COURT DECISIONS ON ARBITRATION DISTRICT COURT OF THE HAGUE, THE NETHERLANDS DECISION ON 1 AUGUST 2007 CASE NO. LJN: BB1424, 255948 / HA ZA 05-3983
Includes observations by Diederik de Groot
Subject Matter: Conformity with public policy of an arbitral award made in The Netherlands and involving a dispute between Nederlands Elektriciteit Administratiekantoor and the State regarding the amount of the payable non-market-compatible costs of the unprofitable Demkolec plant.
Findings: Challenge rejected. The ground for annulment set out in Article 1065(1)(e) of the Dutch Code of Civil Procedure (violation of public policy) must be applied restrictively. The result of the arbitration award is consistent with and stays within the bounds of the decision concerning State aid of the European Commission of 25 July 2001, so that Articles 87 and 88 of the EC Treaty have not been violated.
Claimant: STAAT DER NEDERLANDEN
Respondent: B.V. NEDERLANDS ELEKTRICITEIT ADMINISTRATIEKANTOOR
Place of court proceedings: The Hague, The Netherlands