Case Details

Commerce Group Corp. and San Sebastian Gold Mines, Inc. v. Republic of El Salvador (ICSID Case No. ARB/09/17)

Subject of Dispute:

Mining concession
Economic Sector:

Oil, Gas & Mining
Instrument(s) Invoked:

CAFTA-DR (Dominican Republic-Central America Free Trade Agreement), Investment Law - El Salvador (1999)
Applicable Rules:

ICSID Convention - Arbitration Rules

(a) Original Proceeding

Claimant(s)/Nationality(ies):

Commerce Group Corp. (U.S.), San Sebastian Gold Mines, Inc. (U.S.)
Respondent(s):

Republic of El Salvador (Salvadoran)
Date Registered:

August 21, 2009
Date of Constitution of Tribunal:

July 1, 2010

Composition of Tribunal

President:

Albert Jan VAN DEN BERG (Dutch) - Appointed by the Secretary-General
Arbitrators:

Horacio A. GRIGERA NAÓN (Argentine) - Appointed by the Claimant(s)
J. Christopher THOMAS (Canadian) - Appointed by the Respondent(s)

Party Representatives

Claimant(s):

Machulak, Robertson & Sodos, S.C., Milwaukee, WI, U.S.A.
Respondent(s):

Dewey & LeBoeuf, Washington, D.C., U.S.A.
Language(s) of Proceeding:

English,Spanish
Status of Proceeding:

Concluded
Outcome of Proceeding:

March 14, 2011 - The Tribunal renders its award.

(b) Annulment Proceeding

Applicant(s)/Requesting Party(ies):

Claimant(s)
Date Registered:

July 15, 2011 (Claimant(s))
Date of Constitution of ad hoc Committee:

August 8, 2011

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

President:

Emmanuel GAILLARD (French)
Members:

Michael C. PRYLES (Australian)
Christoph H. SCHREUER (Austrian)

Party Representatives

Claimant(s):

Freshfields Bruckhaus Deringer, Washington, D.C., U.S.A.
Machulak, Robertson & Sodos, S.C., Milwaukee, WI, U.S.A.
Respondent(s):

Foley Hoag, Washington, D.C., U.S.A.
Language(s) of Proceeding:

English,Spanish
Status of Proceeding:

Concluded
Outcome of Proceeding:

August 28, 2013 - The ad hoc Committee issues a procedural order for the discontinuance of the proceeding for lack of payment of the required advances, pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e) and a decision on costs.

(a) Original Proceeding

Published Decisions

Award

Minutes of the First Session - English (Original) (July 27, 2010)

Available on the ICSID Website

Award (March 14, 2011) English (Original); Spanish (Original)

(b) Annulment Proceeding

Published Decisions

Decision on El Salvador's Application for Security for Costs

Order of the Committee Discontinuing the Proceeding and Decision on Costs

Available on the ICSID Website

Decision on El Salvador's Application for Security for Costs (September 20, 2012) English (Original)

Order of the Committee Discontinuing the Proceeding and Decision on Costs (August 28, 2013) English (Original)

(a) Original Proceeding

Date	Development
August 21, 2009	The Secretary-General registers a request for the institution of arbitration proceedings.
July 1, 2010	The Tribunal is constituted. Its members are: Albert Jan van den Berg (Dutch), President; Horacio A. Grigera Naón (Argentine); and J. Christopher Thomas (Canadian).
July 27, 2010	The Tribunal holds a first session by telephone conference.
August 16, 2010	The Respondent files preliminary objections pursuant to CAFTA Article 10.20.5.
September 15, 2010	The Claimants file a response on preliminary objections pursuant to CAFTA Article 10.20.5.
September 30, 2010	The Respondent files a reply on preliminary objections pursuant to CAFTA Article 10.20.5.
October 15, 2010	The Claimants file a rejoinder on preliminary objections pursuant to CAFTA Article 10.20.5.
October 19, 2010	The Tribunal issues a procedural order inviting non-disputing parties to file written submissions pursuant CAFTA Article 10.20.3 and ICSID Arbitration Rule 37(2).
November 1, 2010	The Republic of Costa Rica and the Republic of Nicaragua each file a written submission as a non-disputing party pursuant to CAFTA Article 10.20.2.
November 15, 2010	The Tribunal holds a hearing on preliminary objections pursuant to CAFTA Article 10.20.5. in Washington, D.C.
March 14, 2011	The Tribunal renders its award.

(b) Annulment Proceeding

Date	Development
July 15, 2011	The Secretary-General registers an application for the institution of annulment proceedings.
August 8, 2011	The ad hoc Committee is constituted. Its members are: Emmanuel Gaillard (French), President; Michael C. Pryles (Australian); and Christoph Schreuer (Austrian).
September 26, 2011	The ad hoc Committee holds a first session by telephone conference.
December 15, 2011	Commerce Group Corp. and San Sebastian Gold Mines, Inc. file a memorial on annulment.
December 19, 2011	The Secretary-General moves that the ad hoc Committee stay the proceeding pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
December 19, 2011	The proceeding is stayed for non-payment of the required advances pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
July 23, 2012	The proceeding is resumed following payment of the required advances.
August 10, 2012	The Republic of El Salvador files a request for security for costs.
August 17, 2012	Commerce Group Corp. and San Sebastian Gold Mines, Inc. file observations on the Republic of El Salvador's request for security for costs of August 10, 2012.
August 27, 2012	The Republic of El Salvador files a reply on security for costs.
September 5, 2012	Commerce Group Corp. and San Sebastian Gold Mines, Inc. file a rejoinder on security for costs.
September 20, 2012	The ad hoc Committee issues a decision on security for costs.
October 19, 2012	The Republic of El Salvador files a counter-memorial on annulment.
November 23, 2012	Commerce Group Corp. and San Sebastian Gold Mines, Inc. file a reply on annulment.
December 19, 2012	The Secretary-General moves that the ad hoc Committee stay the proceeding pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
December 21, 2012	The proceeding is stayed for non-payment of the required advances pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
August 9, 2013	The Acting Secretary-General moves that the ad hoc Committee discontinue the proceeding for lack of payment of the required advances, pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
August 28, 2013	The ad hoc Committee issues a procedural order for the discontinuance of the proceeding for lack of payment of the required advances, pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e) and a decision on costs.