Analysis of The UK Supreme Court Decision in Micula and Others V Romania

Abstract

On 19 February 2020 the UK Supreme Court in the case of Micula and others v Romania upheld 2013 ICSID tribunal award and lifted the stay on its enforcement. This case commentary provides a historical background of the 15-year long-running dispute between Romania State and Swedish Micula brothers, his co-investors and companies in order to understand the decision of UK Supreme Court. An attempt has been made to analyze the Sweden-Romania Bilateral Investment Treaty, 2013 the decision of ICSID tribunal, 2015 decision of EU Commission, 2019 judgment by the General Court of European Union (GCEU), 2019 decision of the US District Court. In this comment, the author also made an attempt to analyze the decision given in the Achmea v Slovakia case along with GCEU decision which creates a negative environment for the cross-border investors and has a wider ramification on Bilateral Investment Treaties (hereinafter BITs). This case comment also shows how the judgment of the UK Supreme Court welcomed by the EU-investors and creates a positive environment for them to invest in the European Union and creates an obligation for the English Court to recognize the ICSID Award. Further, the ruling had a wide implication in Investment treaty arbitration and recognition of ICSID ruling in other jurisdictions. Finally, the author concludes the judgment in a wider political context of Brexit, International Investment Arbitration, BITs and Achmea case.