Infrastructure Services Luxembourg SARL & Anor v The Kingdom of Spain [2024] EWCA Civ 1257 (22 October 2024)

Infrastructure Services Luxembourg SARL & Anor v The Kingdom of Spain [2024] EWCA Civ 1257 (22 October 2024)

Registration of ICSID awards under the Arbitration (International Investment Disputes) Act 1966 is an adjudicative act that engages the general immunity conferred by section 1(1) of the State Immunity Act 1978. However, where a foreign state has agreed in writing to arbitrate (typically via a BIT or multilateral treaty), the exception in section 9 applies, and the state is not immune from proceedings relating to the arbitration. The English court's role is limited to verifying authenticity and compliance with statutory requirements; it cannot re-examine the merits or jurisdiction of the ICSID award, except in exceptional circumstances not overlapping with Convention grounds. Signing the...

Citation
[2024] EWCA Civ 1257
Parties
Claimant/respondent: Infrastructure Services Luxembourg S.À. R. L.; Claimant/respondent: Energia Termosolar B. V.; Defendant/appellant: The Kingdom of Spain; Claimant/respondent: Border Timbers Limited; Claimant/respondent: Hangani Development Co. (Private) Limited; Defendant/appellant: Republic of Zimbabwe
Jurisdiction
England and Wales
Judgment Date
22 October 2024
Procedural Posture
Appeal From High Court (commercial Court) / Court of Appeal Judgment
Outcome
Appeals dismissed; registration of ICSID awards upheld.
Legal Topics
ICSID Convention Enforcement, State Immunity Act 1978, Arbitration (international Investment Disputes) Act 1966, Recognition and Enforcement of Arbitral Awards, Bilateral Investment Treaties
International Arbitration State Immunity Investment Law ICSID Convention Enforcement State Immunity Act 1978 Arbitration (international Investment Disputes) Act 1966 Recognition and Enforcement of Arbitral Awards Bilateral Investment Treaties

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Parties

Infrastructure Services Luxembourg S.À. R. L.

Claimant/respondent

Energia Termosolar B. V.

Claimant/respondent

The Kingdom of Spain

Defendant/appellant

Border Timbers Limited

Claimant/respondent

Hangani Development Co. (Private) Limited

Claimant/respondent

Republic of Zimbabwe

Defendant/appellant

Procedural Posture

Appeal From High Court (commercial Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Does state immunity under SIA 1978 apply to registration of ICSID awards under the 1966 Act?
  2. 2 Does signing the ICSID Convention constitute submission to UK jurisdiction for enforcement purposes?
  3. 3 Can a foreign state challenge the validity of the arbitration agreement or award at the registration stage?

Ratio Decidendi

Registration of ICSID awards under the Arbitration (International Investment Disputes) Act 1966 is an adjudicative act that engages the general immunity conferred by section 1(1) of the State Immunity Act 1978. However, where a foreign state has agreed in writing to arbitrate (typically via a BIT or multilateral treaty), the exception in section 9 applies, and the state is not immune from proceedings relating to the arbitration. The English court's role is limited to verifying authenticity and compliance with statutory requirements; it cannot re-examine the merits or jurisdiction of the ICSID award, except in exceptional circumstances not overlapping with Convention grounds. Signing the...

Court Disposition

Appeals dismissed; registration of ICSID awards upheld.

Orders

  • Spain's application to set aside registration of ICSID award dismissed.
  • Zimbabwe's application to set aside registration of ICSID award dismissed.