ADC Affiliate Limited and ADC & ADMC Management Limited v. Republic of Hungary (ICSID Case No. ARB/03/16)

Procedural record

1. 2 October 2006Arbitration

   2 October 2006Arbitration

   Award of the Tribunal dated 2 October 2006

   International Centre for Settlement of Investment Disputes

   Decision summary

   The Tribunal found that Hungary's legislative and administrative measures expropriated the Claimants' investments and breached the applicable investment treaty. It ordered Hungary to pay compensation and costs with compound interest, and ordered ADC Affiliate Limited to transfer its shares in the Project Company after payment.

   Participants

   ADC Affiliate Limited

   ADC & ADMC Management Limited

   Republic of Hungary

   International Centre for Settlement of Investment Disputes

   Arbitrator

   Charles N. Brower

   Arbitrator

   Albert Jan van den Berg

   Arbitrator

   Neil T. Kaplan CBE QC

   Arbitrator

   Allan Philip

   Tribunal secretary

   Ucheora Onwuamaegbu

   Other

   Witness

   Michael Huang

   Witness

   Tamas Tahy

   Witness

   Gyorgy Onozo

   Witness

   Laszlo Kiss

   Witness

   Gyula Gansperger

   Witness

   Gabor Somogyi-Toth

   Expert

   Manuel A. Abdala

   Expert

   Andres Ricover

   Expert

   Pablo T. Spiller

   Expert

   Alister L. Hunt

   Authorities cited

   29

   • Hungarian Air Traffic Act (Act No. XCVII of 1995) (Act No. XCVII of 1995)
     statute
   • Hungarian Air Traffic Act (Act XCVII of 1995)
     statute
   • Hungarian Act on the Amendment of Various Traffic-Related Laws (Act No. CIX of 2001)
     statute
   • Hungarian Civil Code (Act IV of 1959)
     statute
   • Agreement between Cyprus and Hungary on Mutual Promotion and Protection of Investment (Cyprus-Hungary Bilateral Investment Treaty, 1989)
     statute
   • Vienna Convention on the Law of Treaties, 1969
     statute
   • Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention, 1965)
     statute
   • Chorzow Factory (Claim for Indemnity) (Merits), Germany v Poland (PCIJ Series A, No. 17 (1928))
     case-law
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     case-law
   • S.D. Myers, Inc. v Canada (UNCITRAL (NAFTA) Award (Merits), 13 November 2000)
     case-law
   • Metalclad Corporation v Mexico (ICSID Case No. ARB(AF)/97/1, Award, 30 August 2000)
     case-law
   • CMS Gas Transmission Company v Argentine Republic (ICSID Case No. ARB/01/8, Award, 12 May 2005)
     case-law
   • CMS Gas Transmission Company v. The Republic of Argentina (ICSID Case No. ARB/01/8)
     case-law
   • Petrobart Limited v Kyrgyz Republic (Arbitration No. 126/2003, Award, 29 March 2005)
     case-law
   • Amoco International Finance Corporation v Iran (15 Iran-U.S. C.T.R. 189)
     case-law
   • MTD Equity Sdn Bhd and MTD Chile SA v Chile (ICSID Case No. ARB/01/7, Award, 25 May 2004)
     case-law
   • Case Concerning the Gabcikovo-Nagymaros Project, Hungary v Slovakia (1997 I.C.J. 7, Judgment, 25 September 1997)
     case-law
   • LaGrand Case, Germany v United States (2001 I.C.J. 466, Judgment, 27 June 2001)
     case-law
   • Case Concerning the Arrest Warrant of 11 April 2000, Democratic Republic of the Congo v Belgium (2002 I.C.J. 3, Judgment, 14 February 2002)
     case-law
   • Case Concerning Avena and Other Mexican Nationals, Mexico v United States (2004 I.C.J. 12, Judgment, 31 March 2004)
     case-law
   • Middle East Cement Shipping Co. S.A. v Arab Republic of Egypt (ICSID Case No. ARB/99/6, Final Award, 12 April 2002)
     case-law
   • Middle East Cement Shipping Co. S.A. v. Arab Republic of Egypt (ICSID Case No. ARB/99/6)
     case-law
   • Compania del Desarrollo de Santa Elena S.A. v Republic of Costa Rica (ICSID Case No. ARB/96/1, Award)
     case-law
   • Compania del Desarrollo de Santa Elena S.A. v. Republic of Costa Rica (ICSID Case No. ARB/96/1)
     case-law
   • Tokios Tokeles v. Ukraine (ICSID Case No. ARB/02/18)
     case-law
   • Enron Corporation et al. v. The Argentine Republic (ICSID Case No. ARB/01/3)
     case-law
   • Fedax N.V. v. Venezuela (ICSID Case No. ARB/96/3)
     case-law
   • Generation Ukraine, Inc. v. Ukraine (ICSID Case No. ARB/00/9)
     case-law
   • Oppenheim's International Law (9th edition, 1996)
     academic