Arbitration Team Coffee Break

NEWS

Università degli Studi di Milano launches master's in Global Litigation and Arbitration Management (GLAM)

The Università degli Studi di Milano has created a new second level master in Global Litigation and Arbitration Management. The course will be taught in English and will begin in January 2025. The GLAM master's program covers international (commercial and investment) arbitration, litigation before state and international courts and business administration.

Find out more here.

EU signs UN Convention on Transparency in Investment Arbitration

On 3 July 2024, the Council of the EU signed the United Nations Convention on Transparency in Investor-State Dispute Settlement (2014 Mauritius Convention) following its decision adopted on 25 June 2024. The Convention allows for the application of the UNICITRAL transparency rules to investment treaties concluded before 1 April 2014. Regarding investment treaties concluded on or after 1 April 2014, the transparency rules automatically apply to disputes initiated under the UNICITRAL Arbitration Rules, unless the parties agree otherwise.

The rules require all documents, including tribunal decisions and party submissions, to be made public. Hearings must be open to the public. And interested parties should be allowed to make submissions to the tribunal. Hence, the Convention supplements pre-existing investment treaties with respect to transparency-related obligations.

In the framework of the Convention, the Transparency Registry functions as the central repository to make investor-state dispute settlement cases and related documents accessible to the public.

Dubai International Financial Centre Court confirms major financial award in Iraqi corruption case

The Dubai International Financial Centre (DIFC) Court has upheld a USD1.6 billion ICC arbitration award against Iraqi businessman Sirwan Barzani, rejecting efforts to overturn it. Barzani, a cousin of the president of Iraq’s Kurdistan region, and Korek Telecom were accused of bribing Iraqi officials to sway a regulatory decision that ousted Iraq Telecom from a joint venture. The court dismissed claims that the evidence used in the tribunal was obtained unlawfully, affirming that UAE public policy hadn't been violated. This decision comes after Iraq Telecom successfully enforced the award in multiple jurisdictions, including the US and the Cayman Islands. Barzani and Korek Telecom are now considering further legal options in response to the ruling.

UK announces withdrawal from the Energy Charter Treaty

The UK has notified its withdrawal from the Energy Charter Treaty (ECT). The exit is set to take effect on 27 April 2025. This decision applies to Great Britain, Northern Ireland, and the Crown dependencies of Guernsey, Jersey, and the Isle of Man. The move supports the UK's commitment to achieving net zero emissions and enhancing energy security.

On this issue see our previous newsletters here and here.

ICC decision to eliminate FIDIC Observer Role

The ICC International Court of Arbitration discontinued the role of "FIDIC observer” held by Christopher Seppälä, after his mandate ended in June 2024. It has been questioned whether the influence on draft awards related to FIDIC contracts could have been jeopardized by this figure. Hence, such a decision followed the court’s evolving practices, noting that experienced court members will continue to handle FIDIC-related matters. The ICC confirmed that while Seppälä provided insights from a FIDIC perspective, his comments were non-binding and didn't affect the court's independent review process.

Effective third-party notices in arbitration: DIS introduces new supplementary rules

As of 15 March 2024, the German Arbitration Institute (DIS) has introduced Supplementary Rules for Third-Party Notices (DIS-TPNR), a pioneering framework to address third-party claims in arbitration. These rules, developed by a DIS working group since 2021, aim to prevent the “recourse trap” where parties face inconsistent outcomes in related disputes.

The DIS-TPNR allow parties to include third parties in an arbitration process, with these third parties participating as interveners without affecting the main arbitration claims. This approach helps maintain procedural efficiency and consistency across related disputes. The rules require parties to agree to their use at the outset of their contracts and allow third parties to be involved in the arbitration process, enhancing the flexibility and effectiveness of arbitration under DIS.

Court of Appeals for the District of Columbia ruling following Micula Case

On 14 May 2024, the Court of Appeals for the District of Columbia ruled on the dispute (Docket No. 23-7008) involving Swedish entrepreneurs, including the Micula brothers, and Romania, following a decision of the District Court of Columbia of 2019.
The case revolved around several entrepreneurs and companies who, encouraged by tax incentives offered by Romania, invested in economically disadvantaged regions. However, as Romania prepared to join the EU, the government halted the incentives, prompting the investors to seek arbitration. In 2013, the arbitration tribunal ruled in favour of the investors, awarding USD 356,439 million in damages. Romania argued that the arbitration clause contained in the Bilateral Investment Treaty (the “BIT”) between Sweden and Romania - which included a provision stating that disputes between investors and the signatory countries should be decided by an arbitral tribunal - was null and void from the moment of the accession of Romania to the European Union. The Court of Appeals of the DC upheld the arbitral award and the district court's ruling, clarifying that since Romania had not yet joined the EU when the events occurred, the arbitration agreement remained applicable. Additionally, the award did not involve the interpretation of EU law. The appellate judges also stated that the 2022 judgment of the Court of Justice of the European Union (C-638/19), invoked by Romania, did not in any way establish the retroactive application of EU rules to facts that occurred prior to EU accession. Therefore, the nullity of both the award and the district court's ruling was excluded.

 

EVENTS

IBA Annual Conference – Mexico City, 15-20 September 2024

IBA (International Bar Association) hosted its 2024 Annual Conference in Mexico City on 15 September. DLA Piper partner Stefano Modenesi served as a panellist in a discussion on interim measures in arbitration.

PWC Conference – Milan, 18 September 2024

On 18 September, PWC hosted a conference in its Milan office titled “La consulenza tecnica nell’arbitrato”. Federica Bocci, DLA Piper counsel, was among the speakers at the event.

Australian Arbitration Week 2024 – Brisbane, 13-18 October 2024

On 13 and 18 October 2024 in Brisbane, the Australian Centre for International Commercial Arbitration (ACICA) and the Chartered Institute of Arbitrators Australia (Ciarb) Australia will host the 12th annual Australian Arbitration Week, titled “Powering the Future and Going for Gold: Is Arbitration Ready?”

Managing Disputes in the Space Sector – Milan, 15 October 2024

On 15 October 2024, AA40 - The Italian below40 Arbitration Association and the Space Arbitration Association will hold a conference at DLA Piper’s Milan office, focusing on “Managing Disputes in the Space Sector”. Stay tuned for more details!

Hong Kong Arbitration Week – Hong Kong, 21-25 October 2024

The Hong Kong Arbitration Week will take place from 21 to 25 October 2024 in Hong Kong, in collaboration with the Hong Kong International Arbitration Centre (HKIAC).

You can register here.

SCC Arbitration Week – Stockholm, 21-25 October 2024

The SCC Arbitration Week will take place from 21 to 25 October 2024 in Stockholm, in collaboration with the SCC Arbitration Institute. Find out more about online and in-person events here.

CAM Annual Conference – Milan, 29 November 2024

Save the date for the Milan Chamber of Arbitration’s 15th Annual Conference, which will take place in Milan, Italy on 29 November 2024. Stay tuned for this year’s programme!

AIA Conference – Rome, 6 December 2024

AIA (Associazione Italiana per l'Arbitrato) will hold its annual conference titled “The arbitration agreement: the choice, the coiches” on 6 December 2024, in Rome. Stay tuned for more information.

 

FROM THE BOOKSHELF

The Award in International Investment Arbitration, Katia Fach Gómez and Catharine Titi

On 26 September 2024, Oxford University Press will publish the handbook "The Award in International Investment Arbitration", edited by Katia Fach Gómez, Senior Lecturer in Private International Law at the University of Zaragoza, and Catharine Titi, Tenured Research Associate Professor at the French National Centre for Scientific Research.

The handbook offers an in-depth and authoritative exploration of the international investment award, making it an essential reference for both practitioners and academics. It aims to cover every aspect of the award process, from drafting the award to the procedural principles governing arbitral deliberations, with a focus on tribunal dynamics and post-award challenges.

The approach of the handbook is designed to provide practitioners with practical insights into key topics such as fact-finding in complex disputes, the role of experts, and strategies for effective legal reasoning and persuasion. It also addresses cutting-edge developments, including the impact of technology on award drafting.

Endorsed by distinguished practitioners and scholars, this handbook is poised to be a must-have addition to your bookshelf!