DECISION OF THE AD HOC COMMITTEE ON THE APPLICATION FOR ANNULMENT OF THE AWARD RENDERED IN 2006 IN MR. PATRICK MITCHELL V. THE DEMOCRATIC REPUBLIC OF CONGO (ICSID CASE NO. ARB/99/7)

 

Subject Matter:

(1) Annulment under Article 52 of the ICSID Convention

(2) Jurisdiction and definition of investment under a Bilateral Investment Treaty

(3) Jurisdiction and definition of investment under the ICSID Convention

 

Findings:

(1) The ad hoc Committee annulled the award rendered by the arbitral tribunal on the grounds of failure to state reasons and manifest excess of powers for finding that Mr. Mitchell had made an “investment” that was covered under the relevant BIT and the ICSID Convention.

(2) The ad hoc Committee also held that the tribunal had manifestly exceeded its powers by virtue of holding that returns from Mr. Mitchell’s Congolese activities were covered as investments under the BIT.

(3) In particular, the ad hoc Committee faulted the award for its failure to establish the contribution made by Mr. Mitchell’s law firm to the economic development of the host state, which the Committee found was an essential characteristic of an investment under the ICSID Convention.

 

Parties:

Applicant: The Democratic Republic of Congo

Respondent: Mr. Patrick Mitchell

 

Place of Arbitration: Washington, D.C., USA

 

Applicable Law: ICSID Convention and public international law