Bedri Selmani v. Republic of Kosovo
ICC · Investment (ICSID and treaty) · Kosovo · 1 Aug 2022
Why it matters
This case clarifies the limits of state succession for investment obligations under a UN administration, and the temporal scope of investment treaties. It confirms that an ad hoc permission from UNMIK did not create continuing rights against the independent Republic of Kosovo, and that the 2014 LFI does not retroactively cover UNMIK conduct. The award also addresses attribution of UNMIK acts to Kosovo and the definition of investment under domestic law.
Summary
Mr. Bedri Selmani, a dual Croatian-Kosovo national, invested in petrol stations in Kosovo under a 1999 UNMIK Permission. After Kosovo's independence in 2008, he faced difficulties obtaining licenses and was dispossessed of stations through tenders by the Privatization Agency of Kosovo (PAK). He brought an ICC arbitration under Kosovo's 2014 Law on Foreign Investment (LFI), claiming expropriation, unfair treatment, and breach of protection. The tribunal found it had jurisdiction only over claims relating to rights continuing after independence and conduct attributable to Kosovo post-2014. On the merits, it dismissed all claims, holding that the UNMIK Permission did not bind Kosovo and that Mr. Selmani failed to prove any breach of the 2014 LFI. The tribunal also rejected claims of a smear campaign, denial of licenses, and denial of justice. Costs were awarded to Kosovo.
The detail
Parties: Bedri Selmani v. Republic of Kosovo
Case number: ICC Case No. 24443/MHM/HBH
Outcome: All of Mr. Selmani's claims dismissed; Kosovo awarded USD 1,477,165.38 and EUR 71,653.305 in costs.
Applicable law: Kosovo Law No. 04/L-220 on Foreign Investment (2014 LFI), ICC Rules
Issues in play: Whether the UNMIK Permission (issued by UN interim administration) survived Kosovo's independence and bound Kosovo; whether the 2014 LFI allowed claims for pre-2014 conduct by UNMIK.
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