Steward Malta Limited, Steward Malta Management Limited and Steward Malta Assets Limited v. Republic of Malta
ICC · Investment (ICSID and treaty) · Malta · 3 Nov 2025
Why it matters
This award is significant for its detailed analysis of the impact of a national court judgment on an international commercial arbitration, particularly where the judgment declares the underlying contract void ab initio. The Tribunal's decision to award restoration rather than contractual damages, and its cost allocation reasoning, provide guidance on how arbitral tribunals may handle supervening domestic court decisions and the consequences for costs when parties reject bifurcation.
Summary
The dispute arose from a concession granted by the Government of Malta (GoM) to Steward entities for the redevelopment and management of three public hospitals. The concession was governed by a Concession Agreement and related instruments. In 2023, the Maltese Court of Appeal (Delia II) declared the concession void ab initio due to procedural irregularities. The Claimants initiated ICC arbitration seeking damages for wrongful termination, while Respondent counterclaimed. The Tribunal first addressed jurisdiction, finding it had jurisdiction over the Claimants but not over the Additional Parties. On the merits, the Tribunal upheld Respondent's Delia II Defense, holding that the concession was void ab initio under Maltese law, which precluded any contractual claims. However, the Tribunal applied Maltese Civil Code article 1209 on restoration, ordering Respondent to pay EUR 4,789,462 for the value of improvements made by Claimants, after setting off Respondent's tax claim. The Tribunal declined to award contractual damages or termination payments. On costs, the Tribunal ordered each party to bear its own legal costs, noting that both parties had rejected bifurcation which could have reduced costs. Exceptions were made for the emergency arbitrator costs (ordered against Claimants) and security for costs application (ordered against Respondent). The award is final and binding.
The detail
Parties: Steward Malta Limited, Steward Malta Management Limited and Steward Malta Assets Limited v. Republic of Malta
Case number: ICC Case No. 27684/ELU
Outcome: The Tribunal ordered Respondent to pay Claimants EUR 4,789,462 with interest, and each party to bear its own costs except for certain emergency arbitrator costs and security for costs.
Quantum: EUR 4,789,462
Applicable law: ICC Rules of Arbitration (2021), Maltese Civil Code, Concession Agreement and related agreements
Issues in play: The case involved the effect of a Maltese court judgment (Delia II) declaring the concession void ab initio, and the application of Maltese law on restoration (article 1209 MCC) following termination.
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