Case Details

Magyar Farming Company Ltd, Kintyre Kft and Inicia Zrt v. Hungary (ICSID Case No. ARB/17/27)

Subject of Dispute:

Farming Enterprise
Economic Sector:

Agriculture, Fishing & Forestry
Instrument(s) Invoked:

BIT United Kingdom of Great Britain and Northern Ireland - Hungary 1987
Applicable Rules:

ICSID Convention - Arbitration Rules

(a) Original Proceeding

Claimant(s)/Nationality(ies):

Kintyre Kft (Hungarian), Inicia Zrt (Hungarian), Magyar Farming Company Ltd (British)
Respondent(s):

Hungary (Hungarian)
Date Registered:

August 1, 2017
Date of Constitution of Tribunal:

January 4, 2018

Composition of Tribunal

President:

Gabrielle KAUFMANN-KOHLER (Swiss) - Appointed by the Parties
Arbitrators:

Stanimir A. ALEXANDROV (Bulgarian) - Appointed by the Claimant(s)
Inka HANEFELD (German) - Appointed by the Respondent(s)

Party Representatives

Claimant(s):

Zannis Mavrogordato, London, U.K.
LFB László Fekete Bagaméry, Budapest, Hungary
Respondent(s):

DLA Piper, Paris, France
Sárhegyi and Parters Law Firm, Budapest, Hungary
Horváth & Partners Law Firm DLA Piper, Budapest, Hungary
Language(s) of Proceeding:

English
Status of Proceeding:

Concluded
Outcome of Proceeding:

November 13, 2019 - The Tribunal renders its award.

(b) Annulment Proceeding

Applicant(s)/Requesting Party(ies):

Respondent(s)
Date Registered:

March 19, 2020 (Respondent(s))
Date of Constitution of ad hoc Committee:

June 1, 2020

Composition of ad hoc Committee (Appointed by the Chairman of the Administrative Council)

President:

Geneviève BASTID BURDEAU (French)
Members:

Manuel CONTHE (Spanish)
Michael D. NOLAN (U.S.)

Party Representatives

Claimant(s):

Zannis Mavrogordato, London, U.K.
Law Firm of András Dániel László, Budapest, Hungary
Respondent(s):

DLA Piper Posztl, Nemescsói, Györfi-Tóth & Partners Law Firm, Budapest, Hungary
DLA Piper France, Paris, France
Sárhegyi and Parters Law Firm, Budapest, Hungary
Language(s) of Proceeding:

English
Status of Proceeding:

Concluded
Outcome of Proceeding:

November 16, 2021 - The ad hoc Committee issues its decision on annulment.

(a) Original Proceeding

Published Decisions

Award of the Tribunal

Available on the ICSID Website

Award of the Tribunal (November 13, 2019) English (Original)

(b) Annulment Proceeding

Published Decisions

Decision on annulment (excerpts)

Available on the ICSID Website

Decision on annulment (excerpts) (November 16, 2021) English (Original)

(a) Original Proceeding

Date	Development
August 1, 2017	The Secretary-General registers a request for the institution of arbitration proceedings.
September 13, 2017	Following appointment by the Claimants, Stanimir A. Alexandrov (Bulgarian) accepts his appointment as arbitrator.
October 10, 2017	Following appointment by the Respondent, Inka Hanefeld (German) accepts her appointment as arbitrator.
January 4, 2018	The Tribunal is constituted in accordance with Article 37(2)(a) of the ICSID Convention. Its members are: Gabrielle Kaufmann-Kohler (Swiss), President, appointed by agreement of the parties; Stanimir A. Alexandrov (Bulgarian), appointed by the Claimants; and Inka Hanefeld (German), appointed by the Respondent.
January 4, 2018	Following appointment by agreement of the parties, Gabrielle Kaufmann-Kohler (Swiss) accepts her appointment as presiding arbitrator.
January 26, 2018	The Tribunal holds a first session by telephone conference.
February 14, 2018	The Tribunal issues Procedural Order No. 1 concerning procedural matters.
March 30, 2018	The Respondent files a request to address the objections to jurisdiction as a preliminary question.
April 4, 2018	The Claimants file observations on the request to address the objections to jurisdiction as a preliminary question.
April 10, 2018	The Tribunal decides on the Respondent’s request to address the objections to jurisdiction as a preliminary question.
April 27, 2018	The Claimants file a memorial on the merits.
August 22, 2018	A non-disputing party files an application pursuant to ICSID Arbitration Rule 37(2).
August 30, 2018	Each party files observations on the non-disputing party’s application.
September 5, 2018	The Tribunal issues a decision on the non-disputing party’s application pursuant to ICSID Arbitration Rule 37(2).
September 7, 2018	The Respondent files a counter-memorial on the merits and a memorial on jurisdiction.
October 29, 2018	The Tribunal issues Procedural Order No. 2 concerning production of documents.
December 20, 2018	The Claimants file a reply on the merits and a counter-memorial on jurisdiction.
March 26, 2019	The Respondent files a rejoinder on the merits and quantum and a reply on jurisdiction.
April 26, 2019	The Claimants file a rejoinder on jurisdiction.
April 29, 2019	The President of the Tribunal holds a pre-hearing organizational meeting with the parties by telephone conference.
May 10, 2019	The Tribunal issues Procedural Order No. 3 concerning procedural matters.
May 27, 2019 - May 30, 2019	The Tribunal holds a hearing on jurisdiction and the merits in Paris.
June 3, 2019	The Tribunal issues Procedural Order No. 4 concerning procedural matters.
November 13, 2019	The Tribunal renders its award.

(b) Annulment Proceeding

Date	Development
March 19, 2020	The Secretary-General registers an application for annulment of the award filed by Hungary and notifies the parties of the provisional stay of enforcement of the award.
June 1, 2020	The ad hoc Committee is constituted in accordance with Article 52(3) of the ICSID Convention. Its members are: Geneviève Bastid Burdeau (French), President; Manuel Conthe (Spanish); and Michael D. Nolan (U.S.); all members appointed by the Chairman of the Administrative Council.
July 14, 2020	Hungary files a request to continue the stay of enforcement of the award.
July 24, 2020	Magyar Farming Company Ltd, Kintyre Kft and Inicia Zrt file observations on Hungary’s request to continue the stay of enforcement of the award.
July 28, 2020	The ad hoc Committee holds a first session and a hearing on the stay of enforcement of the award by telephone conference.
August 1, 2020	The ad hoc Committee issues Procedural Order No. 1 concerning procedural matters.
September 11, 2020	The ad hoc Committee issues a decision on the continuation of the stay of enforcement of the award.
October 19, 2020	Hungary files a memorial on annulment.
January 29, 2021	Magyar Farming Company Ltd, Kintyre Kft and Inicia Zrt file a counter-memorial on annulment.
February 17, 2021	A non-disputing party files an application to file a written submission pursuant to ICSID Arbitration Rule 37(2).
February 20, 2021	Magyar Farming Company Ltd, Kintyre Kft and Inicia Zrt file observations on the non-disputing party’s application.
March 12, 2021	Hungary files a reply on annulment.
March 12, 2021	Hungary files observations on the non-disputing party’s application.
March 22, 2021	The Tribunal issues a decision concerning the non-disputing party’s request of February 17, 2021.
March 29, 2021	The non-disputing party files a written submission pursuant to ICSID Arbitration Rule 37(2).
April 12, 2021	Hungary files observations on the non-disputing party’s written submission.
April 23, 2021	Magyar Farming Company Ltd, Kintyre Kft and Inicia Zrt file a rejoinder on annulment.
May 11, 2021	The ad hoc Committee holds a pre-hearing organizational meeting with the parties by telephone conference.
June 5, 2021	The ad hoc Committee issues Procedural Order No. 2 concerning hearing organization.
June 21, 2021	The ad hoc Committee holds a hearing on annulment by video conference.
July 8, 2021	Each party files a statement of costs.
November 16, 2021	The ad hoc Committee issues its decision on annulment.