Linklaters secures victory for the Dominican Republic in international treaty arbitration

Linklaters successfully represented the Dominican Republic in a United Nations Commission on International Trade Law (UNCITRAL) arbitration related to a bus service contract with a Spanish auto parts company, Recalvi SL.

The case was initiated under the Bilateral Investment Treaty (BIT) between the Dominican Republic and Spain and was administered by the Permanent Court of Arbitration. The claim filed by Recalvi alleged breach of contract by the Dominican state-owned Metropolitan Office of Bus Services (OMSA).

In a decision issued on September 20, 2021, the Tribunal dismissed Recalvi’s claims upholding each of the jurisdictional objections filed by the Dominican Republic. The Tribunal further found that Recalvi SL committed an abuse of process by submitting a pre-existing and foreseeable dispute to arbitration under the BIT, thus also upholding the Dominican Republic’s objection based on treaty shopping.

Recalvi was also ordered to pay the Dominican Republic US$789,633.70 to cover the legal cost of the proceedings.

The Linklaters team was led by partners Christian Albanesi in Washington, D.C. and Borja Fernández de Trocóniz, alongside managing associate Marta De Cara and associate Javier García-Bermejo in Madrid.