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 Marķa de las Mercedes Lovaglio Rivas, Editor Ignacio Torterola
The Claimants (collectively, "CMC" or "Claimants") brought an action for relief against the Republic of Mozambique ("Respondent" or "Mozambique") pursuant to the International Centre for Settlement of Investment Disputes ("ICSID") Convention and the Italy- Mozambique BIT (the "BIT"). The dispute arises out of the Claimant's completion of a project to reconstruct a portion of Mozambique's principal north-south highway, for which they requested additional compensation for supplementary works. After an unsatisfactory determination of the amount due by the project engineer (the "Engineer"), the parties engaged in a period of negotiations that resulted in a settlement offer made by Respondent on 30 October 2009, to which the Claimants responded in a letter dated 2 November 2009. CMC characterized its letter as an acceptance of the settlement offer, while the Respondent asserted that Claimants' letter was a counteroffer not accepted by Mozambique. CMC started this arbitration claiming that Respondent's failure to pay the amount proposed in the settlement offer breached several of its obligations under the BIT. The Respondent objected to the ICSID Tribunal's jurisdiction stating that the jurisdiction of the Tribunal has been superseded by the Cotonou Convention or by the implications of the Achmea ruling. While the Tribunal ruled that it had jurisdiction to hear the case, it rendered a decision on the merits in favour of the Respondent, dismissing each of Claimant's claims, as it concluded that no settlement agreement was ever reached.
Jurisdiction - Competence of the ICSID Tribunal -Effect of the Achmea decision - Effect of the Cotonou Convention; Existence of a settlement agreement; Treaty obligations - Fair and Equitable Treatment; Damages.
Case report provided by International Arbitration Case Law (IACL)
More Case Reports?
You can find all TDM IACL Case Reports here.