Uncitral Tribunal Dismisses Health Screening Arbitration Against Kuwait

18 June 2020 Kuwait

An United Nations Commission on International Trade Law (UNCITRAL) tribunal hearing the claims in Conseil Economique des Pays Musulmans v. Kuwait (https://www.iareporter.com/arbitrationcases/conseil-economique-des-pays-musulmans-v-kuwait/) has put an end to the arbitration proceedings. IAReporter reported that, in a June 9, 2020 award, the tribunal of Jean Kalicki (http://www.iareporter.com/arbitrator/Kalicki) (chair, nominated by the co-arbitrators), Kewal Singh Ahuja (claimant’s appointee) and Attila Tanzi (https://www.iareporter.com/arbitrator/Tanzi) (respondent’s nominee) has dismissed the claimant’s claims with prejudice. We understand that the dismissal was based on a previous withdrawal of claims by Conseil Economique des Pays Musulmans.

An UNCITRAL tribunal has dismissed an US$86 million investment treaty claim over the termination of contracts for health-screening services – after a related US$800 million treaty claim was also discontinued.

The tribunal also ordered the claimant to bear 50% of the arbitration costs, as well as 100% of Kuwait’s legal fees and expenses. As previously reported (https://www.iareporter.com/articles/swiss-ngofiles-investment-treaty-claim-against-kuwait/), the dispute related to the termination, by Kuwait’s Ministry of Health, of a contract for the medical examination of foreign workers. The claimant initiated UNCITRAL arbitration proceedings in 2018, arguing that Kuwait had breached the underlying Kuwait-Switzerland bilateral investment treaty.

The claimant was represented by Dechert in Washington DC. (Dechert assumed the representation of the claimant after the claimant’s previous counsel, DMDB Law, withdrew from the case in 2019.) Kuwait relied on counsel from Curtis, Mallet-Prevost, Colt & Mosle in London and Washington DC. Readers may recall that another UNCITRAL case arising out of similar facts, Alcosa v. Kuwait (https://www.iareporter.com/arbitrationcases/alcosa-v-kuwait/), seemingly remains pending.

In April of 2020, the Alcosa case, which is unfolding under the Kuwait-Spain BIT, was still awaiting the constitution of the arbitral tribunal (https://www.iareporter.com/articles/kuwait-round-up-an-update-onpending-treaty-based-arbitrations-against-the-state/).

 

SOURCE : THETIMES

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