Tag Archives: arbitration

Case of the Day: In re Application of Laos

The case of the day is In re Application of the Government of the Lao People’s Democratic Republic (D.N.M.I. 2016). The Laotian government was partners with Sanum Investments Ltd. and Lao Holdings N.V. in the Savan Vegas casino, which was located in Laos. As part of the deal, Laos had given tax benefits and a monopoly to the casino, but due to disagreements, Sanum and Lao Holdings brought a claim in arbitration under the BITs between Laos and China (Sanum was a Macau company) and Laos and the Netherlands (Lao Holdings was a Dutch company). The parties settled the claims in 2014, but Sanum and Lao Holdings unsuccessfully sought to reopen the arbitration on the grounds that Laos had breached the settlement agreement. Laos initiated its own arbitration at the SIAC pursuant to the settlement agreement. Laos also began an investigation of criminal bribery and tax evasion on the part of Sanum and Lao Holdings, which it had discontinued as part of the settlement agreement.
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Case of the Day: Katz, Nannis & Solomon v. Levine

The case of the day is Katz, Nannis & Solomon, P.C. v. Levine (Mass. 2016). The case involved a dispute among the shareholders of a small accounting firm formerly known as Levine, Katz, Nannis & Solomon, P.C. Katz, Nannis, and Solomon voted to require Levine to withdraw as a director and stockholder. Levine disputed their action, and the parties arbitrated the matter. Their agreement provided that it was “subject to and governed by the laws of the Commonwealth of Massachusetts pertaining to agreements executed in and to be performed in the Commonwealth of Massachusetts.” It also contained an agreement to arbitrate that read as follows:

In the event of any dispute concerning any aspect of this Agreement, the parties agree to submit the matter to binding arbitration before a single arbitrator appointed by the American Arbitration Association.…The decision of the arbitrator shall be final; provided, however, solely in the event of a material, gross and flagrant error by the arbitrator, such decision shall be subject to review in court.… [T]he party against which final, adverse judgment is entered [shall be] responsible for (in addition to its own) the other party’s(ies’) costs and expenses, including reasonable attorneys’ fees.

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Case of the Day: Albaniabeg Ambient v. Enel

The case of the day is Albaniabeg Ambient Sh.p.k. v. Enel S.p.A. (S.D.N.Y. 2016). BEG S.p.A., an Italian company, contracted with the government of Albania to build and operate a hydroelectric plant. BEG also had a contract with Enel S.p.A., another Italian firm, to study the feasibility of the project. Later, BEG had a similar contract with Enelpower S.p.A., an Enel subsidiary. The Enelpower contract had an agreement to arbitrate.

A dispute arose. BEG commenced an arbitration against Enelpower for breach of contract. The tribunal, seated in Rome, found that Enelpower was not liable to BEG. The Italian courts refused to vacate the award despite a claim that one of the arbitrators had a conflict of interest.

Later, Albaniabeg, a subsidiary of BEG, brought an action against Enel and Enelpower in the Albanian court. The claims were tort claims arising out of the hydroelectric project. The Albanian court entered a judgment for more than € 25 million against Enel and Enelpower, which was affirmed on appeal. The European Court of Human Rights rejected Enel and Enelpower’s challenge to the judgment.

Albaniabeg brought an action in the New York Supreme Court for recognition of the Albanian judgment. Continue reading Case of the Day: Albaniabeg Ambient v. Enel