Dunkeld International Investment Ltd. v. Government of Belize (II)
PCA · Investment (ICSID and treaty) · Netherlands · 31 Dec 2016
Why it matters
This termination order illustrates how a tribunal handles cost allocation when parties settle during arbitration, particularly when one party has not participated. It clarifies the application of UNCITRAL Rules on costs and the return of deposits, and shows the interplay between related arbitrations (PCA Case No. 2010-13).
Summary
This is a termination order in an UNCITRAL arbitration between Dunkeld International Investment Ltd. and the Government of Belize. The proceedings were suspended in February 2014. In September 2015, the parties reached a settlement agreement that defined remaining issues to be determined in a related arbitration (PCA Case No. 2010-13). That related arbitration issued an award in June 2016, deciding the disposition of Dunkeld's legal costs in the present proceedings. After that award, both parties confirmed no issues remained. The Tribunal then issued this termination order under Article 34(2) of the UNCITRAL Rules. The order fixes the arbitration costs: total tribunal costs of €169,099.60, plus fees of the PCA Secretary-General and appointing authority. The parties had deposited €830,000.00 (€505,000 by Claimant, €325,000 by Respondent). After deducting costs, the remaining deposit of €45,631.14 was returned proportionally. The Tribunal ordered the Respondent to pay the Claimant €18,336.10 to equalize the cost contributions, reflecting the Respondent's share of tribunal costs and half of the appointing authority fees. The order was made in The Hague on 31 December 2016.
The detail
Parties: Dunkeld International Investment Ltd. v. Government of Belize (II)
Case number: PCA Case No. 2010-21
Outcome: The proceedings were terminated by agreement; the Tribunal ordered the Respondent to pay the Claimant €18,336.10 to equalize cost contributions.
Quantum: €18,336.10
Applicable law: UNCITRAL Rules (1976)
Issues in play: The case involved the allocation of arbitration costs between the parties under Articles 38 and 40 of the UNCITRAL Rules, and the effect of a settlement agreement on pending proceedings.
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