Arbitral Digest

Matter

LG&E Energy Corp., LG&E Capital Corp. and LG&E International Inc. v. Argentine Republic (ICSID Case No. ARB/02/1)

Case no.
ARB/02/1
Applicable rules
ICSID Arbitration Rules
  1. 30 April 2004Arbitration

    30 April 2004Arbitration

    Decision on Objections to Jurisdiction

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal held that the dispute was within the jurisdiction of the Centre and the competence of the Tribunal, dismissed the Respondent's objections to admissibility and jurisdiction, ordered continuation of the proceeding, and reserved questions concerning costs and expenses.

    Supporting details

    6 authorities · 8 participants
    LG&E Energy Corp.
    LG&E Capital Corp.
    LG&E International, Inc.
    Argentine Republic
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Francisco Rezek
    Tribunal secretary
    Claudia Frutos-Peterson

    Authorities cited

    6
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States (1965 ICSID Convention)
      treaty
    • Treaty between the United States of America and the Argentine Republic concerning the Reciprocal Encouragement and Protection of Investment (United States-Argentina Bilateral Investment Treaty, signed November 14, 1991, in force October 20, 1994)
      treaty
    • CMS Gas Transmission Company v. Argentine Republic (ICSID Case No. ARB/01/8, Decision on Jurisdiction)
      case-law
    • Azurix Corp. v. Argentine Republic (ICSID Case No. ARB/01/12, Decision on Jurisdiction)
      case-law
    • Lanco International Inc. v. Argentine Republic (ICSID Case No. ARB/97/6, Preliminary Decision)
      case-law
    • Barcelona Traction, Light & Power Co. Ltd. (Belgium v. Spain) (Judgment, February 5, 1970, ICJ Reports 1970, 3)
      case-law

    2 years, 5 months and 3 days later · 886 days

  2. 3 October 2006Arbitration

    3 October 2006Arbitration

    Decision on Liability

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal partially granted LG&E's claims. It dismissed the expropriation claim; found breaches of fair and equitable treatment, no less favorable treatment under international law, the umbrella clause, and discriminatory measures; found no breach of the prohibition on arbitrary measures; held that Argentina was exempt from responsibility during the state of necessity from December 1, 2001 to April 26, 2003; and retained jurisdiction to determine damages and the relevant periods in a later phase. Costs were reserved.

    Supporting details

    6 authorities · 8 participants
    LG&E Energy Corp.
    LG&E Capital Corp.
    LG&E International Inc.
    Argentine Republic
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Francisco Rezek
    Tribunal secretary
    Claudia Frutos-Peterson

    Authorities cited

    6
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States (1965 ICSID Convention)
      treaty
    • Treaty between the United States of America and the Argentine Republic concerning the Reciprocal Encouragement and Protection of Investment (United States-Argentina Bilateral Investment Treaty, signed November 14, 1991, in force October 20, 1994)
      treaty
    • Argentine Public Emergency and Foreign Exchange System Reform Law No. 25,561 (Law No. 25,561 of January 6, 2002)
      statute
    • Argentine Gas Law No. 24,076 (Law No. 24,076)
      statute
    • International Law Commission Draft Articles on Responsibility of States for Internationally Wrongful Acts (United Nations General Assembly Resolution 56/83, December 12, 2001)
      international instrument
    • CMS Gas Transmission Company v. Argentine Republic (ICSID Case No. ARB/01/8, Decision on Jurisdiction)
      case-law

    9 months and 22 days later · 295 days

  3. 25 July 2007Arbitration

    25 July 2007Arbitration

    Award

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal awarded LG&E US$57,400,000.00 in compensation for damages caused by Argentina's continuing breach of its Treaty obligations between August 18, 2000 and February 28, 2005, including interest up to the date of the Award. Argentina was ordered to pay within 30 days, with compound interest at the six-month U.S. Treasury bill rate until payment in full. Each party was ordered to bear its own costs, expenses, and attorney's fees.

    Supporting details

    3 authorities · 8 participants
    LG&E Energy Corp.
    LG&E Capital Corp.
    LG&E International, Inc.
    Argentine Republic
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Francisco Rezek
    Tribunal secretary
    Claudia Frutos-Peterson

    Authorities cited

    3
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States (1965 ICSID Convention)
      treaty
    • Treaty between the United States of America and the Argentine Republic concerning the Reciprocal Encouragement and Protection of Investment (United States-Argentina Bilateral Investment Treaty, signed November 14, 1991, in force October 20, 1994)
      treaty
    • International Law Commission Draft Articles on Responsibility of States for Internationally Wrongful Acts (United Nations General Assembly Resolution 56/83, December 12, 2001)
      international instrument

    7 years, 6 months and 26 days later · 2767 days

  4. 20 February 2015Arbitration

    20 February 2015Arbitration

    Order of the Secretary-General Taking Note of the Discontinuance of the Proceeding

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Secretary-General took note of the discontinuance of the annulment proceeding under Rule 44 of the ICSID Arbitration Rules after the Argentine Republic stated that it had no objection to discontinuance.

    Supporting details

    1 authority · 10 participants
    E.ON Climate & Renewables North America, LLC
    Representative
    Charlotte Toerber (For: E.ON Climate & Renewables North America, LLC · E.ON U.S. LLC, formerly LG&E Energy LLC · E.ON U.S. Capital Corp., formerly LG&E Capital Corp. · LG&E International, Inc.)
    E.ON U.S. LLC, formerly LG&E Energy LLC
    Representative
    Charlotte Toerber (For: E.ON Climate & Renewables North America, LLC · E.ON U.S. LLC, formerly LG&E Energy LLC · E.ON U.S. Capital Corp., formerly LG&E Capital Corp. · LG&E International, Inc.)
    E.ON U.S. Capital Corp., formerly LG&E Capital Corp.
    Representative
    Charlotte Toerber (For: E.ON Climate & Renewables North America, LLC · E.ON U.S. LLC, formerly LG&E Energy LLC · E.ON U.S. Capital Corp., formerly LG&E Capital Corp. · LG&E International, Inc.)
    LG&E International, Inc.
    Representative
    Charlotte Toerber (For: E.ON Climate & Renewables North America, LLC · E.ON U.S. LLC, formerly LG&E Energy LLC · E.ON U.S. Capital Corp., formerly LG&E Capital Corp. · LG&E International, Inc.)
    Argentine Republic
    Representative
    Miguel Lopez Forastier (For: Argentine Republic)
    Representative
    Horacio J. Ruiz Moreno (For: Argentine Republic)
    Representative
    Angelina Maria Esther Abbona (For: Argentine Republic)
    Meg Kinnear
    International Centre for Settlement of Investment Disputes

    Authorities cited

    1
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States (1965 ICSID Convention)
      treaty

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LG&E Energy Corp., LG&E Capital Corp. and LG&E International Inc. v. Argentine Republic (ICSID Case No. ARB/02/1) · Matter