The annulment proceedings before the International Center for Settlement of Investment Disputes were initiated in connection with a dispute related to the construction of the Southern Railway and Expressway in 2023. in order to cancel the arbitration award made on January 20. The claim was submitted on the basis of the concession agreements concluded with the Republic of Armenia and the agreement "Reciprocal Promotion and Protection of Investments between the Republic of Armenia and the United States of America".
In the arbitral award, the tribunal completely rejected the claim of around 331 million USD against Armenia and ordered the claimants to compensate Armenia for around 2.8 million USD as compensation for legal fees and costs, including all expenses incurred by Armenia during the arbitration proceedings. The applicants requested the Commission to set aside the arbitral award on three grounds under Article 52 of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, arguing that: (1) the tribunal clearly exceeded its jurisdiction, (2) a serious violation of a fundamental procedural rule deviation occurred and (3) the decision did not state the reasons behind it.
The main claim of the applicants was that the tribunal should not have applied the statute of limitations established by the Civil Code of the Republic of Armenia to the claims submitted on the basis of the concession contracts, and as a result of applying them, committed such violations that are grounds for annulment of the judgment. Armenia has presented detailed and convincing arguments regarding the unfoundedness of the applicants' claims and their failure to set aside the arbitral award. In the end, the Cancellation Commission considered Armenia's positions acceptable and completely rejected the applicants' demands.
As a result, the commission obliged the applicants to compensate the legal fees and costs incurred by the Republic of Armenia during the cancellation proceedings, in the total amount of 382,248 USD. By the same decision, Armenia has the right to confiscate the 2.8 million US dollars satisfied by the arbitration award from the guarantee submitted by the applicants in favor of the Republic of Armenia during the cancellation proceedings. The interests of the Republic of Armenia were represented in the framework of the cancellation proceedings by the Alliance Law Partners law firm, represented by partner Edward (Teddy) Baldwin. Professor Frederik Sughzhan and the Office of the Representative for International Legal Affairs. Case information is available to the Centeron the website:
In the arbitral award, the tribunal completely rejected the claim of around 331 million USD against Armenia and ordered the claimants to compensate Armenia for around 2.8 million USD as compensation for legal fees and costs, including all expenses incurred by Armenia during the arbitration proceedings. The applicants requested the Commission to set aside the arbitral award on three grounds under Article 52 of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, arguing that: (1) the tribunal clearly exceeded its jurisdiction, (2) a serious violation of a fundamental procedural rule deviation occurred and (3) the decision did not state the reasons behind it.
The main claim of the applicants was that the tribunal should not have applied the statute of limitations established by the Civil Code of the Republic of Armenia to the claims submitted on the basis of the concession contracts, and as a result of applying them, committed such violations that are grounds for annulment of the judgment. Armenia has presented detailed and convincing arguments regarding the unfoundedness of the applicants' claims and their failure to set aside the arbitral award. In the end, the Cancellation Commission considered Armenia's positions acceptable and completely rejected the applicants' demands.
As a result, the commission obliged the applicants to compensate the legal fees and costs incurred by the Republic of Armenia during the cancellation proceedings, in the total amount of 382,248 USD. By the same decision, Armenia has the right to confiscate the 2.8 million US dollars satisfied by the arbitration award from the guarantee submitted by the applicants in favor of the Republic of Armenia during the cancellation proceedings. The interests of the Republic of Armenia were represented in the framework of the cancellation proceedings by the Alliance Law Partners law firm, represented by partner Edward (Teddy) Baldwin. Professor Frederik Sughzhan and the Office of the Representative for International Legal Affairs. Case information is available to the Centeron the website:
