in the United States and did not qualify for NAFTA Chapter Eleven investment protections. The United States also maintained that the legislative measures were reasonable, were supported by the legitimate public policy goal of protecting the public health, and did not violate the NAFTA.

In an award dated January 12, 2011, the Tribunal rejected the claim in its entirety. The Tribunal held that it did not have jurisdiction over the claims of Grand River Enterprises Six Nations, Ltd., Jerry Montour and Kenneth Hill because these Claimants did not have an investment in the United States. With regard to the claims of Arthur Montour Jr., the Tribunal held that the legislative measures in question were not discriminatory, did not violate the minimum standard of treatment provision of the NAFTA, and did not constitute an expropriation of his investment.

The Department of State coordinated closely in the defense of this case with other federal agencies, as well as with key states and the National Association of Attorneys General.

The members of the Tribunal are Fali S. Nariman, James Anaya, and John R. Crook.

The full text of the award will be available on the State Department's website at http://www.state.gov/s/l/c11935.htm once the parties make any required redactions of confidential information. Party submissions, amicus curiae submissions, hearing transcripts, and other arbitration documents in the Grand River case are also available on this website, subject to redactions of confidential information.

US: Kraft--Starbucks hearing may take place in January

Dec 23, http://www.xe.com/news/2010/12/23/1604629.htm

Kraft Foods Inc said on Thursday a federal judge may hear its request next month for an injunction to stop Starbucks Corp from taking grocery distribution of its own packaged coffee away from Kraft.

US: World Bank international arbitrations add to D.C. legal workload

Jan 3, http://www.washingtonpost.com/wp-dyn/content/article/2010/12/30/AR2010123003253.html

A recent explosion of cases before an arm of the World Bank Group that facilitates the resolution of international investment disputes has proven advantageous for area law firms, generating work for burgeoning practice groups that are largely based in the District.

Venezuela: CEMEX announces that negotiations with the Republic of Venezuela to resolve the nationalization of CEMEX Caracas show constructive progress

Jan 7, http://www.cemex.com/qr/mc_pr_010711.asp

CEMEX, S.A.B. de C.V., announced today, with respect to the nationalization of the properties of CEMEX Caracas in Venezuela, that it is maintaining a constructive negotiation process with the Republic of Venezuela aimed at achieving an amicable settlement. Considering the recent progress in negotiations, CEMEX considers that an agreement may be finalized in the near term.

This agreement would make the ongoing arbitration process in ICSID (International Centre for Settlement of Investment Disputes) between the Republic of Venezuela and CEMEX Caracas unnecessary. The ICSID tribunal recently confirmed the position of the Republic of Venezuela that Article 22 of the Law on Investment Promotion and Protection is not an open and general consent of the Republic of Venezuela to submit to ICSID arbitration any investment dispute. The court also held that it has jurisdiction over this case based on the bilateral investment treaty between the Republic of Venezuela and The Netherlands, to which the Republic of Venezuela has expressed disagreement.

Venezuelan government prepares amicable settlement with Cemex

Jan 7, http://english.eluniversal.com/2011/01/07/en_eco_esp_venezuelan-governmen_07A4946651.shtml

Minister Ricardo Menéndez promised to release soon the agreement with the Mexican trust. Venezuela's Ministry of Science, Technology and Intermediate Industries reported in a press release that the Venezuelan government was discussing with Mexican giant cement maker Cemex an "amicable settlement," involving an indemnity to the Mexican trust for the expropriation of the cement maker in 2008.

PODCASTS

IDN 97 -You Won! Now, It's Enforcement Time (Jan. 4, 2011)

IDN host Michael McIlwrath's guest for the first podcast of 2011 is Jurriaan Braat, a partner in Omni Bridgeway Holding BV, a privately held consulting firm in the Hague, Netherlands. Omni Bridgeway provides some ADR consulting services, but it is primarily involved in helping its clients address collecting foreign debt, including judgments, and foreign arbitration awards. The company's cross-border debt collection is often done by its partnering with award creditors on a contingency fee basis.

EVENTS

LCIL Friday Lunchtime Lecture: The Constitutional Law of International Arbitration 12th March 2011, 13:00

http://www.lcil.cam.ac.uk/news/article.php?section=26&article=1407

A Lecture by Professor Peter B. Rutledge, University of Georgia, USA

Professor Peter B. Rutledge, Associate Professor of Law, University of Georgia, USA; Fulbright Scholar (2010-11), University of Vienna School of Law (Georgia Law web profile).

Date: Friday 12th March 2011
Time: 1 pm (with a sandwich lunch sponsored by Cambridge University Press from 12:30pm)
Venue: Finley Library, Lauterpacht Centre, 5 Cranmer Road, Cambridge

Numbers are limited so please arrive early to avoid disappointment. Please note the lecture programme is subject to revision without notice.

JOBS / MOVES

SIAC Announces Deputy Registrar and Counsel Appointments

Jan 1, http://www.siac.org.sg/cms/images/stories/articles/Announces_Deputy_Registrar_and_Counsel.pdf

SIAS is are pleased to announce the appointment of Ms Kua Lay Theng, to the post of Deputy Registrar of SIAC and the promotion of Mr Ankit Goyal, Head (South Asia) from Assistant Counsel to Counsel with effect from January 1st 2011.

David Roney Joins Sidley's International Arbitration Practice in Geneva

Dec 20, http://www.sidley.com/newsresources/newsandpress/Detail.aspx?news=4641

Geneva - Sidley Austin LLP announced today that David Roney has joined the firm as a partner in the International Arbitration practice. Mr. Roney has broad experience handling high-profile international arbitration matters involving parties from throughout the world. He will be based in Sidley's Geneva office.

Lorraine M. Brennan Joins JAMS International as Managing Director

Jan 11, http://www.jamsadr.com/lorraine-m-brennan-joins-jams-international-as-managing-director-01-11-2011/

JAMS International continues its expansion into the European Union with the addition of Lorraine M. Brennan as Managing Director. Ms. Brennan, who is currently Senior Vice President of Programs and International at the CPR Institute, will join JAMS International on January 17. She will manage the opening of a new London Resolution Center and be a key player in negotiating the entry of new EU partners and panelists as part of JAMS International.

ICSID

New: Highbury International AVV and Ramstein Trading Inc. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/11/1)

Mining concession. Registered January 05, 2011. Tribunal not yet constituted

New: Içkale Insaat Limited Sirketi v. Turkmenistan (ICSID Case No. ARB/10/24)

Design and construction contracts, Registered December 20, 2010

New: Border Timbers Limited, Border Timbers International (Private) Limited, and Hangani Development Co. (Private) Limited v. Republic of Zimbabwe (ICSID Case No. ARB/10/25)

Forestry and timber processing enterprises, Registered December 20, 2010

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

Outcome of Proceeding: The ad hoc Committee issues its decision on annulment on December 23, 2010

Decision on annulment: Sociedad Anónima Eduardo Vieira v. Republic of Chile (ICSID Case No. ARB/04/7) Decisión de Anulación (December 10, 2010)

Available at the ICSID website (in Spanish)

M. Meerapfel Söhne AG v. Central African Republic (ICSID Case No. ARB/07/10)

Status of Proceeding: Tribunal declares the proceeding closed on January 12, 2011

Togo Electricité and GDF-Suez Energie Services v. Republic of Togo (ICSID Case No. ARB/06/7)

Status of Proceeding: Republic of Togo files a response to Togo Electricité's observations of December 21, 2010 on January 12, 2011

Mobil Exploration and Development Inc. Suc. Argentina and Mobil Argentina S.A. v. Argentine Republic (ICSID Case No. ARB/04/16)

Status of Proceeding: Claimants file a response to the Respondent's observations of December 27, 2010 on January 5, 2010

Settlement agreed by the parties and proceeding discontinued: Olyana Holdings LLC v. Republic of Rwanda (ICSID Case No. ARB/10/10)

Tea company. Registered April 16, 2010. Tribunal Constituted: September 15, 2010. Outcome of Proceeding: Settlement agreed by the parties and proceeding discontinued at their request (order taking note of the discontinuance issued by the Tribunal on January 7, 2011 pursuant to Arbitration Rule 43(1)).

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

Status of Proceeding: Claimant files a counter-memorial on jurisdiction on December 31, 2010

Alapli Elektrik B.V. v. Republic of Turkey (ICSID Case No. ARB/08/13)

Status of Proceeding: Tribunal holds a pre-hearing conference with the parties by telephone on January 6, 2011

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

Status of Proceeding: each party files observations on the other party's request for production of documents on January 7, 2011

Antoine Abou Lahoud and Leila Bounafeh-Abou Lahoud v. Democratic Republic of the Congo (ICSID Case No. ARB/10/4)

Status of Proceeding: Respondent files a counter-memorial on the merits, including objections to jurisdiction on December 23, 2010

Iberdrola Energía, S.A. v. Republic of Guatemala (ICSID Case No. ARB/09/5)

Status of Proceeding: Tribunal issues a procedural order concerning production of documents on December 22, 2010)

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

Status of Proceeding: Tribunal issues a further procedural order concerning examination of witnesses and questions of immunity on December 29, 2010

AES Corporation and Tau Power B.V. v. Republic of Kazakhstan (ICSID Case No. ARB/10/16)

Tribunal Constituted: January 05, 2011. G.B. Born, V. Lowe, K.M. Sachs

Opic Karimum Corporation v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/10/14)

Tribunal Constituted: January 05, 2011. D. Jones, P. Sands, G.S. Tawil.

Antoine Abou Lahoud and Leila Bounafeh-Abou Lahoud v. Democratic Republic of the Congo (ICSID Case No. ARB/10/4)

Status of Proceeding: Respondent files a counter-memorial on the merits on December 22, 2010

ATA Construction, Industrial and Trading Company v. Hashemite Kingdom of Jordan (ICSID Case No. ARB/08/2)

Constitution of Ad hoc Committee on December 08, 2010. G. Guillaume, J. Fernández-Armesto, B. Hanotiau

SAUR International v. Argentine Republic (ICSID Case No. ARB/04/4)

Status of Proceeding: Respondent files observations on the Claimant's request for production of documents on January 4, 2011

CEMEX Caracas Investments B.V. and CEMEX Caracas II Investments B.V. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/08/15)

Decision on Jurisdiction (Dec 30, 2010) available at http://icsid.worldbank.org/

Total S.A. v. Argentine Republic (ICSID Case No. ARB/04/1)

Status of Proceeding: Tribunal issues a decision on liability on December 27, 2010. Attached to the decision is a concurring opinion by one arbitrator, and a dissenting opinion by another arbitrator

Ron Fuchs v. Georgia (ICSID Case No. ARB/07/15)

Status of Proceeding: Georgia files a memorial on annulment on December 30, 2010

Ioannis Kardassopoulos v. Georgia (ICSID Case No. ARB/05/18)

Status of Proceeding: Georgia files a memorial on annulment on December 30, 2010

Mobil Exploration and Development Inc. Suc. Argentina and Mobil Argentina S.A. v. Argentine Republic (ICSID Case No. ARB/04/16)

Status of Proceeding: Respondent files observations on the Claimants' request for production of documents on December 27, 2010

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

Status of Proceeding: proposal for disqualification of an arbitrator is declined; the proceeding is resumed on December 23, 2010

Gold Reserve Inc. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB(AF)/09/1)

Status of Proceeding: Claimant files observations on the Respondent's request for production of documents on December 24, 2010

Víctor Pey Casado and President Allende Foundation v. Republic of Chile (ICSID Case No. ARB/98/2)

Status of Proceeding: Republic of Chile files a reply on annulment on December 22, 2010

Mærsk Olie, Algeriet A/S v. People's Democratic Republic of Algeria (ICSID Case No. ARB/09/14)

Status of Proceeding: Respondent files a counter-memorial on the merits on December 21, 2010

Deutsche Bank AG v. Democratic Socialist Republic of Sri Lanka (ICSID Case No. ARB/09/2)

Status of Proceeding: Tribunal issues a procedural order concerning production of documents on December 22, 2010

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

Status of Proceeding: Respondent files a rejoinder on jurisdiction and the merits on December 16, 2010

ATA Construction, Industrial and Trading Company v. Hashemite Kingdom of Jordan (ICSID Case No. ARB/08/2)

Status of Proceeding: Tribunal holds a hearing on Interpretation in Washington, D.C. on December 21, 2010

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

Status of Proceeding: parties file requests for production of documents on December 21, 2010

Niko Resources Ltd. v. People's Republic of Bangladesh, Bangladesh Petroleum Exploration and Production Company Limited ("Bapex") and Bangladesh Oil Gas and Mineral Corporation ("Petrobangla") (ICSID Case No. ARB/10/18)

Gas purchase and sale agreement. Tribunal Constituted: December 20, 2010. President: Michael E. SCHNEIDER (German), Arbitrators: Campbell McLACHLAN (New Zealand), Jan PAULSSON (French)

Niko Resources (Bangladesh) Ltd. v. People's Republic of Bangladesh, Bangladesh Petroleum Exploration & Production Company Limited ("Bapex") and Bangladesh Oil Gas and Mineral Corporation ("Petrobangla") (ICSID Case No. ARB/10/11)

Petroleum development contract. Tribunal Constituted: December 20, 2010. President: Michael E. SCHNEIDER (German), Arbitrators: Campbell McLACHLAN (New Zealand), Jan PAULSSON (French)

Elsamex, S.A. v. Republic of Honduras (ICSID Case No. ARB/09/4)

Status of Proceeding: Tribunal decides to join the additional objections on jurisdiction to the merits on December 21, 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 issues a procedural order concerning the procedural calendar on December 21, 2010

Ioan Micula, Viorel Micula and others v. Romania (ICSID Case No. ARB/05/20)

Status of Proceeding: Claimants file a response to the Respondent's observations of November 30, 2010 on December 20, 2010

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