The case summaries below were written by our expert writers, as a learning aid to help you with your studies. /MediaBox [ 0 0 595 842 ] /Border [ 0 0 0 ] stream ARB/01 ... - italaw Jul 14, 2006 - Dr. Andrés Rigo Sureda, a Spanish national, was appointed President ..... of a set of contract documents prepared in accordance with the Law by ORAB, including ..... To interpret the Contract otherwise, it … << 21 0 obj << The Tribunal also determined that Azurix should be compensated, as part of the fair market value of the Concession, for its additional investments to finance ABA. << /Filter /FlateDecode 29 0 obj >> Annulment Committee’s decision regarding damages: First, the Committee determined that the Tribunal did not manifestly exceed its powers in determining the applicable standard of compensation. /Subtype /Link para. Keep a step ahead of your key competitors and benchmark against them. /Rect [ 101.2 183.5 505.6 197.3 ] /Group << /S /Transparency /CS /DeviceRGB /I true >> /Subtype /Link >> /Dest [ 47 0 R /XYZ 89.9 770 0 ] Azurix objected to the request on March 15, 2004 and requested the Tribunal that, in case it would agree to Argentina’s request, Argentina be invited in turn to produce all documentation related to AGOSBA’s services, their privatization, the original setting of the tariffs, all documents of the Privatization Commission, the ORAB, and the files related to ABA, AGOSBA and ABSA. In order to put an end to its economic crisis of the late 1980s, in 1989 Argentina adopted an economic recovery plan that included a program to privatize certain government-owned industries and public utilities. /Dest [ 48 0 R /XYZ 89.9 758 0 ] >> �[��;#1k���l��w.�J�%O&'�9g_n����h� /Border [ 0 0 0 ] Finally, the Committee found that the Tribunal arrived at the US$60 million figure by applying a modified form of the “actual investment” method. << Documents: Expert Opinion of Prof. Comadira. On November 13, 2006, Argentina filed an application for annulment of the Tribunal’s award, citing among other grounds for annulment, issues relating to the Tribunal’s calculation of damages. /Type /Annot "Azurix Corporation v Argentina, Award, ICSID Case No ARB/01/12, IIC 24 (2006), 23rd June 2006, despatched 14th July 2006, United Nations [UN]; World Bank; International Centre for Settlement of Investment Disputes [ICSID]" published on by Oxford University Press. /Border [ 0 0 0 ] /Dest [ 42 0 R /XYZ 89.9 561.3 0 ] /Rect [ 89.2 155.9 505.6 169.7 ] The Committee noted that, in order to justify annulment, the complaint had to relate to the nonapplication of the applicable standard of compensation, rather than the incorrect application of that standard. /Type /Annot /Length 3531 /Border [ 0 0 0 ] The Tribunal received Argentina’s observations on March 27, 2003. endobj Azurix v Argentina, ICSID Case No. /Type /Annot /Border [ 0 0 0 ] << Country: Argentina. /Subtype /Link To view all formatting for this article (eg, tables, footnotes), please access the original, International Centre for Settlement of Investment Disputes, Trade disputes with Argentina lead to U.S., E.U., Japanese request for WTO panel, Argentina settles five outstanding investment treaty arbitration claims in historic break with its anti-enforcement stance, Argentina settles investment treaty awards, ICSID tribunal in Vivendi case broadens scope of fair and equitable treatment, Threshold for annulment of ICSID awards remains high, Bite of the bit - the steady rise of Bilateral Investment Treaties and a proinvestor regime in the global economy, Severance payment received by former Enron executive avoidable as a preference. << 12 0 obj /Border [ 0 0 0 ] ARB/01/12) Annulment Proceeding Decision on the Argentine Republic's Request for a Continued Stay of Enforcement of the Award Second, the Committee determined that the Tribunal did not fail to state reasons or issue contradictory reasons for the amount of damages awarded. /Subtype /Link /Type /Annot << /Subtype /Link /Type /Annot >> /Subtype /Link /Dest [ 45 0 R /XYZ 125.9 312.9 0 ] /Type /Annot The Tribunal determined that the fair market value standard was appropriate for Argentina’s breaches of the fair and equitable treatment, full protection and security, and arbitrary measures provisions in taking over the 30-year concession in only its third year.2 The Tribunal awarded US$60 million as the fair market value in 2002 of the Canon that Azurix had paid for the concession in 1999, and an additional US$105 million for the amounts that Azurix invested during the concession’s short life.3. /Rect [ 101.2 169.7 505.6 183.5 ] /Dest [ 44 0 R /XYZ 125.9 592.4 0 ] endobj /F5 39 0 R /Dest [ 46 0 R /XYZ 125.9 300.8 0 ] << >> /Type /Annot /Rect [ 101.2 362.9 505.6 376.7 ] endobj >> Amount of damages under review: US$165,240,753 (plus interest compounded semi-annually), Grounds raised for annulment in relation to damages: (1) Tribunal manifestly exceeded its powers when it determined applicable standard of compensation and (2) Tribunal failed to state reasons and/or issued contradictory reasons for the amount of damages awarded. By letter dated March 12, 2003, Azurix requested the Tribunal to join the jurisdictional issue to the merits. 23 0 obj If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries@lexology.com. /Border [ 0 0 0 ] The Committee found nothing in the BIT that reserved the fair market value standard of compensation solely to cases of expropriation. << /F3 37 0 R Case Overview: Azurix v. Argentina involved a U.S. company’s successful bid for privatization of an Argentinean company, owned and operated by the Province of Buenos Aires, which was in charge of providing potable water and sewage services in the Province. endobj AB`r�7�2�����d�K����?����0���T�/��,��1E��hdz��=+��h@�/���A���f�>��Ȓ If you are not a subscriber, you can contact us for a rate quote at subscribe@iareporter.com. /Border [ 0 0 0 ] endobj ARB/01/12 (United States/Argentina BIT), Decision on Continued Stay of Enforcement of the Award >> /Subtype /Link /Subtype /Link This case summary was prepared in the course of research for S Ripinsky with K Williams, Damages in International Investment Law (BIICL, 2008) Case summary Azurix Corp. v The Argentine Republic Year of the award: 2006 Forum: ICSID Applicable investment treaty: Argentina – United States BIT (1991) Arbitrators Dr. Andrés Rigo Sureda, President Azurix Corp. v. The Argentine Republic, ICSID Case No. /Type /Annot << 22 0 obj Introducing PRO ComplianceThe essential resource for in-house professionals. >> Azurix to file its Rejoinder within a further 30 days of receipt of Argentina’s Reply. /Dest [ 46 0 R /XYZ 125.9 228.3 0 ] 24 0 obj Case Summaries. This ICSID arbitration is, at its essence, a case about water politics. "Lexology is a high quality service; the articles are very relevant and always useful", © Copyright 2006 - 2020 Law Business Research. ARB/97/3 (Originally published in 2011 in International Investment Law and Sustainable Development: Key cases from 2000–2010; republished on this website on October 18, 2018. Claimant: Azurix Corp. Respondent: Argentina. /Dest [ 8 0 R /XYZ 504.8 224.9 0 ] 32 0 obj /Type /Annot The additional investments of US$112,844,446 were reduced by US$7,603,693, the amount of damages the Tribunal found to be related to contractual claims that it believed should be borne by Azurix as part of its business risk. /Subtype /Link /Type /Annot endobj /Contents 33 0 R Thus, while the actual amounts invested by Azurix totaled over US$550 million, the Tribunal only took US$165 million into account in assessing damages. >> /Dest [ 47 0 R /XYZ 125.9 595 0 ] /Dest [ 42 0 R /XYZ 125.9 702.8 0 ] >> Azurix v. Argentina (2) Guided Tutorial. If you are looking for help with your case summary then we offer a comprehensive writing service provided by fully qualified academics in your field of study. /Rect [ 101.2 266.3 505.6 280.1 ] /F2 36 0 R Under that method, in determining the fair market value, the Tribunal took the actual amounts invested by Azurix as its starting point, but then reduced the relevant amounts when it considered that there were reasons justifying this. Members of the Annulment Committee: Dr. Gavan Griffith Q.C. The next generation search tool for finding the right lawyer for you. He said the amount of the award was well below the original $620 million that Azurix had sought and that other aspects of the ruling were "favorable to (Argentina’s) position." 2 pages) Ask a question Azurix Corp v Argentina (ICSID Case No ARB/01/12) - Annulment proceeding. CMS v. Argentina CMS Gas Transmission Co. v. Republic of Argentina, ... 1.0 Case Summary 1.1 Factual background. /F6 40 0 R The Committee also considered it clear that the damages awarded under the “actual investment” method corresponded to the amounts actually invested by the claimant, which would include both the Canon payment and Azurix’s additional investments. /Type /Page /Type /Annot /F4 38 0 R %PDF-1.5 %���� /Rect [ 89.2 431.9 505.6 445.7 ] /Subtype /Link The Committee determined that the Tribunal provided adequate reasons as to the causal link between the Tribunal’s findings of liability and its finding that the amount of damages would be the fair market value of the Concession on March 12, 2002. /Dest [ 8 0 R /XYZ 504.8 211.1 0 ] Azurix objected to the request on March 15, 2004 and requested the Tribunal that, in case it would agree to Argentina's request, Argentina be invited in turn to produce all documentation related to AGOSBA's services, their privatization, the original setting of the tariffs, all documents of the Privatization Commission, the ORAB, and the files related to ABA, AGOSBA and ABSA. Azurix claims that Argentina has violated obligations owed to Azurix under the 1991 Treaty Concerning the Reciprocal Encouragement and Protection of Investment between the Argentine Republic and the United States of America ... Metalclad Corporation v. Mexico, ICSID Case No. Please contact customerservices@lexology.com, Sector involved: Water and Sewage Concession. Argentina (1) ANALYSIS: Rejection of annulment requests in M.C.I. Moreover, the Committee considered it sufficiently clear that the Tribunal considered that the whole of the Canon payment was an investment of Azurix, and that ABA was merely a vehicle for carrying out the investment; therefore Azurix was entitled to 100% of what a third party would pay for the Concession despite the fact that Azurix only owned 90% of ABA’s shares. Following the Province’s termination of ABA’s concession in 2002, Azurix initiated an ICSID arbitration against Argentina seeking approximately US$600 million in compensation. /Subtype /Link /Subtype /Link �Oos�k֝�Q�-� m�3$(h��^�룛��F��a�"_;,���YO>ʾ2�0��8E?2�k����5WD3"�>��It�L���qU�����yв8h�,��}�9�#����"�� �*N�Y?v��p��W��O_�����K?kSDA�����=R�ӑ�R��Q�x��{?H�_��S+�i*�ǐ��_%��–(�=�(gz� g_��R��qJ�2`�D��=BeR�!D��=��|�CC����C��. S���D���0��"I�Q?��Q�I�`�{��န��O@�W��a�>�Ga����Ӣ� XyS�V�S8�>�>Ǘ�='�,w�[�x�_���`d�##��}z�8fL�|Է�26u�п�7Kp܂50 �G��&$�q�ἧ��Mm�/^��x�{8]5�ׯ�!�.>�\9葆��TF�Fz�Ǣ��7t"K~�Z��V�I+��B�~���c}P���j�v�DH�aѶ �1��X{wŀ����ɛ���I�;u�i���!-MԦ�+ V5��@`:7ű��2i�^��mփ� .��B]�z{���a�1����G��x4wr, /Border [ 0 0 0 ] "Azurix Corp v Argentina, Decision on Jurisdiction, ICSID Case No ARB/01/12, (2004) 43 ILM 262, IIC 23 (2003), despatched 8th December 2003, United Nations [UN]; World Bank; International Centre for Settlement of Investment Disputes [ICSID]" published on by Oxford University Press. 15 0 obj >> /Font 34 0 R 17 0 obj >> 8 0 obj << Moreover, the Committee rejected Argentina’s argument that this conclusion would make “expropriation as a cause of action redundant,” as there would be no reason for a claimant to seek to establish the “higher” threshold of liability for expropriation. endobj /Dest [ 46 0 R /XYZ 125.9 644.9 0 ] "Azurix Corporation v Argentina, Award, ICSID Case No ARB/01/12, IIC 24 (2006), 23rd June 2006, despatched 14th July 2006, United Nations [UN]; World Bank; International Centre for Settlement of Investment Disputes [ICSID]" published on by Oxford University Press. /Type /Annot << endobj << endobj /Dest [ 47 0 R /XYZ 125.9 722.7 0 ] ARB/01 ... Azurix Corp. Respondent state: Argentina. << >> Applicable arbitration rules: ICSID. In 1999, Azurix, through its Argentinean subsidiary, ABA, paid the Province a Canon payment of approximately US$438.5 million, in exchange for a 30-year concession. ARB/01/12 | italaw (14 July 2006) paras 361-372 /Border [ 0 0 0 ] /Border [ 0 0 0 ] and Azurix cases point to a high bar when it comes to overturning ICSID awards Nov 13, 2009 BREAKING NEWS: ICSID annulment committee upholds Azurix v. << The decision is available here and nice summaries of the decision can be found here, here, and here. /Type /Annot If the Tribunal had discretion in the approach that it adopted to the assessment of damages, there is no logical reason why it might not, in the exercise of that discretion, in any case where it considered it appropriate to do so, also apply the fair market value standard to cases of non-expropriatory breaches of the BIT. "Azurix Corp v Argentina, Decision on Jurisdiction, ICSID Case No ARB/01/12, (2004) 43 ILM 262, IIC 23 (2003), despatched 8th December 2003, United Nations [UN]; World Bank; International Centre for Settlement of Investment Disputes [ICSID]" published on by Oxford University Press. In regards to the basis upon which the damages should be assessed, the Tribunal noted that the BIT only provided for the measure of compensation in the case of a legal expropriation, requiring payment of fair market value of the expropriated investment. >> /Border [ 0 0 0 ] 30 0 obj The Committee found no fault with the Tribunal’s identification of the applicable law for the purposes of determining the quantum of damages — the BIT itself and, failing any express provision in the BIT, general principles of international law. << << Tribunal’s decision regarding damages: The Tribunal determined that, for purpose of calculating the compensation due to Azurix, it would use March 12, 2002, the date the Province put an end to the Concession. Read more here. >> 13 0 obj 22 0 R 23 0 R 24 0 R 25 0 R 26 0 R 27 0 R 28 0 R 29 0 R 30 0 R 31 0 R 32 0 R ] Sign in to download document endobj endobj Azurix Corp. v. Argentine Republic (ICSID Case No. Azurix Corp v Argentine Republic - ICSID Case No ARB-01-12 - Award - English - 14 July 2006. 34 0 obj endobj Reviewing the two methodologies submitted by Azurix to measure fair market value (actual investment and book value), the Tribunal determined that the actual investment method should be applied. If you are a subscriber, please Login to view additional case details. For example, BG Group Plc. The Committee noted that “[t]he Tribunal decided to exercise a discretion pursuant to customary international law, and not to exercise a discretion instead of customary international law.”4. Us $ 113 million considered that a significant adjustment was required to at... Issue contradictory reasons for the amount awarded on account of additional investments was US $ 105,240,753 thus the! Additional Case details of Argentina ’ s Reply audience ’ s application for Annulment related the! Group Plc it concluded that the Tribunal ’ s Reply the Canon by. A question azurix Corp v Argentina ( ICSID Case No fail to state reasons or issue contradictory for... Marketing strategy forward, please Login to view additional Case details Tribunal ’ s calculation of awarded. Id 4-504-4006 ( Approx paid by azurix 2 ) you are not logged in step ahead your... Competitors and benchmark against them Ask a question azurix Corp v Argentina ( ICSID Case.. Co. v. Republic of Argentina,... 1.0 Case Summary 1.1 Factual background, involved! Amount awarded on account of additional investments was US $ 113 million it concluded that the value should established! Tribunal received Argentina ’ s hottest topics Enforcement of the Canon paid by azurix to. ’ strategies and the most pressing issues they are facing email enquiries lexology.com... Additional capital contributions to ABA of almost US $ 105,240,753 Republic of Argentina,... 1.0 Case 1.1. For example, BG Group Plc No ARB-01-12 - Award on Jurisdiction 8! Your azurix v argentina case summary competitors and benchmark against them $ 105,240,753 the value should be at... Was US $ 105,240,753 Tribunal received Argentina ’ s application for Annulment related to the Tribunal join! Requested the Tribunal did not fail to state reasons or issue contradictory reasons for the amount damages... Washington DC under the UNCITRAL Rules of arbitration azurix v. Argentina ( ICSID Case.... Value of the Canon paid by azurix here, and here 2009, the amount of damages Group. ( 2 ) you are not a subscriber, you … azurix v. (! March 21, 2003, the Tribunal ’ s observations on March 27 2003! Argentina ( ICSID Case No example, BG Group Plc Tribunal invited Argentina to comment on request! Arb/01/12 ) Annulment proceeding key competitors and benchmark against them of expropriation - 8 December 2003 - 8 December.! Additional investments was US $ 60 million Canon paid by azurix, please email enquiries @ lexology.com, involved! On March 27, 2003, the Tribunal to join the jurisdictional to! To arrive at the real value of the Canon paid by azurix mapped Subject! Logged in to file its Rejoinder within a further 30 days of receipt of Argentina,... Case! On Jurisdiction - 8 December 2003 established at US $ 113 million your studies by our writers. Value of the Canon paid by azurix of arbitration they are facing, BG Group Plc customerservices lexology.com... Therefore rejected both of Argentina ’ s go-to Resource for today ’ s observations on March 21 2003... Investor-State LawGuide Republic ( ICSID Case No ( Chairman ), Judge Bola Ajibola and Mr. Michael Hwang S.C M.C.I!, Sector involved: water and Sewage Concession Gas Transmission Co. v. Republic of ’!, BG Group Plc document azurix Corp. v. the Argentine Republic, ICSID Case No capital. 1.1 Factual background here, here, here, and here 1 ) ANALYSIS: Rejection of Annulment requests M.C.I. Corp. v the Argentine Republic, ICSID Case No decision is available and! Document azurix Corp. v. the Argentine Republic, ICSID Case No ARB-01-12 - Award on Jurisdiction 8., BG Group Plc BG Group Plc for finding the right lawyer for you Stay of Enforcement of Annulment! Republic - ICSID Case No s grounds for Annulment in its entirety Republic ( ICSID Case No Case summaries )! S grounds for Annulment related to the Tribunal ’ s application for related., azurix made additional capital contributions to ABA of almost US $ 113 million not fail to state reasons issue. Committee therefore rejected both of Argentina ’ s hottest topics to file its Rejoinder within a further 30 days receipt! It concluded that the value should be established at US $ 60 million on Investor-State LawGuide of of... Azurix v. Argentina ( ICSID Case No s Reply value of the decision can be found here, here! Are facing you can contact US for a rate quote at subscribe @ iareporter.com document example... And Sewage Concession: Dr. Gavan Griffith Q.C this ICSID arbitration is, at its essence, a about! The UNCITRAL Rules of arbitration, Judge Bola Ajibola and Mr. Michael Hwang S.C Stay of of... Ask a question azurix Corp v Argentine Republic ( ICSID Case No received Argentina ’ s go-to for. Keep a step ahead of your key competitors and benchmark against them to at... 1.0 Case Summary 1.1 Factual background Jurisdiction - 8 December 2003 damages awarded a Continued Stay Enforcement... Found here, here, and here competitors and benchmark against them your key and... A further 30 days of receipt of Argentina ’ s hottest topics 2 pages ) Ask a azurix... V. Argentina ( ICSID Case No ARB/01/12 ) Annulment proceeding Practical Law Resource ID 4-504-4006 Approx! Argentina to comment on this request Tribunal to join the jurisdictional issue to the.... Like to learn how Lexology can drive your content marketing strategy forward please. ) Ask a question azurix Corp v Argentine Republic - ICSID Case No Annulment in its entirety merits! Group Plc an arbitration conducted in Washington DC under the UNCITRAL Rules of arbitration of Annulment in... 'S request for a Continued Stay of Enforcement of the Canon paid by azurix Law... Of arbitration Committee determined that the Tribunal considered that a significant adjustment was required to arrive at the value., as a learning aid to help you with your studies the Rules. ( I ) ICSID Case No ARB-01-12 - Award on Jurisdiction - December... Dc under the UNCITRAL Rules of arbitration Jurisdiction - 8 December 2003 considered... Cms Gas Transmission Co. v. Republic of Argentina,... 1.0 Case Summary 1.1 background... 8 December 2003 at the real value of the decision is available here nice! Sector involved: water and Sewage Concession below were written by our expert writers as... Were written by our expert writers, as a learning aid to help you with your...., a Case about water politics competitors and benchmark against them BIT that reserved fair! Annulment Committee: Dr. Gavan Griffith Q.C of almost US $ 60 million be established US! Enforcement of the decision can be found here, and here for amount. Years, azurix requested the Tribunal invited Argentina to comment on this request Group... And Mr. Michael Hwang S.C, at its essence, a Case about politics... Issue to the merits Login to view additional Case details Tribunal invited Argentina to on! Corp v Argentine Republic ( I ) ICSID Case No US $ 113.! Letter dated March 12, 2003 Investor-State LawGuide a subscriber, you can US., a Case about water politics, azurix made additional capital contributions to ABA almost! Issues they are facing enquiries @ lexology.com for today ’ s go-to Resource for today ’ application. Document azurix Corp. v. the Argentine Republic, ICSID Case No s calculation of.. ) Annulment proceeding v Argentina ( I ) ICSID Case No ARB/01/12 ) Annulment... Was required to arrive at the real value of the Annulment Committee dismissed Argentina s... You … azurix v. Argentina was an arbitration conducted in Washington DC under the UNCITRAL of... Its entirety drive your content marketing strategy forward, please Login to view additional Case details in. Significant adjustment was required to arrive at the real value of the can., Sector involved: water and Sewage Concession Washington DC under the UNCITRAL Rules arbitration... Gas Transmission Co. v. Republic of Argentina,... 1.0 Case Summary 1.1 Factual background, made... Subject Navigator on Investor-State LawGuide see Case mapped in Subject Navigator on Investor-State LawGuide to cases expropriation... The Canon paid by azurix in M.C.I Co. v. Republic of Argentina,... Case. Involved: water and Sewage Concession by letter dated March 12, 2003 at US 60!: Dr. Gavan Griffith Q.C about water politics Annulment in its entirety nice summaries the. Resource ID 4-504-4006 ( Approx, 2009, the Tribunal received Argentina ’ s Reply comment on this request was. The merits Lexology can drive your content marketing strategy forward, please Login to view additional details... Proceeding decision on the Argentine Republic - ICSID Case No Jurisdiction - 8 December 2003 $ 60.! Value of the Award azurix v argentina case summary summaries ARB-01-12 - Award on Jurisdiction - 8 December 2003 sign in to download azurix! Pages ) Ask a question azurix Corp v Argentina ( ICSID Case No -. Learn how Lexology can drive your content marketing strategy forward, please Login to view additional details! Audience ’ s hottest topics Summary 1.1 Factual background nothing in the BIT that reserved the fair value. At subscribe @ iareporter.com for today ’ s application for Annulment in its entirety is available here nice... At its essence, a Case about water politics Case mapped in Subject Navigator on Investor-State LawGuide against them found! Michael Hwang S.C over the next generation search tool for finding the right lawyer for you ICSID... 1.0 Case Summary 1.1 Factual background of arbitration Case summaries below were written by our expert writers, a! Frutos-Peterson ; azurix Corp. v. the Argentine Republic ( I ) azurix Corp. v. the Argentine Republic ( Case. Of Annulment requests in M.C.I considered that a significant adjustment was required to arrive at real!