6. Permanent Court of Arbitration (PCA)

Abstract

At the end of 2016, the PCA was acting as registry in seven inter-state arbitrations. Out of these, in the Arbitration between the Republic of Croatia and the public of Slovenia relating to territorial and maritime issues, a partial award was granted and in the South China Sea Arbitration (Republic of Philippines v People’s Republic of China), the arbitral tribunal rendered a final award. The arbitral tribunal resumed the hearing on 17 March. Croatia refused to make any representation as a result of its view that the PCA no longer had jurisdiction as it had terminated the 2009 Arbitration Agreement between the government of the Republic of Croatia and the government of the Republic of Slovenia (Arbitration Agreement) agreement because of the alleged material breach by Slovenia of Arbitration Agreement. The material breach related to a leak of confidential information regarding the arbitration tribunal deliberations. Slovenia, while acknowledging the situation, was of the view that the actions taken by the PCA and Slovenia to rectify the problem meant that Croatia was not entitled terminate the agreement. Slovenia appeared before the tribunal and argued that the tribunal has competence to determine the legal ramification of unilateral termination of the Arbitration Agreement and that it should complete its mandate by rendering an award.