Reproduced from www.worldbank.org/icsid with permission of ICSID.
Case Report (free download)
Dan Cake (Portugal) S.A. v. Hungary (ICSID CASE NO: ARB/12/9)
Decision on Jurisdiction and Liability
Case Report by Maria Davies
Edited by Ignacio Torterola
In its Decision on Jurisdiction and Liability of August 24, 2015 the Tribunal confirmed it had jurisdiction to hear the dispute between Dan Cake (Portugal) S.A. (the Claimant) and Hungary (the Respondent) pursuant to the Agreement between the Republic of Portugal and the Republic of Hungary on the Reciprocal Promotion and Protection of Investments of October 8, 1997 (the “BIT”) and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States of October 14, 1966. The Tribunal further found that the refusal of the Metropolitan Court of Budapest to convene a “composition hearing”, allowing the Claimant and its subsidiary to enter into a settlement agreement with creditors, and its further order insisting the liquidation of the subsidiary’s assets, amounted to a violation of the provisions on fair and equitable treatment and arbitrary and discriminatory measures impairing investment under the BIT.
Main Issues: Jurisdiction – personal – nationality; jurisdiction – temporal; treaty obligations – international law standard – discrimination; treaty obligations – international law standard – fair and equitable treatment; treaty obligations – state responsibility.
Case report provided by International Arbitration Case Law (IACL)