U.S. Discovery in Aid of Non-U.S. Arbitration Proceedings: In re Matter of the Application of Oxus Gold PLC - WAMR 2006 Vol. 17, No. 12

Author(s):

Jane Wessel

Peter J. Eyre

Page Count:

3 pages

Media Description:

PDF from World Arbitration and Mediation Report (WAMR) 2006 Vol. 17, No. 12

Published:

December, 2006

Jurisdictions:

International,

United States

Practice Areas:

International and Transnational Law,

Discovery,

Arbitral Decisions

Author Detail:

Jane Wessel is Counsel at Crowell & Moring in London (www.crowell.com).

Peter Eyre is an associate in the Washington, D.C. office of Cromwell & Moring LLP in the International and Government Litigation and Arbitration Group.

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Originally from World Arbitration and Mediation Review

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Article

U.S. Discovery in Aid of Non-U.S. Arbitration Proceedings:

In re Matter of the Application of Oxus Gold PLC

by Jane Wessel

& Peter J. Eyre

In In re Matter of the Application of Oxus Gold plc, Misc. No. 06-82, 2006 WL 2927615,

2006 U.S. Dist. LEXIS 74118 (D.N.J. Oct. 10, 2006) (slip copy), a federal district court in New

Jersey held that an arbitration tribunal convened pursuant to the dispute resolution provisions of

a bilateral investment treaty under UNCITRAL Rules is a “tribunal” as that term is used in 28

U.S.C. § 1782, and that broad US discovery is therefore available in aid of such proceedings.

Facts

Oxus Gold, an international mining group based in the U.K., created a joint venture

(known as TGMC) with two other entities to develop the Jerooy gold deposit in the Kyrgyz

Republic. After initially granting a license to TGMC to develop the gold deposit, the Kyrgyz

Republic subsequently terminated that authorization. SIG Overseas Ltd. then contacted the

Kyrgyz Republic on behalf of another entity expressing interest in obtaining a license to develop

the mine—and following negotiations—SIG’s client entered into a joint venture with a Kyrgyz

state-owned joint stock company to develop the Jerooy mine.

TGMC filed several court proceedings in Kyrgyzstan stemming from termination of the

license and the Republic’s decision to enter into a relationship with a new joint venture partner.

Additionally, Oxus Gold alleged that the Kyrgyz Republic had violated its bilateral investment

treaty with the United Kingdom, and Oxus Gold therefore initiated investment arbitration

proceedings against the Kyrgyz Republic under the UNCITRAL arbitration rules.

Pursuant to 28 U.S.C. § 1782, Oxus Gold filed an application in a New Jersey federal

district court to obtain discovery from SIG and its managing director, both of whom Oxus Gold

asserted had information relevant to the international arbitration and the court proceedings.