FINAL AWARD RENDERED IN 2003 IN SCC CASE 118/2001

 

Subject Matter: Whether the Republic of Latvia was in breach of its obligations under the Energy Charter Treaty (ECT) towards the claimant due to the fact that the republic’s state-owned company allegedly did not pay the claimant’s subsidiary in accordance with the contract between company and subsidiary.

 

Finding: The tribunal held that the state owned company was in breach of the contract and that the republic must be found responsible for that breach. Since other local competitors of the subsidiary were paid by the stateowned company in accordance with their contracts (after they had sued in courts), the tribunal found that such breach of contract constituted discriminatory measures and, consequently, a breach of the obligations under the ECT.

 

Parties:

Claimant: Nykomb Synergetics Technology Holding AB, Stockholm

Respondent: The Republic of Latvia, Riga

Parties’ counsel:

Claimant: Mr. Jonas Wetterfors and Mr. Per Winnberg of Hellström & Partners Advokatbyrå KB, Stockholm

Respondent: Mr. Fred Wennerholm and Mr. Petter Törnquist of Setterwalls Advokatbyrå, Stockholm, and Mr. Gundars Cers of Grunte & Cers law firm, Riga.

 

Arbitrators:

Chairman: Norway

Arbitrator A: Germany

Arbitrator B: Sweden

 

Place of arbitration: Stockholm, Sweden