What's New in European Arbitration? - The View from Europe - Dispute Resolution Journal - Vol. 70, No. 2

Author(s):

Stephan Wilske

Isabelle Michou

Todd J. Fox

Andy Mather

Page Count:

10 pages

Media Description:

1 PDF Download

Published:

July, 2015

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Description:

Originally from Dispute Resolution Journal

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Recent Decisions by National Courts

France. In this issue we discuss two recent cases from the Paris Court

of Appel, one dealing with the enforcement of an arbitral award and

the other dealing with the retraction of an arbitral award as a remedy

against fraud under French law.

Venezuela v. Gold Reserve

In an order dated January 29, 2015 in République Bolivarienne du

Venezuela c/ Société Gold Reserve Inc., Cour d’appel de Paris, Pôle

1 – Chambre 1, RG N° 14/21103, the Paris Court of Appeal

considered and upheld the enforcement of an award against

Venezuela issued under the ICSID Additional Facility Rules despite

Venezuela’s request for a stay of enforcement pending its application

to have the award set aside.

Background

In connection with a dispute over mining rights and concessions in

Venezuela, Gold Reserve Inc. (“Gold Reserve”), a Canadian

company, filed a Request for Arbitration against Venezuela under the

International Centre for Settlement of Investment Disputes (ICSID) in

October 2009. Since Canada had not yet ratified the Washington

Convention of March 18, 1965 (i.e., the ICSID Convention) at the

time the claim was filed, arbitration proceedings were commenced

under the ICSID Additional Facility Rules. Under these rules an

award is not subject to ICSID’s annulment and enforcement

mechanisms and may be challenged before domestic courts in the

same way as non-ICSID awards.

In an award issued on September 22, 2014, the arbitral tribunal

found that Venezuela had breached Article II (2°) of the Agreement

between the Government of Canada and the Government of the

Republic of Venezuela for the Promotion and Protection of

Investments (“BIT”) by failing to accord fair and equitable treatment

to Gold Reserve’s investment. Venezuela was ordered to pay

compensation of just over USD 713 million (plus interest). It was also

ordered to pay USD 5 million in partial reimbursement of Gold
Reserve’s legal costs.