News

Venezuela triumphs in Dutch Court of Appeals. A US$240 million claim brought by the members of the García Armas family was rejected based on their dual nationality in Manuel Garcia Armas and others v. Venezuela. According to Partner Ignacio Torterola, the judgment confirms that dual nationals bringing claims against their home state “is alien to international law, including investment law.” GST LLP served as counsel to Venezuela, while The Garcías were represented by Freshfields and Dechamps International Law.

Written by GST LLP’s Pablo Mori, this expert analysis spotlights the recent ICSID lawsuit against Peru pertaining to Law No. 31018, which establishes the suspension of toll collection across the country. The emergency law was enacted as a result of the COVID-19 pandemic.  In this, his second article chronicling the emergency legislation for Diario Gestión, Mori also looks at the state’s engagement with other road concessionaires and the international implications they may pose.

Pakistan has retained GST LLP in its application to annul an ICSID award ordering it to pay $800 million - one of the highest damages sums in the center’s history - for detaining power generation vessels used during a power crisis in Karachi. GST LLP’s Ignacio Torterola reports that the award, in favor of a Turkish company who leased the vessels “is as flawed as it gets,” failing to offer reasons for the damages which include ordering payment of interest relating to a matter occurring two years later.

GST LLP Partners Diego Gosis and Ignacio Torterola welcome the enforcement of security costs to protect against frivolous claims appearing before tribunals after two investment treaty cases against Venezuela were ordered to prove they have sufficient assets to pay costs if they lose. The García Armas family are pursuing UNCITRAL and ICSID under the Spain-Venezuela BIT over the expropriation of their food distribution businesses.

Relative to a multibillion-dollar mining rights claim over a valuation process in which Pakistan has requested disqualification by a Bulgarian arbitrator, GST LLP Partner Diego Gosis explains Pakistan’s concerns that the arbitrator refused to disclose “outrageous conflicts of interests.” A particular “modern” discounted cash-flow analysis has been applied which predicts inflated damages.