Embassy Law | Nov 25, 2012

Embassy Law Web Log   
Washington, DC, USA      




Arbitral Award Again Confirmed

The Republic of Peru lost a motion to vacate an ICSID arbitral award, see ICSID Award Against Peru Confirmed, on September 14, 2012. The republic then pursued a second motion to deny confirmation of interest on the award on grounds of ambiguity of the appropriate interest rate. In Duke Energy International Peru Investments No. 1 Ltd. V. Republic of Peru, docket number 11-1602, DEI argues again that the United States District Court for the District of Columbia should confirm its previous confirmation.

The court granted Peru an additional briefing, and Peru contended that the amended Article 38 of its Tax Code does not apply to the award, and the previously confirmed interest rate is invalid. On November 19, 2012, the court found the state's argument for the application of Peruvian tax law irrelevant and explained that a remand of the award would be warranted only in cases of ambiguity. Because Peru failed to prove any ambiguity, the court reaffirmed the previous award in favor of DEI. -- Caroline Covington, legal assistant, Berliner, Corcoran & Rowe, LLP, Washington, DC.