Gemplus, S.A., SLP, S.A. and Gemplus Industrial, S.A. de C.V. v. United Mexican States (ICSID Case No. ARB(AF)/04/3)

Procedural record

1. 16 June 2010Arbitration

   16 June 2010Arbitration

   Award in Gemplus, S.A., SLP, S.A. and Gemplus Industrial, S.A. de C.V. v. United Mexican States dated 16 June 2010

   International Centre for Settlement of Investment Disputes

   Decision summary

   The Tribunal rejected the jurisdictional challenge and assumed jurisdiction over the merits of claims brought under the France-Mexico and Argentina-Mexico bilateral investment treaties. It found breaches of fair and equitable treatment and unlawful expropriation, awarded compensation and compound interest to Gemplus S.A. and Talsud S.A., awarded arbitration costs to the claimants, ordered Mexico to bear the remaining arbitration costs, and dismissed the remaining claims.

   Participants

   Gemplus Industrial, S.A. de C.V.

   Representative

   Baker & Mackenzie (For: Gemplus Industrial, S.A. de C.V. · Gemplus, S.A. · SLP, S.A.)

   Representative

   Philippe Sands (For: Gemplus Industrial, S.A. de C.V. · Gemplus, S.A. · SLP, S.A.)

   Gemplus, S.A.

   Representative

   Baker & Mackenzie (For: Gemplus Industrial, S.A. de C.V. · Gemplus, S.A. · SLP, S.A.)

   Representative

   Philippe Sands (For: Gemplus Industrial, S.A. de C.V. · Gemplus, S.A. · SLP, S.A.)

   SLP, S.A.

   Representative

   Baker & Mackenzie (For: Gemplus Industrial, S.A. de C.V. · Gemplus, S.A. · SLP, S.A.)

   Representative

   Philippe Sands (For: Gemplus Industrial, S.A. de C.V. · Gemplus, S.A. · SLP, S.A.)

   United Mexican States

   Representative

   Pillsbury Winthrop Shaw Pittman (For: United Mexican States)

   Representative

   Secretaría de Economía (For: United Mexican States)

   Representative

   Thomas & Partners (For: United Mexican States)

   International Centre for Settlement of Investment Disputes

   Arbitrator

   V. V. Veeder

   Arbitrator

   L. Yves Fortier

   Arbitrator

   Eduardo Magallón Gómez

   Authorities cited

   18

   • Agreement between France and Mexico on the Reciprocal Promotion and Protection of Investments (1998 France-Mexico BIT)
     statute
   • Agreement between Argentina and Mexico on the Reciprocal Promotion and Protection of Investments (1996 Argentina-Mexico BIT)
     statute
   • International Law Commission Articles on State Responsibility (International Law Commission Articles on Responsibility of States for Internationally Wrongful Acts)
     academic
   • UNIDROIT Principles of International Commercial Contracts (UNIDROIT Principles, Article 7.4.3)
     academic
   • Case Concerning the Factory at Chorzow (1927 PCIJ, Series A, No. 9; 1928 PCIJ, Series A, No. 17)
     case-law
   • Waste Management, Inc. v. United Mexican States (ICSID Case No. ARB(AF)/00/3, Award of 30 April 2004)
     case-law
   • Metalclad Corporation v. United States of Mexico (ICSID Case No. ARB(AF)/97/1, Award of 30 August 2000)
     case-law
   • Tecnicas Medioambientales Tecmed S.A. v. United Mexican States (ICSID Case No. ARB(AF)/00/2, Award of 29 May 2003)
     case-law
   • Compania del Desarrollo de Santa Elena, S.A. v. The Republic of Costa Rica (ICSID Case No. ARB/96/1, Award of 17 February 2000)
     case-law
   • Sapphire International Petroleums, Ltd. v. National Iranian Oil Company (35 ILR 136 (1963))
     case-law
   • Chaplin v Hicks ([1911] 2 KB 786)
     case-law
   • ADC Affiliate Limited and ADC & ADMC Management Limited v. Republic of Hungary (ICSID Case No. ARB/03/16, Award of 2 October 2006)
     case-law
   • Azinian v. United Mexican States (ICSID Case No. ARB(AF)/97/2, Award of 1 November 1999)
     case-law
   • International Thunderbird Gaming Corporation v. United States of Mexico (UNCITRAL (NAFTA), Award of 26 January 2006)
     case-law
   • Damages in International Investment Law (Ripinsky & Williams, BIICL, 2008)
     academic
   • Valuation for Arbitration: Compensation Standards, Valuation Methods and Expert Evidence (Kantor, Kluwer, 2008)
     academic
   • Burden of Proof and Related Issues (Kazazi, Kluwer, 1996)
     academic
   • Damages (McGregor, 18th edition, 2009)
     academic