Arnold & Porter’s International Arbitration group has once again proven its mettle, securing a fifth consecutive victory for the Republic of Costa Rica. This latest win further cements the firm’s industry-leading 98.2% success rate in defending States in investment treaty proceedings.
The Decade-Long Dispute: Costa Rica vs. Infinito Gold
The case at the heart of this victory involved a decade-long dispute with Canadian mining company Infinito Gold Ltd. The conflict centered around a gold mine project, with Infinito challenging measures taken by Costa Rica to protect its environment and local communities from the adverse effects of open-pit mining activities. The stakes were high, with Infinito seeking nearly $400 million in compensation under the Canada-Costa Rica bilateral investment treaty (Infinito Gold Ltd. v. Republic of Costa Rica, ICSID Case No. ARB/14/25).
Arnold & Porter’s Defense Strategy
Arnold & Porter mounted a robust defense on behalf of Costa Rica. The firm’s strategy was clear: protect the nation’s right to enforce environmental safeguards and uphold the interests of local communities. This approach resonated with the ICSID tribunal, which on June 4, 2021, issued an award rejecting Infinito’s $400 million compensation claim in its entirety.
Infinito’s Attempted Annulment
Not willing to accept defeat, Infinito initiated annulment proceedings before ICSID, seeking to overturn the Tribunal’s decision on damages. However, just days after Costa Rica submitted its final written submission, Infinito withdrew its annulment claims with prejudice. On July 15, 2024, the annulment Committee confirmed the discontinuance of the proceeding, definitively concluding the dispute and solidifying Arnold & Porter’s significant victory.
Unmatched Success Rate
This win adds to Arnold & Porter’s unparalleled track record, now boasting 55 positive results out of the most recent 56 awards and decisions in favor of States in investment treaty disputes. Such a record is not just impressive; it sets a new standard in the field of international arbitration.
The Winning Team
The team behind this latest victory was led by partners Patricio Grané Labat and Paolo Di Rosa. They were ably supported by counsel Álvaro Nistal, senior associates Katelyn Horne and Paloma García Guerra, and legal consultant Natalia Giraldo-Carrillo. Their combined expertise and strategic approach were instrumental in securing this win.
The Importance of This Victory
This victory is not just a win for Costa Rica; it’s a win for environmental protection and the rights of sovereign states to govern activities within their borders. It sends a clear message to corporations that they cannot expect to bypass local regulations without facing significant legal challenges.
The Role of Environmental Protection
At the core of this dispute was Costa Rica’s commitment to protecting its environment. The measures challenged by Infinito were designed to safeguard local communities and the natural landscape from the detrimental effects of open-pit mining. This case underscores the importance of environmental regulations and the necessity for nations to stand firm in their enforcement.
Looking Ahead
With this victory, Costa Rica can continue to implement and enforce its environmental policies without the looming threat of exorbitant compensation claims. For Arnold & Porter, this win is a testament to their legal prowess and their unwavering dedication to defending state sovereignty in investment treaty disputes.
Arnold & Porter’s latest victory for Costa Rica is more than just a legal win; it’s a triumph for environmental protection, state sovereignty, and the rule of law. As the firm continues to set benchmarks in international arbitration, their success serves as a reminder of the importance of strategic legal defense and the protection of national interests.
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