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Schoenherr Assists the Republic of Moldova in ICSID Tribunal

Schoenherr Assists the Republic of Moldova in ICSID Tribunal

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Schoenherr has represented the Republic of Moldova in front of an ICSID Tribunal, which on June 28, 2018, dismissed the bulk of damages sought by a group of US investors in a claim filed against the country under the state's bilateral investment treaty with the USA.

The dispute arose out of the investors' acquisition and subsequent loss of agricultural lease rights in Moldova's northern Floresti District. The investors claimed around USD 15 million in lost profits, interest, and other damages, and over USD 3 million in costs.

The arbitration commenced in February 2016. An evidentiary hearing, the first in Austria, was held at Schoenherr's Vienna office in December 2017.

In its award, the Tribunal dismissed the investor's claim for lack of jurisdiction, and awarded "only a small fraction of the amount claimed" -- around USD 400,000. According to Schoenherr, "since the State made no contribution to the costs of the proceedings, the investors were also awarded a portion of their arbitration costs and legal fees. Their other claims were all dismissed."

The Schoenherr team was led by Counsel Leon Kopecky and Associate Victoria Pernt, supported by Chisinau-based Attorney at Law Vladimir Iurkovski and Associate Anna Cusnir.