Summary

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Case Report (free download)

Case Report by Nodir Malikov, Editor Ignacio Torterola

Summary

Mr. Marko Mihaljevic ("Claimant") filed ICSID arbitration against the Croatian government ("Respondent") invoking the provisions of the Bilateral Investment Treaty between Croatia and Germany dated March 21, 1997 ("Treaty"). Claimant alleged that the Croatia's actions pertaining to the property that was allegedly owned by Claimant. Croatia challenged the Tribunal's jurisdiction on two independent grounds: (1) an active citizenship of the Claimant with Respondent, thus automatically barring Tribunal's jurisdiction under Article 25 of ICSID Convention ("Citizenship Issue"), and (2) Claimant lacked the standing with respect to the subject property because he never owned it ("Property Ownership Issue"). The Tribunal rejected rationae personae jurisdiction and dismissed Claimant's request for relief on the basis of analysis of the Citizenship Issue, while not addressing the Property Ownership Issue.

Main issues

Whether dual nationality of the Claimant under Article 25(2)(a) of the ICSID Convention precludes the Tribunal's jurisdiction over Respondent. Specifically, the Tribunal addressed the following (a) the dates from which the nationality needs to be determined for the purposes of the ICSID Convention, (b) whether the Claimant's citizenship was effectively renounced, (c) whether the Claimant's attempts to renounce Croatian citizenship manufactured to abuse the process.

Marko Mihaljevic v Republic of Croatia - ICSID Case No. ARB/19/35 - Award and Concurring opinion Maria Vicien-Milburn - 19 May 2023

Case report provided by International Arbitration Case Law (IACL)

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