issue #11, week 14. 02 April 2008
Prepared by TDM and Aloysius Gng (CEPMLP/Dundee)
TDM News Digest
provides a condensed overview of recent events of interest to the international arbitration community.
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- Special Issue on Mergers and Acquisitions (M&A) Disputes and International Arbitration
Editor: Beata Gessel-Kalinowska vel Kalisz; Reviewers: Cecilia Carrara & Luminita Popa - Special Issue on Sanctions and International Arbitration: Impact on Substantive and Procedural Issues
Editors: Ali Burney, Rinat Gareev, Kiran Nasir Gore, Prof. Joel Slawotsky, May Tai - Special Issue on National Courts as a Forum for the Resolution of Disputes under Article 26 Energy Charter Treaty
Editors: John Gaffney, Richard Happ, Lucia Raimanova, Anna-Maria Tamminen, Catharine Titi - Special Issue on International Investment Arbitration - Environmental Protection and Climate Change Issues (Vol 4+)
Editors: Prof. Dr A F M Maniruzzaman, Kiran Nasir Gore, Prof. Dr Stephen Minas - Special Issue on The African Continental Free Trade Agreement (AfCFTA)
Editors: J. Chaisse, J. Górski, E. Laryea, M.M. Mbengue, and K. Olaoye
Recent issues:
- TDM 5 (2018) - Strategic Considerations in Energy Disputes
- TDM 6 (2018) - FDI Moot 2018
- TDM 5 (2018) - Regular issue
- TDM 4 (2018) - Time and Cost Issues in International Arbitration
- TDM 3 (2018) - Sir Elihu Lauterpacht QC
- TDM 2 (2018) - International Commercial and Investment Disputes in and with India
- TDM 1 (2018) - Regular issue
- TDM 5 (2017) - FDI Moot 2017
- TDM 4 (2017) - Comparative and International Perspectives on Mediation in Insolvency Matters
- TDM 3 (2017) - One Belt One Road (OBOR)
- TDM 2 (2017) - Non-Legal Adjudicators in National and International Disputes
- TDM 1 (2017) - Regular issue
- TDM 6 (2016) - FDI Moot 2016
- TDM 5 (2016) - Latin America (vol. 2)
- TDM 4 (2016) - Africa
- TDM 3 (2016) - Three Centuries of Arbitration for Peace
- TDM 2 (2016) - Latin America
- TDM 1 (2016) - CETA
- TDM 7 (2015) - FDI Moot 2015
- TDM 6 (2015) - Regular issue
- TDM 5 (2015) - Yukos Special - OGEL 5 (2015) - Yukos Special
- TDM 4 (2015) - ArbitralWomen/TDM: Dealing with Diversity in International Arbitration
- TDM 3 (2015) - Renewable Energy Disputes - OGEL 3 (2015) - Renewable Energy Disputes
- TDM 2 (2015) - Arbitration in the Middle East: Expectations and Challenges for the Future
- TDM 1 (2015) - The Pacific Rim and International Economic Law: Opportunities and Risks of the Pacific Century
- TDM 6 (2014) - Dispute Resolution from a Corporate Perspective
- TDM 5 (2014) - FDI Moot 2014
- TDM 4 (2014) - CILS - 8th Biennial Symposium on International Arbitration and Dispute Resolution
- TDM 3 (2014) - Regular issue
- TDM 2 (2014) - The New Frontiers of Cultural Law: Intangible Heritage Disputes
- TDM 1 (2014) - Reform of Investor-State Dispute Settlement: In Search of a Roadmap
- TDM 6 (2013) - FDI Moot 2013
- TDM 5 (2013) - Art and Heritage Disputes in International and Comparative Law
- TDM 4 (2013) - Ten Years of Transnational Dispute Management
- TDM 3 (2013) - Corruption and Arbitration
- TDM 2 (2013) - EU, Investment Treaties, and Investment Treaty Arbitration - Current Developments and Challenges
- TDM 1 (2013) - Aligning Human Rights and Investment Protection
- TDM 5 (2012) - Legal Issues in Tobacco Control
- A Liber Amicorum: Thomas Wälde - Law Beyond Conventional Thought
- TDM 5 (2011) - Resolving International Business Disputes by ADR in Asia
- TDM 4 (2011) - Contingent Fees and Third Party Funding in Investment Arbitration Disputes
- TDM 3 (2011) - Intersections: Dissemblance or Convergence between International Trade and Investment Law
NEWS
Neste Oil and YIT contract dispute goes to Court of Arbitration
April 1, http://www.nesteoil.com/default.asp?path=1;41;540;1259;1261;9663;10070
The disagreement that has arisen in the final financial settlement for the mechanical installation work of production line 4, which was completed at Neste Oil's Porvoo oil refinery last summer, has been brought to the Court of Arbitration for a decision. Neste Oil's claims against YIT Industrial and Network Services amount to around EUR 36 million and they comprise mainly damages based on the delay to the contract. Neste Oil is reserving the right to further specify its claims.
YIT has presented counter claims against Neste Oil for an amount of around EUR 25 million. The principle bases of these claims are the work performed under the contract and the additional costs that arose from the prolongation of the project.
Both parties contest the claims made against each other.
...
Russia: Parlement adopts foreign investment law
April 2, http://business.iafrica.com/worldnews/509241.htm
Russia's parliament on Wednesday adopted a law limiting access for foreign investors to key sectors of the economy including the oil and gas industries, in a third and final reading.
...
Bulgaria/Turkey: CCG ready to withdraw claim against NEC
March 31, http://www.sofiaecho.com/article/turkish-company-ready-to-withdraw-claim-against-nec/id_28484/catid_67
The Bulgarian Government has tied in the withdrawal of the 75 million euro claim lodged by CCG Insaat Sanayi Yatirim Ve Turizm of Turkey with the International Court of Arbitration (IIA) against Bulgaria's power grid operator National Electric Company (NEC) with the construction of Tundzha dam.
Bulgarian Economy and Energy Minister Petar Dimitrov made the announcement a day after the visit of Turkish Prime Minister Recep Tayyip Erdogan in Bulgaria.
A number of sources, quoted by Dnevnik daily on March 31, said Dimitrov had a series of meetings with businessman Mahmoud Ceylan, who was part of the Turkish delegation in Bulgaria. CCG Insaat, which inherited the claims from Ceylan, filed the lawsuit in summer last year and currently the litigation is ongoing in the Geneva court.
According to local lawyers, Ceylan has all chances to win the lawsuit. The Turkish company claims that it suffered losses on NEC's decision to pull in a new strategic investor in the Gorna Arda cascade. NEC is also said to have defaulted on its commitment to lay aside all the revenues from Turkey-bound electricity exports for the construction of Gorna Arda.
The claim also deprived the company off the right to challenge the revocation by the government of the 35-year concession for the dam. Dimitrov also said that the Government would shortly look for an investor into the yet-to-be-built Gorna Arda cascade.
...
Czech Republic Defeats ArcelorMittal In International Arbitration
March 26,
http://www.easybourse.com/bourse-actualite/
arcelormittal/czech-republic-defeats-arcelormittal-in-international-LU0323134006-421555
The Czech Republic defeated a long-running arbitration claim by steel maker ArcelorMittal (MT), the country's finance ministry said Wednesday. The International Chamber of Commerce in Paris, or ICC, ruled ArcelorMittal isn't entitled to 5.79 billion koruna ($355.7 million) in damages from the Czech state.
The arbitration centered on the Czechs preventing ArcelorMittal from buying an outstanding minority stake in the former Nova Hut, a Czech steel mill purchased by Mittal Steel earlier this decade.
ICC ruled ArcelorMittal must pay the Czech Republic's legal costs of roughly EUR500,000 stemming from the arbitration.
...
PKN Orlen: Arbitration Ruling Favors Polish Polkomtel Holders
March 28, http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200803281306DOWJONESDJONLINE000795_univ.xml
Polish oil company PKN Orlen (PKN.WA) said Friday an arbitration court in Vienna ruled in favor of Polish shareholders in mobile firm Polkomtel, in which it has a stake.
PKN Orlen, KGHM (KGH.WA), and two other Polish state-run companies in 2006 agreed to buy a 19.6% stake in Polkomtel from Denmark's TDC (TDC.KO) for EUR650.5 million.
...
Bangladesh Accepts More Terms In Foreign Trade
March 27, http://www.allheadlinenews.com/articles/7010457986
The Bangladesh Bank (BB), the country's central bank, has accepted more terms in foreign trade as specified by INCOTERM to facilitate the country's export businesses, officials say in the capital, Dhaka on Thursday.
"We are now flexible in following appropriate international trade terms as specified under the INCOTERM that has been prescribed by the International Chamber of Commerce (ICC)," a BB senior official told AHN Media Corporation in Dhaka. The INCOTERM is a term that defines who will bear the cost of transportation and risk in international trade.
Following the deal, U.K. phone giant Vodafone PLC (VOD), which owns another 19.6% of Polkomtel, filed a lawsuit to block the deal, arguing that it had the right of first refusal on TDC's stake.
...
Uganda: Regional Trade Arbitration Necessary
March 27, http://allafrica.com/stories/200803280033.html
THE Kampala City Traders Association (KACITA) is demanding sh20b in compensation from the Kenya government for losses its member incurred in the post-election chaos in that country. KACITA is threatening to boycott the Mombasa route if Kenya does not respond to their grievances within two weeks.
The Kenyan High Commission in Kampala says they are aware of the issue and they are taking the necessary steps.
KACITA are within their rights to demand compensation. The free movement of goods and services more than documents is what will cement the community.
...
Air Maldives files RM140mil counterclaim against MAS
March 25, http://biz.thestar.com.my/news/story.asp?file=/2008/3/25/business/20080325182349&sec=business
Air Maldives Ltd has filed and served a defence and counterclaim amounting to US$43.62mil (RM140mil) against Malaysian Airline System Bhd (MAS) over a management agreement signed in 1996.
MAS told Bursa Malaysia on Tuesday the countersuit was related to legal action it had taken against Air Maldives on Aug 8 last year. It had then filed an affidavit in the Kuala Lumpur High Court against Air Maldives, claiming US$35.55mil.
...
USA: Best US Graduate Schools: Law Specialty Rankings - Dispute Resolution
http://grad-schools.usnews.rankingsandreviews.com/grad/law/dispute
- Pepperdine University
- Harvard University / University of Missouri
- ...
Court of Appeal allows document disclosure in English arbitration
March 24, http://www.thelawyer.com/cgi-bin/item.cgi?id=131849&d=415&h=417&f=416
XXIV Old Buildings has scored a Court of Appeal victory allowing documents generated for an English arbitration to be disclosed for the purposes of proceedings in New South Wales (NSW) and British Virgin Islands (BVI). Lord Justice Collins, who led the ruling, said the appeal was of "considerable practical importance relating to confidentiality in national and international arbitration".
The case concerned a dispute between former Richards Butler partner John Emmott and English-qualified Michael Wilson. Emmott left Richards Butler in 2001 to join BVI-incorporated Michael Wilson & Partners (MWP) to provide legal services to Kazakhstan.
...
Dutch give hope to Yukos investors
March 27, http://www.ft.com/cms/s/0/201e6084-fb9e-11dc-8c3e-000077b07658.html?nclick_check=1
More than 50,000 shareholders of Yukos may finally be able to receive some compensation for their losses after the last material creditor of the bankrupt Russian oil company was paid $850m by a Dutch subsidiary.
Moravel Investments, a subsidiary of GML - the former Yukos parent company - was paid almost $850m out of Yukos foreign assets held in Dutch subsidiaries and under Dutch law on March 14, after a Dutch court on March 6 held that it was a legitimate creditor.
...
Singapore: Low cost a big draw for arbitration centre
March 26, http://www.businesstimes.com.sg/sub/supplement/story/0,4574,272592,00.html
THE compelling combination of low cost and convenience is Singapore's biggest advantage as an international maritime arbitration centre. However this is often overlooked because people have a mindset that gravitates towards London, says the Singapore Chamber of Maritime Arbitration's (SCMA) counsel and assistant registrar Sheila Lim.
However, while Singapore's modernity and efficiency are its strong suits, London has hundreds of years of tradition as a maritime centre behind it. This is understandable as Singapore's centre has only been around for four years since it was inaugurated in November 2004. This factor is largely behind the ingrained mindset which causes many parties to list London by default as the arbitration centre in the arbitration clauses of their contracts.
Telenor dismisses 1 bln usd Alfa arbitration proceedings as having 'no merit'
March 25, http://www.forbes.com/markets/feeds/afx/2008/03/25/afx4811047.html
Telenor says new 1 bln usd arbitration proceedings brought against it by Russian investment group Alfa have 'no merit'. Earlier, Alfa subsidiary Eco Telecom announced is has commenced arbitration proceedings against Telenor.
...
ICC arbitration court outlines plans to set up shop in Asia
March 24, http://www.thelawyer.com/cgi-bin/item.cgi?id=131836&d=415&h=417&f=416
The International Chamber of Commerce (ICC) International Court of Arbitration is set to launch two new offices in Asia by the end of the year. The offices, which will be based in Hong Kong and Singapore, come as a direct response to the ICC's strategic survey in 2007. The study concluded that the arbitration court needed greater visibility in Asia due to the region's growing importance.
...
HKIAC Aims to promote Hong Kong as the leading place in Asia to conduct arbitrations
March 26, http://www.hkiac.org/
The Hong Kong International Arbitration Centre is pleased to announce the successful completion of the Professional Services Development Assistance Scheme (PSDAS) project (Ref. 2003-2-2). With the financial assistance made available through the PSDAS, as administered by the Commerce and Economic Development Bureau of the Government of HKSAR, the Hong Kong International Arbitration Centre (HKIAC) promoted Hong Kong arbitral services to the business community in the United States of America.
The key objectives of the PSDAS project was to promote benefits of holding International Arbitration hearings in Hong Kong and to maintain and improve Hong Kong's position as one of the leading arbitration and dispute resolution centres in the Asia-Pacific Region.
...
PDVSA's Audited Financial and Operative Results 2007 approved
PDVSA's Audited Financial and Operative Results 2007 were approved yesterday by their Shareholders Meeting.
According to the Report the corporation has operational revenues of 96 Billion US$ worldwide since they were able to sustain a 3.32 Million b/d production of petroleum and natural gas liquids.
Other important figures showed in the Report:- That PDVSA was able to cut their costs and expenses from 78 Billion US$ in 2006 to 72 Billion US$ on 2007 or a reduction of 8% from the last year.
- That PDVSA possesses 107 Billion US$ in assets and net assets worth for about 56 Billion US$.
- That PDVSA profits grew more than 11% comparing to the last fiscal year and contributed to the State with more than 43 Billion US$. The biggest fiscal contribution came in form of Income Tax (8 Billion US$) and Royalties (17 Billion US$).
More information at the PDVSA's web page, where you can find the Financial and Operative Results 2007 Reports and related information. (www.pdvsa.com)
PODCASTS
John Heaps, of Eversheds, on Mediation and Dispute Metrics in a Law Firm Culture
This week, Mike talks with John Heaps, a partner in Eversheds' London office who oversees the firm's litigation team. John explains the firm's unique conflict resolution practices, including how 350 Eversheds attorneys got conflict resolution educations and fresh diplomas. He also discusses the firm's project management approach, which has earned Eversheds its position as sole litigation provider for a major multinational corporation, and, last year, an honorable mention for the inaugural 2007 CPR Law Firm Award.
EVENTS
Resolving Business Disputes in Today's China 18 April
The Sheraton Hotel, Stockholm, Sweden
http://www.jurisconferences.com/arbitration.php?id=14
China is experiencing remarkable economic growth. But the other side of the current "China boom" is a dramatic increase in disputes.
- What options are available to investors, traders and bankers when involved in a China business dispute?
- Which methods work best?
- Can foreigners win in Chinese courts?
- Is arbitration in China fair?
- Is mediation an effective alternative?
These are just some of the questions that Conference speakers -- all leaders in the field of China dispute resolution – will address.
Conference program and registration available at http://www.jurisconferences.com/arbitration.php?id=14
International Law Society: The Backlash Against Investment Arbitration Conference April 19, 2008
http://www.law.harvard.edu/students/dean/index.ils.php
The unprecedented growth of investment arbitration over the last two decades has led to calls for greater transparency and third-party participation. When international arbitrators sit in judgment over national policies, some stakeholders challenge their legitimacy to do so and allege conflicts of interest. This conference will look closely at these and other challenges to arbitration, and evaluate the likelihood of a backlash against investment arbitration.
Speakers include William P. Alford; Emmanuel Gaillard; Gabriel Bottini; William Burke-White; August Reinisch; Richard Kreindler; Christina Knahr; Brigitte Stern; Stanimir Alexandrov; Nigel Blackaby; Gus van Harten; William W. Park; Louis T. Wells.
Detailed programme and registration available at http://www.law.harvard.edu/students/dean/index.ils.php
Remedies in Commercial, Investment, and Energy Arbitrations, April 17 - 18
Houston, St. Regis Hotel, http://www.utcle.org/conference_overview.php?conferenceid=796
What can the arbitrator do in fashioning remedies in commercial, investment and energy arbitrations? This program - jointly sponsored by the Permanent Court of Arbitration (PCA), the Houston International Arbitration Club (HIAC), and The University of Texas School of Law - brings together an internationally- renowned faculty from Europe, Latin America, Canada and the U.S., in a special conference focused on the law, economics, advocacy and enforcement of remedies in commercial and investment cases.
The conference blends analysis with practical application of economic and legal principles to solve real problems facing the international energy and construction sectors. Keynote speaker V. V. "Johnny" Veeder leads a distinguished opening panel that examines these issues, and also delivers the keynote luncheon address on Thursday. The conference ends with a distinguished General Counsel's panel, including counsel from ExxonMobil, ConocoPhillips, Baker Hughes, and Grupo ICA. Don't miss this unique and valuable program!
Last day for early registration: April 9, 2008—5 p.m. CST more information at the conference website http://www.utcle.org/conference_overview.php?conferenceid=796
ICC conference marks 10th year of arbitration rules - 23 April
March 28, http://www.iccwbo.org/iccbjhha/index.html
To celebrate the 10th anniversary of the ICC rules of arbitration this year, the ICC International Court of Arbitration will hold a high level conference in Paris on 23 April.
The ICC rules of arbitration are now a fixture in dispute resolution and have been used to successfully resolve thousands of disputes throughout the world. The event will look at the impact of the 1998 rules over the last decade and consider developments in the practice of the ICC International Court of Arbitration.
...
ICC: Combined techniques for resolving disputes, May 22
April 2008, http://www.iccwbo.org/iccbjiha/index.html
Dispute resolution clauses that combine different kinds of procedures will be the subject of a seminar organized by ICC in collaboration with its French national committee, ICC France, on 22 May 2008.
...
4th Annual CPR European Congress, 15-16 May, 2008
Le Méridien Vienna - Vienna, Austria, http://vienna.cpradr.org
Join leadership from Nestlé, Northrop Grumman, CEDR, Freshfields Bruckhaus Deringer, IBM, Duke University, University of Vienna, Shell International, and Pepperdine University as they explore the art and practice of international commercial conflict resolution.
Topics will include:
- Overcoming Impasse
- Commercial Dispute Resolution Solutions
- Pledges, Contracts & Pre-Dispute Tools
- Dispute Management Processes
- Mediation in Austria
- Mediator Accreditation
- Corporate Social Responsibility & ADR
Keynote Address by Eric Green: "Complex International Mediation" Considered to be a founder of modern mediation, Eric Green has served in hundred of cases, including the Enron securities class action, Visa/MasterCard anti-trust cases, and U.S. v. Microsoft.
Workshop - 14 May: What is Commercial Mediation? This one-day workshop, which takes place the day before the Congress, is aimed at business managers and their legal counsel who want to learn about commercial mediation: how it works, its commercial benefits, and how it can be used to create economies for business-to-business trade.
Registration Now Open at http://vienna.cpradr.org
Foreign Direct Investment International Moot Competition - Investor-State Arbitration: Perspectives on Legitimacy and Practice
Foreign Direct Investment International Moot Competition - Investor-State Arbitration: Perspectives on Legitimacy and Practice
The FDI Moot promotes an understanding of international investment laws and of arbitration as an effective mechanism for the adjudicating international investment disputes. The event attracts not only the student participants but also lawyers from the around the world, who act as judges as part of a program that allows them also to discuss in a collegial environment developments affecting the field. The FDI Moot involves a hypothetical case in connection with an investment by a private foreign investor. Each year’s hypothetical is prepared by the competition’s Advisory Board, composed of distinguished academics and practitioners in the fields of international arbitration, investor-State arbitration and international investment regulation.
October 31 - November 2. Boston, Massachusetts.
More information is available at www.fdimoot.org.
MOVES / JOBS
Hong Kong Centre Seeks New Secretary General
March 28, http://www.hkiac.org
The Hong Kong International Arbitration Centre (HKIAC) announced that it has begun a search to appoint a new Secretary General. The post will become vacant later this year when Christopher Wing TO, who currently holds the position, departs to join a Hong Kong Government statutory body.
"Christopher has done an absolutely stellar job as Secretary General", said Dr. Michael MOSER, Chairman of the HKIAC. "He has made an important contribution to the HKIAC's growth over the years and we are extremely grateful to him."
Mr. TO, who has been with the HKIAC for the past 10 years, said: "I have very much enjoyed my time working at the HKIAC and with colleagues in the world of international arbitration. However, I feel that now is the time to move on and pursue a different career challenge." TO will become Executive Director of the Hong Kong Construction Industry Council.
The HKIAC is one of the world's leading international arbitration bodies. Last year, it administered more than 400 cases. The HKIAC Secretary General heads a staff of 8 with premises in Hong Kong's Exchange Square. The HKIAC is looking to recruit a highly motivated professional with administrative experience who is fluent in English and Chinese (Cantonese and Putonghua). A competitive compensation and benefits package is being offered. Interested candidates may apply by sending their details to chairman@hkiac.org.
...
NAFTA Arbitration Chief Andrea Menaker Joins White & Case
http://www.whitecase.com/News/Detail.aspx?news=2052
White & Case LLP announced that Andrea Menaker, outgoing chief of the NAFTA Arbitration Division for the US State Department, is joining the Firm's International Arbitration Group as a partner in its Washington, DC, office.
...
ICC left reeling as arbitration court chairman Tercier resigns
March 31, http://www.thelawyer.com/cgi-bin/item.cgi?id=131959&d=415&h=417&f=416
The resignation of Pierre Tercier as chairman of the International Chamber of Commerce's (ICC) International Court of Arbitration has given the impression that the organisation is in turmoil.
Last week Tercier shocked the arbitration world by taking the decision to stand down at the end of June. The ICC says Tercier's decision to leave was due to his "divergent views on the organisational relationship between the court and the general secretariat of the ICC"
...