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English Court of Appeal: ICSID Article 54 entails SIA s2 submission; adjudicative immunity cannot bar registration of awards against states (Spain and Zimbabwe)

Published on: 12 December 2024

Published by a Law360 reporter
Legal News
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Article summary

The latest caseload figures from the International Centre for Settlement of Investment Disputes indicate that 341 proceedings were administered in the 2024 financial year, with 58 fresh cases registered—both rankings the second‑highest in ICSID’s records. With such a volume of investor–state controversies, a pressing issue is whether states can rely on state immunity to prevent the registration of ICSID awards made against them. In a conjoined appeal decided on 22 October 2024 involving Spain and Zimbabwe (Infrastructure Services Luxembourg Sarl and another v The Kingdom of Spain; Border Timbers Ltd and another v Republic of Zimbabwe [2024] EWCA Civ 1257), the English Court of Appeal reinforced England’s reputation as a creditor‑friendly, pro‑arbitration jurisdiction. It confirmed that adjudicative immunity is not a defence available to contracting states under the 1965 ICSID Convention.

Background

In 2015 and 2018, the respective claimants secured substantial ICSID arbitral awards against Zimbabwe and Spain. The former arose under a bilateral investment treaty with Switzerland concerning the expropriation of land; the latter under the Energy Charter Treaty after Spain altered its tariff advantage scheme for solar power...

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