The case of the day is CEEG (Shanghai) Solar Science & Technology Co. v. LUMOS LLC (10th Cir. 2016). CEEG was a Chinese solar panel manufacturer. LUMOS was a solar energy company in Colorado. The parties had a co-branding agreement under which LUMOS agreed to purchase at least a minimum number of solar panels from CEEG over three years and CEEG warranted that the goods would conform to the contract specification. The agreement provided: “all documentation, notices, judicial proceedings, and dispute resolution and arbitration entered into, given, instituted pursuant to, or relating to, this Agreement be drawn up in the English language.” And it provided for arbitration before CIETAC. On the other hand, it provided that each order for goods would be subject to subsequent purchase contracts. The parties did enter into a subsequent contract, which again provided for CIETAC arbitration but did not provide for the use of English. The CIETAC Rules provide that if
the parties have agreed on the language of arbitration, their agreement shall prevail. In the absence of such agreement, the language of arbitration … shall be Chinese or any other language designated by CIETAC having regard to the circumstances of the case.
Continue reading Case of the Day: CEEG (Shanghai) Solar v. LUMOS LLC
Reuters is reporting that Ecuador has paid Chevron the $96 million awarded in a treaty arbitration ($112 million with interest). I’ve written several posts about this award and its aftermath. You may want to review my post on the DC Circuit’s decision affirming confirmation of the award and my post on the Hoge Raad’s decision rejecting Ecuador’s challenge to the award.
Continue reading Lago Agrio: Ecuador Pays Arbitral Award
The case of the day is In re Certain Controversies Between Getma International and the Republic of Guinea (D.D.C. 2016). Getma had a contract to develop Guinea’s main port in the capital city, Conakry. The agreement called for arbitration of disputes under the CCJA arbitration rules. When a dispute arose, Getma demanded arbitration. The tribunal ultimately awarded Getma significant damages.
During the proceedings, the CCJA had ordered the parties to pay certain arbitration costs in advance. The tribunal asked the CCJA, which was administering the arbitration, to increase the arbitrators’ fees. The CCJA seemed to encourage or at least countenance this request, and the parties indicated they had no objection. But later, the CCJA rejected the tribunal’s effort to increase the fees, citing its prior precedents. Nevertheless, the tribunal’s award included a demand for € 450,000 in arbitrators’ fees, contrary to the CCJA’s decision. “And somehow, the tribunal eventually collected half of the increased arbitrators’ fees from Getma,” the prevailing party.
Guinea sought to annul the award in proceedings before the CCJA, and the CCJA granted its petition on the ground sthat the tribunal had violated the CCJA rules by increasing its fees, which only the CCJA had the authority to do. Getma sought confirmation of the now-annulled award in Washington.
Continue reading Case of the Day: Getma v. Guinea