Originally from ICDR Awards and Commentaries - Volume 2

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COMMENTARY

ICDR CASE NO. 309-07

I. Introduction

This award, which followed six years of proceedings, is interesting principally for its procedural aspects, as the arbitral tribunal imposed an array of sanctions against an uncooperative and obstructive CLAIMANT.

The underlying claims relate to a joint-venture formed by CLAIMANT and RESPONDENT for the manufacture of glass containers. CLAIMANT and RESPONDENT each held a 50% interest in the JV, but CLAIMANT controlled the JV’s day-to-day operations. After initial profitability, the JV’s business deteriorated under the management of C PRINCIPAL 1, CLAIMANT’s appointed General Manager. 

RESPONDENT alleged, and the Tribunal ultimately agreed, that C PRINCIPAL 1 and CLAIMANT breached their contractual and fiduciary duties to RESPONDENT for the benefit of COUNTRY 2 FAMILY, the family controlling CLAIMANT of which C PRINCIPAL 1 was a member.