Republic of Kazakhstan v Istil Group Inc

Republic of Kazakhstan v Istil Group Inc

The arbitral tribunal lacked substantive jurisdiction because ROK was not a party to the contracts or arbitration agreements, and the French court's judgment created an issue estoppel precluding jurisdiction; the final award must be set aside.

Parties
Claimant: The Republic of Kazakhstan; Defendant: Istil Group Inc
Jurisdiction
England and Wales
Judgment Date
03 April 2006
Procedural Posture
Application to Set Aside Arbitral Award / Judgment
Outcome
final award set aside for want of substantive jurisdiction
Legal Topics
Substantive Jurisdiction, Universal Succession, Res Judicata, Sovereign Immunity, Party Status in Arbitration

Case Brief

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Parties

The Republic of Kazakhstan

Claimant

Istil Group Inc

Defendant

Procedural Posture

Application to Set Aside Arbitral Award / Judgment

  1. 1 Whether the arbitral tribunal had substantive jurisdiction over the dispute between Istil and ROK
  2. 2 Whether the partial award was a nullity due to merger and dissolution of claimant companies
  3. 3 Whether ROK was a party to the contracts or arbitration agreements

Ratio Decidendi

The arbitral tribunal lacked substantive jurisdiction because ROK was not a party to the contracts or arbitration agreements, and the French court's judgment created an issue estoppel precluding jurisdiction; the final award must be set aside.

Court Disposition

final award set aside for want of substantive jurisdiction

Orders

  • The final award of the LCIA dated 1 June 2004 is set aside.