Uruguay is ordered to pay approximately 3 million USD in costs

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Measures that forced the investor to dispose of all share without compensation also amounted to an indirect expropriation

State actions that exacerbated Pluna’s financial difficulties were inconsistent, imprudent, and irrational, and thus in breach of FET standard

Tribunal finds that government carried out press campaign against Pluna

ANCAP’s conduct exacerbated Pluna’s financial difficulties

State representatives voted against critical loan, causing serious cash-flow crisis

BIT contains autonomous FET standard, which protects investors from grossly idiosyncratic conduct

Pluna was in a situation of financial fragility in early 2012

Even if LARAH were bound by the MoU’s renunciation of rights, it would be able to bring BIT claims since a resolutory condition was triggered

LARAH did not renounce its right to bring BIT claims

No need to decide whether (and which form of) Salini test applies, since test would be met in any event

Claimant confirms that it made no independent claims related to measures taken after critical date

Claimant proved that it indirectly owned Pluna at the critical date

While questions of ownership are governed by Panamanian law, questions of proof are subject to ICSID Rules

Background: Dispute over failed aviation venture leads to treaty claim

Claimants are ordered to bear 70% of the overall costs of the arbitration, totalling over 29 million USD

Conduct carried out after request for arbitration may be covered by the BIT, but falls outside of the tribunal’s jurisdiction

Continuing wrongful act doctrine cannot apply in the absence of an underlying obligation

BIT does not apply to pre-existing disputes

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