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Procedural Background
In the annulment proceedings of Peteris Pildegovics and SIA North Star v. Kingdom of Norway (ICSID Case No. ARB/20/11), the ad hoc Committee addressed the Applicants' urgent request concerning a USD 250,000 call for funds issued by ICSID. The Applicants sought to delay the payment deadline until after the scheduled hearing, requested a 50-50 reapportionment of the advance on costs, and proposed a remote hearing as an alternative to the planned in-person format in Paris.
Parties' Positions
The Applicants argued that severe financial distress, exacerbated by the global fuel crisis impacting the fisheries industry, justified the deferral and reapportionment. They further invoked EU and EEA legal principles regarding effective access to justice. The Respondent opposed the application, characterizing the Applicants as serial non-payers whose previous defaults had already caused two procedural suspensions and significant prejudice. The Respondent maintained that ICSID rules strictly allocate annulment costs to the applicant and disputed the relevance of the cited European judicial frameworks.
Committee's Analysis and Decision
To mitigate further expenses for all participants, the Committee first determined that the hearing would be conducted remotely rather than in person. Turning to the allocation of costs, the Committee denied the Applicants' request for reapportionment. The Committee emphasized that ICSID Administrative and Financial Regulation 15(5) explicitly places the sole financial responsibility for advance payments in annulment proceedings on the applicant, distinguishing this framework from the default 50-50 allocation applicable in initial arbitration proceedings.
Finally, regarding the request to defer the payment deadline, the Committee concluded it lacked the authority to grant such relief. The Committee noted that Article 44 of the ICSID Convention does not apply to the Centre's Administrative and Financial Regulations, thereby vesting the exclusive power to manage payment deadlines, issue default notices, and suspend proceedings for non-payment with the ICSID Secretary-General.