ICSID ARBITRAL AWARD RENDERED IN 2006, CASE NO. ARB/04/15 TELENOR v. HUNGARY
(1) Challenge of the Tribunal’s jurisdiction grounded on the fact that the relevant BIT limited recourse to international arbitration for claims of expropriation only.
(2) Indirect expropriation
(3) The scope of application of Most Favoured Nation clauses.
(4) Allocation of costs
(1) The Respondent’s objection to the jurisdiction of the Tribunal was upheld.
(2) The Claimant failed to produce even prima facie evidence about any State conduct affecting the investment.
(3) With regard to the attempt to expand the protection of the BIT to claims different from claims for expropriation the Tribunal found that the Claimant’s argument could not be upheld as the MFN clause contained in the relevant BIT was not broad enough to allow such reading.
(4) The Tribunal, considering the circumstances of the case and giving ample explanation, ordered the Claimant to pay not only the Defendant’s legal costs but also the costs of the arbitration itself.
Claimant: Telenor Mobile Communications A.S.
Respondent: The Republic of Hungary
Chairman: Professor Sir Roy Goode, CBE, QC
Arbitrator: Mr Nicholas W Allard
Arbitrator: Mr Arthur L Marriott, QC
Seat of Arbitration: Washington D.C. (hearings held in London)
Applicable Investment Treaty: Bilateral Investment Treaty between Hungary and Norway