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 Vassiliki Marazopoulou, Editor Diego Luis Alonso Massa
These proceedings constitute Resubmission Proceedings in sequence to a partial Annulment of an Original Award. By virtue of the Original Arbitral Award it had been ruled that Guatemala (Respondent) had violated its obligation to accord Claimant fair and equitable treatment under Article 10.5 of the DR-CAFTA. This Arbitral Tribunal, after having established issues qualifying as res judicata proceeded to award Claimant damages due to cash flow shortfall until the date Claimant sold its share to the investment ('loss of value claim'), while it also upheld pre-sale interest to the damages awarded to the Claimant. The Arbitral Tribunal decided to apply the same interest of US Prime rate plus 2% in both pre- and post-Award damages. Finally, the Arbitral Tribunal proceeded with an allocation of costs between the Parties based mainly on the costs follow the event principle.
Res judicata in case of resubmission arbitration proceedings; award of 'loss-of-value' damages caused due to the downgrading of the investment's value; determination of applicable interest rates on pre-sales damages, as well as pre-Award and post-Award damages.
Case report provided by International Arbitration Case Law (IACL)
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