The International Centre for the Settlement of Investment Disputes granted Ioan Micula and three of his companies – represented by King & Spalding – a USD 250 million award against the Republic of Romania.
It found that Romania's early termination of a multi-year incentive program was improper, despite evidence showing that Romania was required to terminate the program prematurely to comply with European Union law.
Although the EU Commission intervened in the case on behalf of Romania, the ICSID rejected the suggestion that a State can rely on its EU obligations to escape liability when it has violated specific legal protections owed to foreign investors. As a result, King & Spalding claims that this award “could have an impact on the evolution of international law.”
King & Spalding international arbitration Partners Eric Schwartz, Reggie Smith, Ken Fleuriet, and Craig Miles worked on the case, along with counsel Ric Toher, senior associate Amy Frey, and associate Jamie Miller.