Arnold & Porter Secures Definitive Victory for EDF International and Others in Long-Running ICSID Arbitration against Argentina
An arbitral panel of the World Bank-affiliated International Centre for Settlement of Investment Disputes (ICSID) recently dismissed an annulment petition filed by the Argentine Republic, thereby rendering final and definitive a $136 million arbitration award issued in June, 2012 in favor of French power company Électricité de France International SA; French infrastructure, water and waste management company Saur International SA, and the Luxembourg-based company León Participaciones Argentinas SA., all of which were represented by Arnold & Porter LLP (both in the original arbitration and in the recently concluded annulment proceeding). The dispute related to the impact on the claimants of economic measures enacted during Argentina's financial crisis in 2001-2002, which adversely affected their investments in Argentina.
In the original arbitration, which lasted from 2003 until 2012, the Claimants had prevailed on the basis of claims asserted pursuant to the bilateral investment treaty in force between France and Argentina. In the subsequent annulment proceeding, commenced at the behest of Argentina, the ICSID panel (which was comprised of Sir Christopher Greenwood, CMG, QC (President), Professor Teresa Cheng, SC, and Professor Yasuhei Taniguchi) disagreed with all of Argentina's allegations and arguments, and dismissed the annulment petition in its entirety. In addition, the Argentine Republic was ordered to bear the costs of the proceeding.
The recent decision means that the firm's clients can now collect the sums due under the 2012 award, which, pursuant to a July 2012 enforcement order issued by the U.S. District Court for the Southern District of New York, amounted to over US$202 million with interest, as of the date of the order. Updated with interest through the present, the relevant amount is approximately US$220 million. Arnold & Porter's legal team was led by Paolo Di Rosa, head of the firm's International Arbitration practice, and included Mallory Silberman and Pedro Soto.