Infrastructure Services Luxembourg S.À.R.L & Anor. v Kingdom of Spain
[2023] EWHC 1226 (Comm)
Operafund Eco-Invest Sicav PLC & Anor v Kingdom of Spain
25 January 2024
[2024] EWHC 82 (Comm)
High Court
Spain lost a big international court case and is trying to get the decision overturned. A UK court decided to wait for a higher court's ruling on a similar case before making a final decision about Spain's objections. The court also ruled against Spain's claims that the other side hadn't been completely honest in their initial application.
Key Facts
- •Two claimants, Operafund and Schwab, obtained an ICSID award against Spain exceeding €33 million.
- •Spain applied to set aside the Registration Order that registered the ICSID award.
- •Schwab made a separate application to vary the Registration Order to allow enforcement before the appeal in a similar case is resolved.
- •Spain's challenges included state immunity, lack of jurisdiction, and alleged non-disclosure by the claimants.
- •A similar case, Infrastructure Services v Spain, was appealed to the Court of Appeal, impacting this case.
- •The case involved interpretation of the Arbitration (International Investment Disputes) Act 1966 and the State Immunity Act 1978.
- •The Court considered the duty of full and frank disclosure in ex parte applications for registration of ICSID awards.
Legal Principles
State Immunity
State Immunity Act 1978
Jurisdiction of English Courts to Register ICSID Awards
Arbitration (International Investment Disputes) Act 1966
Duty of Full and Frank Disclosure in Ex Parte Applications
CPR Part 62, Gold Reserve Inc v Bolivarian Republic of Venezuela [2016] EWHC 153 (Comm)
Effect of CJEU Decisions on ICSID Awards
Case law of the Court of Justice of the European Union (CJEU)
Interpretation of ICSID Awards
ICSID Convention
Outcomes
Spain's application to set aside the Registration Order was adjourned pending the Court of Appeal's decision in Infrastructure Services v Spain.
The Court deemed it inappropriate to decide on jurisdictional issues before the Court of Appeal's judgment, which would be binding.
Schwab's application to vary the Registration Order was partially granted.
The restrictive part of paragraph 2 of the Registration Order was modified to allow for a future hearing.
Spain's non-disclosure claim was dismissed.
The Court found no breach of the duty of full and frank disclosure by the claimants.
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