Jak Sukyas v. Romania
UNCITRAL · Investment (ICSID and treaty) · Romania · 6 Nov 2024
Why it matters
This partial award addresses multiple jurisdictional objections in a complex investment arbitration involving historical property claims dating back to the 1940s. It clarifies the interplay between different BITs and the application of the abuse of rights doctrine, setting important precedents for claims involving dual nationals and parallel proceedings.
Summary
Mr. Jak Sukyas, a U.S. citizen who also holds Turkish nationality, initiated arbitration against Romania under the US-Romania BIT and later invoked the Turkey-Romania BIT. The dispute concerns alleged expropriation of shares in a pharmaceutical laboratory (CIRO) that belonged to his father and uncle, taken by the Romanian state in 1948. Claimant sought compensation for the loss of the investment and subsequent denial of justice in Romanian courts. The Tribunal issued a Partial Award on Jurisdiction, deciding that it lacked jurisdiction over the Turkey-Romania BIT claims because Claimant did not establish that he was a Turkish national at the relevant times. Regarding the US-Romania BIT claims, the Tribunal joined several objections to the merits, including whether Claimant had an 'investment' (ratione materiae), whether the claims were time-barred (ratione temporis), whether the claims had been settled, whether Claimant satisfied the continuous nationality rule, and whether the legality requirement was breached. The Tribunal dismissed other objections, including the fork-in-the-road provision and abuse of rights, finding no abuse in Claimant's use of multiple fora for different causes of action. The Tribunal reserved costs for a later stage.
The detail
Parties: Jak Sukyas v. Romania
Case number: PCA Case No. 2020-53
Outcome: Partial Award on Jurisdiction: Tribunal declined jurisdiction over Turkey-Romania BIT claims; joined several objections under US-Romania BIT to merits; dismissed other objections.
Applicable law: US-Romania BIT (1992), Turkey-Romania BIT (2008), UNCITRAL Arbitration Rules (2010)
Issues in play: The case involves jurisdictional issues under two bilateral investment treaties, including ratione materiae, ratione temporis, continuous nationality, legality requirement, fork-in-the-road, and abuse of rights.
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