PL Holdings S.á.r.l. v. Republic of Poland (SCC Case No. V 2014/163) - Partial Award - 28 June 2017
The Claimant’s contention in this proceeding that Poland has expropriated Claimant’s qualifying investment in Poland and done so without compensation, in violation of the Bilateral Investment Treaty between Poland and the Government of the Kingdom of Belgium and the Government of the Grand Duchy of Luxembourg. The Tribunal has determined that Respondent expropriated Claimant’s shares of stock by compelling Claimant to sell those shares at a highly disadvantageous moment, and therefore, ordered Respondent to compensate the Claimant for the resulting loss.
Main Issues :
Expropriation - Violation of BIT’s Provisions - The Principle of Proportionality - Fair and Equitable Treatment
Professor George A. Bermann (President), Professor Julian D. M. Lew (appointed by the Claimant) and Michael E. Schneider (appointed by the Respondent)
Tribunal ruled as follows :
(1) Claimant is entitled to a declaration that Respondent committed a breach of its obligations under Article 4(1) of the Treaty on account of its expropriation of Claimant’s shareholdings in FM Bank PBP through restrictions taking the form of a suspension of its voting rights and the compulsory sale of shares.
(2) Claimant is entitled to compensation of losses due to Respondent’s expropriation of Claimant’s shareholdings in FM Bank PBP through restrictions taking the form of a suspension of its voting rights and the compulsory sale of shares. The amount of compensation will be determined on the basis of the specific values assigned in this Partial Award to the factors upon which valuation of the FM Bank PBP and Claimant’s losses depend under the methodology prescribed in this Partial Award. Computation of the value of FM Bank PBP and Claimant’s losses shall be performed jointly by the Experts appointed by the Parties in this case and in accordance with the provisions of Procedural Order no. 17 dated 24 June 2017. These amounts shall be included in the Final Award issued in this case.
(3) Claimant is entitled to post-award interest on the amount of liability to be determined in the Final Award from the date of that Award until its full satisfaction at the rate of 7% computed on a simple basis.
(4) The allocation of responsibility for costs and fees (including attorneys’ fees) will be determined in the Final Award issued in this case.
(5) Neither Party is entitled at this time to any additional relief. (¶650)