Our client is proceeding with the first known investment treaty claim against Denmark at ICSID, after he was unable to reach a settlement with the state over the damage allegedly caused by protestors at a construction site in Copenhagen.
Donatas Aleksandravicius, the owner of construction company Ds Byggeri, is seeking compensation for damage caused by the riot and related financial harm under the Lithuania-Denmark bilateral investment treaty. The claim was registered by ICSID yesterday.
Aleksandravicius and Ds Byggeri filed an initial notice of arbitration in February but sought to then negotiate with the Danish government, a process that was postponed due to the covid-19 pandemic and resulting lockdown. However, in July the Danish Ministry of Justice wrote a letter to Motieka & Audzevicius partner Rimantas Daujotas – saying that the government rejected Aleksandravicius’ claim and his settlement proposal.
In that letter the ministry cited the European Court of Justice’s ruling in Achmea that intra-EU BITs are incompatible with EU law. It also said that, in any case, Danish authorities had not acted in a way that gives rise to liability under the BIT.
Denmark’s refusal to negotiate with Aleksandravicius prompted him to file the more recent request for arbitration that has now been registered by ICSID.