Summary

Reproduced from www.worldbank.org/icsid with permission of ICSID.

Notice of Arbitration

TABLE OF CONTENTS

A. DEMAND THAT THE DISPUTE BE REFERRED TO ARBITRATION
B. NAMES AND ADDRESSES OF THE PARTIES
C. ARBITRATION AGREEMENT OR CONTRACT INVOKED
D. BREACHES OF THE TREATY
1. National Treatment and MFN Treatment
2. Expropriation
3. Fair and Equitable Treatment
E. PROCEDURAL ISSUES, CONSENT & WAIVER
F. POINTS IN ISSUE
G. APPOINTMENT OF ARBITRATOR
H. THE GENERAL NATURE OF CLAIM
1. Riverside Is An Investor of the United States with an Investment in Nicaragua
2. The Respondent
3. Investment dispute over Nicaragua's Unlawful Actions
4. The First Invasion
5. The Second Invasion
6. Consequences of the Invasions
7. Land Invasions are Part of a Government Policy of Repression
8. Civic Organizations Confirm the Taking of Hacienda Santa Fé
I. BREACH OF THE TREATY
1. Facts Demonstrating a Breach of Fair and Equitable Treatment
2. Expropriation Facts
3. National Treatment and MFN Treatment
J. INTERNATIONAL LAW OF STATE RESPONSIBILITY
1. ResponsibilIty for government branches
2. Direction - ARSIWA Article 8
3. The Government admits the connection between the paramilitaries and the police
4. Article 11 - Acknowledgement & Adoption
K. DAMAGES
1. Expropriation Damages
2. Damages For Other Internationally Wrongful Acts
3. Claims under Article 16.1(a) cover the loss of the business
4. Arbitration & Legal Costs
5. Moral Damages
L. RELIEF REQUESTED

1) Pursuant to Article 36 of the Convention on the settlement of investment disputes between States and Nationals of Other States ("ICSID Convention"), Riverside Coffee LLC, ("Riverside" or "Investor" or Claimant") hereby submits its request to the Secretary-General of the International Centre for Settlement of Investment Disputes (the "Centre") to institute arbitration proceedings against the Republic of Nicaragua ("Nicaragua") under Articles 10.16, 10.17, and 10.18 of the Dominican Republic-Central America Free Trade Agreement ("CAFTA")

A. DEMAND THAT THE DISPUTE BE REFERRED TO ARBITRATION

2) Pursuant to CAFTA Article 10.16(3)(c) and CAFTA Chapter Ten and the Arbitration Rules of the International Centre for the Settlement of Investment Disputes ("ICSID Arbitration Rules") made under the ICSID Convention, the Investor initiates recourse to arbitration to recover damages for breaches by Nicaragua of its obligations under CAFTA Chapter Ten

...

C. ARBITRATION AGREEMENT OR CONTRACT INVOKED

6) This dispute is about Nicaragua's lack of compliance with its obligations in Section A of CAFTA Chapter Ten which has resulted in a catastrophic loss to Riverside's investment in Inagrosa. Investor's investment in Nicaragua and the damages that have arisen out of Nicaragua's breach of its obligation.

7) The Investor invokes Section B of Chapter Ten of the CAFTA as authority for this arbitration. Section B of CAFTA Chapter Ten sets out the provisions concerning the settlement of disputes between a Party and an investor of another Party

8) The CAFTA is a multilateral treaty that came into force between the parties on 1 April 2006 and remained in force as of the date of this Notice of Arbitration.11 The Republic of Nicaragua approved the CAFTA on 11 October 2005.12 The United States ratified the CAFTA on February 28, 2006

9) Further, the United States is a party to the ICSID Convention, as is the Republic of Nicaragua

10) Riverside Coffee, LLC is a limited liability corporation under the laws of the State of Kansas in the United States of America. 15 It was incorporated in 1999 and is a juridical national of the United States of America.

...

L. RELIEF REQUESTED

299) Because of Nicaragua's breach:

a. the business operations of Hacienda Santa Fé have been destroyed, resulting in loss to the Investment and the Investor,

b. the agricultural production at the Hacienda Santa Fé has been destroyed,

c. hardwood trees have been illegally harvested, and forests have been destroyed,

d. industrial equipment has been looted, and

e. threats of grievous bodily injury have been made to the management of the Hacienda Santa Fé.

300) The acts described herein have involved a breach of fair and equitable treatment and are uncompensated takings of the American Investor's investment. Further, Nicaragua has failed to provide treatment as favorable as that provided to others in Nicaragua who were not invaded and suffered the same improper actions, in violation of the national treatment and MFN Treatment obligations. Besides, others who have made investments in Nicaragua in like circumstances have received more favorable treatment than that received by the Investment and the Investor. Nicaragua has engaged in flagrant and systemic violations of its CAFTA Chapter Ten obligations. As a result of these internationally wrongful actions, the Investor and its investments in Nicaragua have suffered losses estimated at no less than US$590 million arising from the seizure of the Investments and the subsequent looting and destruction of Hacienda Santa Fé's facilities.

301) The Investor seeks the following relief:

a. Damages of not less than US$545 million as compensation for the economic loss, harm, and damage arising from Nicaragua's breach of its obligations in Section A of CAFTA Chapter Ten.

b. Moral damages of U.S. $45 million arising from the improper actions of Nicaragua against the Investor and the Investments;

c. Interest;

d. Costs of these proceedings, including all professional fees and disbursements plus interest;

e. Tax costs triggered by the governmental actions, fees, and expenses incurred to mitigate the effect of the unlawful measures taken by Nicaragua;

f. Pre-award and post-award interest on all amounts at a rate to be fixed by the Tribunal; and

g. Such further relief as counsel may advise, and the Tribunal may deem appropriate.

302) This request for arbitration is hereby signed and submitted this 19th day of March in accordance with Article 36 of the ICSID Convention and the Institution Rules therein.

Appleton & Associates International Lawyers L.P.
Barry Appleton,
Counsel for the Investor