Miminco LLC and others v. Democratic Republic of the Congo
ICSID · Investment (ICSID and treaty) · Democratic Republic of the Congo · 19 Nov 2007
Why it matters
This case is a consent award that illustrates the use of ICSID's mechanism for recording a settlement agreement as an award, providing enforceability under the ICSID Convention. It demonstrates how parties can resolve investment disputes amicably with the tribunal's oversight, and the award reflects the DRC's willingness to settle to avoid prolonged litigation and potential higher damages.
Summary
Miminco LLC, a US company, and two US citizens owned two diamond mining concessions in the Democratic Republic of the Congo (DRC). During the civil war that began in 1996, the concessions were invaded, pillaged, and unlawfully operated by Congolese civil and military authorities. The investors initiated ICSID arbitration under the US-Zaire Bilateral Investment Treaty, claiming USD 35 million in damages. The DRC did not contest jurisdiction. In April 2005, the parties signed a settlement agreement for USD 15 million, subject to approval by the Congolese government. In November 2005, after negotiations, the amount was reduced to USD 13 million. The DRC approved the settlement in September 2007. The parties requested the tribunal to embody the settlement in an award under ICSID Arbitration Rule 43(2). The tribunal issued a consent award on November 19, 2007, recording the settlement and ordering the DRC to pay USD 13 million. The award also noted that the Claimants would bear all arbitration costs and each party would bear its own representation costs.
The detail
Parties: Miminco LLC and others v. Democratic Republic of the Congo
Case number: ICSID Case No. ARB/03/14
Outcome: The Tribunal issued a consent award embodying the settlement agreement, ordering the DRC to pay USD 13,000,000 to the Claimants as compensation.
Quantum: USD 13,000,000
Applicable law: ICSID Convention, Arbitration Rules, and the US-Zaire Bilateral Investment Treaty (1984)
Issues in play: The dispute involved the protection of foreign investment under the BIT and the ICSID Convention, with the DRC's liability for acts of its civil and military authorities causing loss to the investors' mining concessions.
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