{"id":351,"date":"2008-10-24T04:47:00","date_gmt":"2008-10-24T09:47:00","guid":{"rendered":"http:\/\/itn.mattrock.ca\/2008\/10\/24\/jurisdictional-decision-sees-light-of-day-in-dispute-between-a-greek-claimant-and-serbia-montenegro\/"},"modified":"2013-02-08T05:30:23","modified_gmt":"2013-02-08T11:30:23","slug":"jurisdictional-decision-sees-light-of-day-in-dispute-between-a-greek-claimant-and-serbia-montenegro","status":"publish","type":"post","link":"https:\/\/www.iisd.org\/itn\/2008\/10\/24\/jurisdictional-decision-sees-light-of-day-in-dispute-between-a-greek-claimant-and-serbia-montenegro\/","title":{"rendered":"Jurisdictional decision sees light of day in dispute between a Greek claimant and Serbia-Montenegro"},"content":{"rendered":"

By Damon Vis-Dunbar
\n24 October 2008
\n<\/strong>
\nA previously unpublished 2006 partial award on jurisdiction in an arbitration between a Greek industrial group and the government of Serbia\u00a0 and Montenegro was released in October 2008, providing a fuller description of the little-publicized dispute.<\/p>\n

The row relates to a series of contracts between Mytilineos Holdings SA and RTB-BOR, a state-owned company involved in mineral extraction and metallurgy. Under the contracts, Mytilineos provided financing and spare parts to RTB-BOR, in exchange for the sale of copper. Mytilineos was also to be given a priority to buy a stake in RTB-BOR in the case that it was privatized.<\/p>\n

The cooperation failed, however, as RTB-BOR struggled to pay back its debts. Mytilineos registered a claim under the Greek-Serbia and Montenegro bilateral investment treaty in 2005, seeking some US$ 31 million in damages.<\/p>\n

The tribunal\u2019s jurisdiction was challenged, in part, on the grounds that the contracts between Mytilineos and RTB-BOR did not constitute an \u201cinvestment\u201d as imagined by the BIT<\/span>. Notably, the tribunal diverged on this question, with two members (Prof. August Reinisch and Prof. Stelios Koussoulis ) arguing in favour of jurisdiction, while the third arbitrator (Professor Dobrasav Mitrovic) declined jurisdiction on the grounds that Mytilineos has not complied with national legislation on foreign investment.<\/p>\n

With the majority of the tribunal deciding in favour of jurisdiction, the path was cleared for a ruling on the merits. But progress has been hampered, first with the resignation of Prof. Mitrovic, then later with the passing away of Prof. Koussoulis , according to counsel for Mytilineos, the Greek law firm Moussas & Tsibris. A tribunal has been reconstituted, however, and written pleadings on the merits have been filed.<\/p>\n

Sources:
\n<\/strong>
\nThe partial award on jurisdiction and dissenting opinion in Mytilineos Holdings SA v. The State Union of Serbia & Montenegro and Republic of Serbia are available at: http:\/\/ita.law.uvic.ca\/<\/a><\/p>\n

\u201cGreek investor sues over mining operation in first known BIT case against Serbia\u201d, By Damon Vis-Dunbar, Investment Treaty News, December 19, 2006<\/p>\n