Our firm has acted as co-counsel together with Crowell & Moring LLP, based in Washington, in an investor-state arbitration. We represented the Italian winemaker Luigi Bosca in a dispute against the Republic of Lithuania conducted under the UNCITRAL Arbitration rules.
On 17 May 2013, the arbitral tribunal, composed of the Hon. Marc Lalonde (Presiding arbitrator) along with Mr. Daniel Price and Prof. Brigitte Stern, issued an award in favour of Luigi Bosca in which it was declared that the Republic of Lithuania had breached its obligation to grant just and fair treatment to the claimant.
Mr. Luigi Bosca announced that he was pleased with the successful result in the international arbitration award, which had confirmed the liability of the Republic of Lithuania for its illegal treatment of him under international law and the International Investment Agreement between Italy and Lithuania. He, in particular, wished to express his gratitude to the three-member Tribunal for their decision.
Luigi Bosca’s claims were made in relation to the privatization process and illegal annulment of his successful bid for A.B. Alita. The illegality of Lithuania’s treatment of Luigi Bosca under Lithuania law had earlier been determined by the Lithuanian Supreme Court, the Lithuanian Constitutional Court, and the Lithuanian Parliament through a special Investigation Commission. As noted in the Tribunal’s award, “The Claimant has been successful on the issues of admissibility, jurisdiction and liability and on the principle of damages.” The Tribunal specifically confirmed Lithuania’s breach of its international obligations to provide Luigi Bosca with fair and equitable treatment stating that “…the actions of the Respondent vis-à-vis the Claimant during September and October 2003 constituted a breach of Article 2(2) of the Agreement concerning just and fair treatment and that the Respondent is liable for the damages resulting from such behaviour. The legitimate and reasonable expectations of the Claimant resulting from his selection as the winning bidder were illegally frustrated by the Respondent’s authorities.”
“We are pleased we were able to help vindicate Luigi Bosca in such a meritorious case”, added Luigi Bosca’s international arbitration Counsel, Stuart H. Newberger, a senior partner of the international law firm Crowell & Moring LLP.
“This investor-state arbitration case marks a landmark decision for the Republic of Lithuania as the first case in the legal history of Lithuania where the investor-state tribunal had declared the Republic of Lithuania liable for its conduct under the bilateral investment agreement. We are extremely pleased we were a part of the legal team representing Mr. Bosca in this historical case”, said Ramūnas Audzevičius, co-counsel for the claimant.