CYIL 2011

CZECH EXPERIENCE WITH BILATERAL INVESTMENT TREATIES: SOMEWHAT BITTER … ANNEX 2: Overview of investment disputes against the Czech Republic (by claimant) A. Finished claimed amount: unspecified Grounds: Actions of the Media Council concerning the broadcasting license for private TV station (TV NOVA). Media Council allegedly coerced investor to give up the legal framework protecting its investments, allowing the former partner of the investor to deprive the investment of its economic value. Outcome: Claim rejected on merits (2000) 2. CME Czech Republic BIT: Netherlands venue/rules: UNCITRAL claimed amount: USD 500 million Grounds: Actions of the Media Council concerning the broadcasting license for private TV station (TV NOVA). Media Council allegedly coerced investor to give up the legal framework protecting its investments, allowing the former partner of the investor to deprive the investment of its economic value. Outcome: Violation of the Treaty by the respont, compensation of USD 270 million awarded (2003) 3. William Nagel BIT: United Kingdom venue/rules: SCC claimed amount: USD 30 million Grounds: Claimant was interested in license for operation of a GSM network and concluded a coopera tion agreement with Czech Radio Communications. The Ministry of Economy then changed the policy and 1. Ronald S. Lauder BIT: USA venue/rules: UNCITRAL chose another applicant; the agreement with the claimant was terminated. Outcome: Claim dismissed as not concerning an investment (2003) 4. Saluka Investments BIT: Netherlands venue/rules: UNCITRAL claimed amount: CZK 40 billion Grounds: Non-provision of state aid to IPB, one of four major Czech banks, and further events leading to imposition of forced administration and sale of the bank. Outcome: Partial award – violation of the Treaty by the respondent (2006). Parties later settled for the amount of CZK 3.6 billion. claimed amount: EUR 96 million Grounds: Alleged discrimination towards the claimant’s daughter company in allocation of sugar produc tion quotas. Outcome: Violation of the Treaty by the respondent, compensation of EUR 25 million awarded (2007). 6. K+ Venture Partners BIT: Netherlands venue/rules: UNCITRAL claimed amount: CZK 140 million Grounds: Unpaid contractual bonuses for management of public funds aimed at supporting small and medium enterprises. Outcome: Parties settled, conditions undisclosed (2007). 5. Eastern Sugar BIT: Netherlands venue/rules: UNCITRAL

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