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Stockholm Arbitration Report (SAR) - (Individual Back Volumes)
Stockholm Arbitration Report (SAR) - (Individual Back Issue)
Preview Page SAR 2004 - 1
SUBJECT-MATTERS:
(1) Interpretation of a Bilateral Investment Treaty.
(2) Whether the Claimant had an asset which constituted an
investment under the Bilateral Investment Treaty.
(3) Period of limitation under the Bilateral Investment Treaty.
(4) Costs incurred by the Respondent for legal representation
(5) Apportionment of the arbitration costs as between the parties
FINDINGS:
(1) Legal terms in an international treaty should be considered to have
an autonomous meaning appropriate to the contents of the
specific treaty, not necessarily being the same as similar terms in
the domestic law of the contracting parties.
(2) Rights derived from a co-operation agreement between the
Claimant and a state owned enterprise were not deemed by the
Arbitral Tribunal to have a financial value, and therefore did not
constitute an investment in the meaning of the Bilateral
Investment Treaty.
(3) The limitation rules of domestic law are not directly relevant in
respect of a claim arising from an international treaty; international
standards apply.
(4) The Arbitral Tribunal found the amount claimed by the
Respondent in legal fees to be remarkably high and awarded an
amount 30 % lower.
(5) The Arbitral Tribunal found that some costs and expenses of the
Respondent related to specific objections raised by the
Respondent which were rejected by the Tribunal, and therefore
awarded the Claimant to reimburse only 80 % of the
Respondent’s costs, in spite of the fact that the Arbitral Tribunal
had reached the conclusion that the Claimant’s claims were to be
dismissed in their entirety. In view of the outcome, the Arbitral
Tribunal found that the Claimant should be ultimately responsible
for 90 % and the Respondent for 10 % of the arbitration costs.
PARTIES:
Claimant: Mr X (United Kingdom)
Respondent: The Republic (in Central Europe)
