Santiago Romero Barst and María Auxiliadora Rodríguez v. Republic of Ecuador
PCA · Investment (ICSID and treaty) · Ecuador · 3 Dec 2025
Why it matters
This award is significant because it addresses the rarely litigated issue of whether a BIT protects investors who are dual nationals of both the home and host states. The Tribunal applied the principle of dominant and effective nationality from the Nottebohm case to deny jurisdiction, and also found an abuse of rights in the timing of the acquisition of nationality. The decision clarifies the limits of BIT protection for dual nationals and reinforces the importance of genuine connection to the home state.
Summary
The case concerns a dispute under the Italy-Ecuador BIT. Claimants, Santiago Romero Barst and María Auxiliadora Rodríguez, are Italian nationals who also hold Ecuadorian nationality. They invested in casinos in Ecuador through various companies. In 2011, Ecuador banned gambling, leading to the closure of their casinos. Claimants initiated arbitration under the UNCITRAL Rules, seeking compensation for alleged expropriation and unfair treatment. Ecuador objected to jurisdiction on two grounds: first, that the BIT does not protect dual nationals of both Italy and Ecuador; second, that Claimants' acquisition of Italian nationality was an abuse of rights. The Tribunal, by majority, upheld both objections. Applying the principle of dominant and effective nationality from the ICJ's Nottebohm case, the Tribunal found that Claimants' dominant and effective nationality was Ecuadorian, not Italian, because they had lived most of their lives in Ecuador, conducted business there, and had only acquired Italian nationality later in life. The Tribunal also found that the acquisition of Italian nationality shortly before the dispute arose, with the purpose of gaining BIT protection, constituted an abuse of rights. The Tribunal therefore declined jurisdiction. One arbitrator dissented. The award was issued on 3 December 2025, with the seat in Paris.
The detail
Parties: Santiago Romero Barst and María Auxiliadora Rodríguez v. Republic of Ecuador
Case number: PCA Case No. 2023-23
Outcome: The Tribunal declared it lacks jurisdiction over the claims; each party bears its own costs.
Applicable law: Italy-Ecuador BIT (2001); UNCITRAL Rules 1976; VCLT; general principles of international law
Issues in play: The case involved the principle of dominant and effective nationality and the doctrine of abuse of rights. The Tribunal had to determine whether dual nationals of the home and host states could claim protection under the BIT, and whether the acquisition of Italian nationality constituted an abuse of rights.
Read the full decision at italaw ↗
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