This summary note is machine-generated. Always consult the original materials.
Procedural Background
The Paris Court of Appeal (Cour d'appel de Paris) heard an application by the Plurinational State of Bolivia to set aside an arbitral award rendered on September 8, 2023, under the UNCITRAL Arbitration Rules in PCA Case No. 2016-39/AA641. The underlying dispute arose from Bolivia's nationalization of the Colquiri Mine and the Vinto tin and antimony smelters, which had been acquired by Glencore Finance (Bermuda) Ltd. The arbitral tribunal had found Bolivia in breach of the UK-Bolivia Bilateral Investment Treaty (BIT) and awarded Glencore approximately USD 253.5 million in damages.
Issues and Parties' Positions
Bolivia sought annulment under Article 1520(1) and (5) of the French Code of Civil Procedure, arguing that the tribunal wrongly upheld jurisdiction and that the award's recognition would violate international public policy. Specifically, Bolivia contended that Glencore's investment was illegal, having been acquired through a corrupt privatization process, and that Glencore's corporate restructuring constituted an abuse of rights designed solely to gain BIT protection. Glencore maintained that the tribunal's jurisdictional findings were sound, emphasizing the autonomy of the arbitration agreement and the absence of any proven corruption or illegality attributable to it during the acquisition.
Court's Analysis and Findings
The Court rejected Bolivia's jurisdictional challenge, holding that the UK-Bolivia BIT's standing offer to arbitrate was autonomous and not expressly conditioned on the investment's compliance with domestic law. The Court further found no abuse of rights, noting that the corporate restructuring occurred well before the nationalization decrees and the crystallization of the dispute. Regarding international public policy, the Court conducted a de novo review but concluded that Bolivia failed to provide serious, precise, and consistent evidence (indices graves, précis et concordants) that the investment was tainted by corruption or that Glencore was complicit in any alleged misappropriation of public assets by third parties during the initial privatizations.
Decision
The Court dismissed the annulment application in its entirety, thereby granting exequatur to the arbitral award pursuant to Article 1527 of the French Code of Civil Procedure. Bolivia was ordered to bear the costs of the proceedings and to pay Glencore EUR 200,000 under Article 700 of the Code of Civil Procedure.