Joseph Charles Lemire v. Ukraine
ICSID · Investment (ICSID and treaty) · Ukraine · 18 Sep 2000
Why it matters
This case is an early example of an ICSID Additional Facility arbitration where the dispute was settled and recorded as an award on agreed terms. It illustrates the use of the Additional Facility when the host state is not a party to the ICSID Convention, and highlights the flexibility of the ICSID framework to accommodate settlements.
Summary
Joseph Charles Lemire, a US national, initiated arbitration against Ukraine under the ICSID Additional Facility, relying on the 1994 US-Ukraine Bilateral Investment Treaty. Ukraine objected to the Tribunal's competence, but the Tribunal joined the objection to the merits. Before a final decision on jurisdiction or merits, the parties reached a settlement agreement on March 20, 2000. The settlement was recorded as an award on agreed terms under Article 50 of the ICSID Additional Facility Arbitration Rules. Ukraine agreed to take certain steps, including examining radio frequency quality, considering license applications for Gala Radio in several cities, and proposing locations for a beauty salon. Both parties waived all claims and agreed to bear their own costs. The Tribunal ordered that the fees and expenses of the Tribunal and ICSID be borne equally by the parties. The award was published in the ICSID Review.
The detail
Parties: Joseph Charles Lemire v. Ukraine
Case number: ICSID Case No. ARB(AF)/98/1
Outcome: The dispute was settled on agreed terms; the Tribunal recorded the settlement as an award. Ukraine agreed to take steps to improve radio broadcasting conditions for Gala Radio and consider license applications, and both parties waived further claims.
Applicable law: 1994 US-Ukraine Bilateral Investment Treaty; ICSID Additional Facility Arbitration Rules
Issues in play: The case involved the interpretation of the US-Ukraine BIT and ICSID Additional Facility Rules, particularly regarding jurisdiction and the tribunal's competence to hear the dispute.
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