Case report (free download)
Charanne B.V. and Construction Investments S.A.R.L. v. The Kingdom of Spain (SCC Case No. 062/2012) - Award
Case Report by Tammi Pilgrim, Edited Ignacio Torterola
In the Award rendered on January 21, 2016 (accompanied by a concurring and dissenting opinion by Claimants´ appointed arbitrator), the Tribunal found that it had jurisdiction to hear the claim brought by Charanne B.V. and Construction Investments S.A.R.L against The Kingdom of Spain. The Tribunal also went on to find in favor of Spain and dismissed the claims, with costs awarded to Spain, on the basis that Spain's exercise of its right to regulate in the country's renewable energy sector, particularly in removing incentive payments (in the nature of a Feed in Tariff) among other things, did not infringe the Claimants' legitimate expectations and did not violate the ECT's guarantee of fair and equitable treatment. Claimant appointed arbitrator, Mr. Guido Tawil, concurred with the Tribunal that it had jurisdiction and that Spain had not indirectly expropriated the Claimants' investment. However, he disagreed with the Tribunal´s finding that the circumstances could not give rise to a breach of Claimants´ legitimate expectations and the fair and equitable treatment standard.
Case report provided by International Arbitration Case Law (IACL)