Micula & Ors v Romania & Anor

Micula & Ors v Romania & Anor

Registration of the ICSID award is not set aside, as it does not breach the Commission's Injunction Decision and is mandated by the Arbitration (International Investment Disputes) Act 1966. Enforcement is stayed pending resolution of annulment proceedings in the EU courts, as enforcement would conflict with the Commission's Final Decision prohibiting payment under the award, and the principle of sincere cooperation under EU law requires national courts to refrain from conflicting decisions. Security for the award may be ordered as a condition of the stay, subject to further submissions on legal power and compliance with EU law.

Parties
Claimant/respondent: Viorel Micula; Claimant/respondent: Ioan Micula; Claimant/respondent: S. C. European Food S. A.; Claimant/respondent: S. C. Starmill S. R. L.; Claimant/respondent: S. C. Multipack S. R. L.; Defendant/applicant: Romania; Intervener: European Commission
Jurisdiction
England and Wales
Judgment Date
20 January 2017
Procedural Posture
Application to Set Aside or Stay Registration of ICSID Arbitration Award / Post Registration, Determination of Enforcement and Stay Pending EU Proceedings
Outcome
Application to set aside registration refused; enforcement stayed pending EU court decision; security may be ordered subject to further submissions.
Legal Topics
ICSID Award Enforcement, State Aid, Res Judicata, Sincere Cooperation, Security for Stay
International Arbitration EU Law Investment Law ICSID Award Enforcement State Aid Res Judicata Sincere Cooperation Security for Stay

Case Brief

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Parties

Viorel Micula

Claimant/respondent

Ioan Micula

Claimant/respondent

S. C. European Food S. A.

Claimant/respondent

S. C. Starmill S. R. L.

Claimant/respondent

S. C. Multipack S. R. L.

Claimant/respondent

Romania

Defendant/applicant

European Commission

Intervener

Procedural Posture

Application to Set Aside or Stay Registration of ICSID Arbitration Award / Post Registration, Determination of Enforcement and Stay Pending EU Proceedings

Legal Issues

  1. 1 Whether registration of ICSID award should be set aside or stayed due to EU Commission State aid decision
  2. 2 Whether enforcement of award conflicts with EU law obligations
  3. 3 Whether UK obligations under ICSID Convention and Arbitration Act 1966 override EU law

Ratio Decidendi

Registration of the ICSID award is not set aside, as it does not breach the Commission's Injunction Decision and is mandated by the Arbitration (International Investment Disputes) Act 1966. Enforcement is stayed pending resolution of annulment proceedings in the EU courts, as enforcement would conflict with the Commission's Final Decision prohibiting payment under the award, and the principle of sincere cooperation under EU law requires national courts to refrain from conflicting decisions. Security for the award may be ordered as a condition of the stay, subject to further submissions on legal power and compliance with EU law.

Court Disposition

Application to set aside registration refused; enforcement stayed pending EU court decision; security may be ordered subject to further submissions.

Orders

  • Registration Order of 17 October 2014 remains in force.
  • Enforcement of the Award is stayed pending outcome of annulment proceedings in the EU courts.