Insights & news

Case C-109/20: an ad hoc arbitration agreement cannot be used to circumvent an invalid arbitration clause in an intra-EU BIT

  • 04/11/2021
  • Articles

On 26 October 2021, the Court of Justice of the European Union (“CJEU”) decided, in its judgment in Case C-109/20 Republic of Poland v PL Holdings, that where an investor-State arbitration clause in an intra-EU bilateral investment treaty (“BIT”) is invalid under European Union (“EU”) law, investors cannot rely on a tacit ad hoc arbitration agreement with identical content to the arbitration clause. Importantly, the CJEU clarified that EU Member States must contest the jurisdiction of an arbitral tribunal in such a situation and national courts of the Member States must uphold an action to set aside an arbitration award made on the basis of an arbitration agreement that is contrary to EU law.

Click on the link below to read our client alert on this matter.


Key contacts

Related practice areas

Related insights

Sign up for updates
    • 18/05/2022
    • News

    Investor-State Claims against Mexico: Recent Developments in the Energy and Mining Sectors

    As an update to our August 2021 client alert, this client alert provides an overview of the most recent regulatory developments in the energy and mining sectors in Mexico and their potential effect on foreign investments.

    Read more
    • 22/04/2022
    • News

    The 2022 ICSID Arbitration Rules – A Brief Overview

    On 21 March 2022, the Member States of the International Centre for Settlement of Investment Disputes (“ICSID”) approved amendments to the ICSID Regulations and Rules, which will enter into force on 1 July 2022. These amendments include changes to the ICSID Arbitration Rules (the “Rules”), which govern the procedure to be followed in arbitrations under the 1966 Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the “ICSID Convention”). ICSID has amended its regulations and rules only four times (including the 2022 amendments) since its establishment in 1966, with the previous amendment having been introduced in 2006. The 2022 amendments follow a detailed review of the ICSID Regulations and Rules, which began in October 2016. Please click on the link below to read our client alert on this matter.

    Read more
    • 25/03/2022
    • News

    Protection of Business Assets in Russia and Ukraine under International Investment Law

    Russia’s military action in Ukraine together with its announcement of retaliatory measures in response to international sanctions are likely to have significant implications for foreign investors with investments in Russia and/or Ukraine. Following the critical response of the international community to Russia’s invasion and the widespread imposition of sanctions, Russia has already drawn up a list of unfriendly countries which could be targeted. As more multinationals suspend their operations in Russia, Russia has also announced various measures intended to stem the outflow of foreign capital including the possibility that the assets of any such foreign investors seeking to exit operations in Russia could be nationalised without compensation. Russia still remains bound by the international treaties which it has signed and ratified. This Client Alert considers the protections and remedies which might be available to foreign investors affected by Russian measures under International Investment Law. After considering the measures which could potentially give rise to investment treaty claims (Section A), this Client Alert provides an overview of the treaty protections available to foreign investors as well as a summary of how those protections can be accessed (Section B). It concludes with some immediate practical guidance for foreign investors who are affected by Russia’s measures (Section C).

    Read more

Subscribe to our updates

Please select the practice areas you are interested in: *