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Djibouti v. Doraleh Container and Others, Fourth Partial Final Award - Compound Interest on the Respondents' Counterclaims for Unpaid Royalties, July 1, 2019

1 Jul 2019
Republic of Djibouti, Djibouti Ports and Free Zone Authority, and Port de Djibouti SA v. Doraleh Container Terminal SA, DP World Djibouti FZCO and Dubai International Djibouti FZE (I), LCIA No. 142732
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Fourth Partial Final Award - Compound Interest on the Respondents' Counterclaims for Unpaid Royalties
Document Details:
LISTED PARTICIPANTS
Fourth Partial Final Award - Compound Interest on the Respondents' Counterclaims for Unpaid Royalties
Participants listed are for this document only and may not include all participants involved in the entire case. Always consult the original documents.
Claimant appointee
Peter Leaver
Respondent appointee
Leonard Hubert Hoffmann
Tribunal/Panel chair
Richard Aikens
Arbitrator(s)
Sole Arbitrator
ICSID Annulment Committee president
ICSID Annulment Committee members
WTO Appellate Body members
WTO Appellate Body chair
Judges
Claimant's counsel
Claimant's law firm
Respondent's counsel
Respondent's law firm
Other counsel
Claimant's expert
Claimant's expert firm
Respondent's expert
Pablo T. Spiller
Respondent's expert firm
Claimant's witness
Respondent's witness
Other witnesses
Tribunal secretary
Tribunal assistant
Third-party funder
Entities
Djibouti, Djibouti Ports and Free Zone Authority, Port de Djibouti SA, Doraleh Container Terminal SA, DP World Djibouti FZCO, Dubai International Djibouti FZE, Quinn Emanuel Urquhart & Sullivan
Country
Print reporter
Document Summary
Fourth Partial Final Award - Compound Interest on the Respondents' Counterclaims for Unpaid Royalties
This summary note is machine-generated. Always consult the original materials.

Procedural Posture

This document is the Fourth Partial Final Award issued by a London Court of International Arbitration (LCIA) tribunal. Following the issuance of the Third Partial Final Award, which found the Republic of Djibouti liable to Doraleh Container Terminal SA for unpaid royalties, the Tribunal directed the calculation of compound interest on the principal sum of US$87,947,236.

Principal Issues and Parties' Positions

The primary issue before the Tribunal was the quantification of compound interest owed on the unpaid royalties counterclaim for the period from 2011 to 2017. The Respondents submitted calculations prepared by their expert, Dr. Pablo Spiller, determining that compound interest up to April 11, 2019, amounted to US$11,300,000. The Respondents also sought an award for the costs incurred in calculating this interest, corresponding with the Tribunal regarding corrections to the Third Partial Final Award, and defending against a stay application filed by the Claimants. The Claimants did not submit any response or participate in this phase of the proceedings.

Tribunal's Analysis and Findings

In the absence of any objection from the Claimants, the Tribunal reviewed and accepted Dr. Spiller’s calculations, noting that the interest was calculated up to April 11, 2019. Regarding costs, the Tribunal applied the general principle that costs follow the event. It reasoned that the Respondents were entitled to the costs of the interest calculation because the Claimants had proffered no payment, necessitating the exercise. Furthermore, the Tribunal found it reasonable for the Claimants to bear the costs of necessary corrections to the prior award and the costs of the Respondents' successful defense against the Claimants' stay application.

Operative Directions

The Tribunal declared that the Republic of Djibouti must pay Doraleh Container Terminal SA US$11,300,000 in compound interest for the period up to April 11, 2019, with further interest compounding at yearly rests until the principal sum is paid in full. Additionally, the Tribunal ordered the Republic of Djibouti to pay £42,029.80 for the Respondents' legal and professional fees, alongside £10,038.11 for LCIA administration charges and the Tribunal's fees.