Reproduced from www.worldbank.org/icsid with permission of ICSID. (Document, does not apply to summary and/or TDM IACL Case Report below).
Case report (free download)
Case Report by Maria I. Pradilla Picas, editor Ignacio Torterola
In the Decision on Stay of Enforcement of the Award rendered on 11 March 2016, the Ad Hoc Annulment Committee (the "Committee") ordered the continuation of the stay of enforcement of the Award, so long as Venezuela provides a bank guarantee within 45 days of the Decision. In the event Venezuela does not satisfy the Committee's conditions on the bank guarantee within 45 days, the stay of enforcement shall be lifted. In doing so, the Committee concluded that the ICSID Convention grants it the power to issue a condition to continuing a stay of enforcement; neither the ICSID Convention nor the ICSID Arbitration Rules establish a presumption in favor of a stay of enforcement and, in any event, a stay of enforcement cannot be considered automatic; and, Venezuela bears the burden of proving circumstances that require the continuation of the stay of enforcement. Further, the Committee stated that some of these circumstances affecting whether to continue or lift a stay of enforcement are, among others, the dilatory nature of the annulment application; the risk of Venezuela's non-compliance in the event the Award is not annulled; the risk that Venezuela will not be able to duly recover its funds if the stay is lifted; and the risk that lifting the stay would cause significant and irreparable damage to Venezuela. The Committee concluded that there was not sufficient evidence warranting the lift of the stay of enforcement of the Award without condition, and, therefore, it made the continuation of the stay of enforcement conditional on the fact that Venezuela provides a bank guarantee within 45 days of notification of the Committee's Decision.
Stay of Enforcement of Award - Burden of Proof, Circumstances, bank guarantee; Requirements; Annulment
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