Summary

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Case report (free download)

Case Report by Marina Kofman and Gary Shaw

Summary

Claimant advanced claims on its own behalf and on behalf of its Salvadoran subsidiaries for damages, interest and costs related to Respondent's refusal to grant Claimant certain mining exploitation concessions. Claimant alleged that Respondent induced it to invest millions of dollars in its mining industry, leading Claimant to reasonably believe that it would be granted the concessions. Claimant argued that Respondent's "de facto ban" on mineral mining, announced by President Saca in March 2008, illegitimately swept aside the legal and regulatory regime upon which Claimant had relied, and eviscerated Claimant's rights under the Investment Law of El Salvador, The Constitution and general principles of international law.

Respondent argued that Claimant never made an admissible application for a mining exploitation concession under the Mining Law, and was therefore not legally entitled to any mining exploitation.

The Tribunal concluded that Claimant's application for an exploitation concession did not comply with the Mining Law. The Tribunal also held that Respondent could not be stopped from denying Claimant's application because Claimant failed to show an unequivocal act upon which Claimant relied. Therefore, because Claimant held no legal entitlement to Respondent's exploitation concession, its claims were dismissed.

Main issues

Res judicata - timing of objections under ICSID Arbitration Rule 41(1) - estoppel - statutory interpretation.

Pac Rim Cayman LLC v El Salvador - ICSID Case No. ARB/09/12 - Award - 14 October 2016

Case report provided by International Arbitration Case Law (IACL)