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King & Spalding Obtains $172 Million Arbitration Award for Sempra Energy
| Source: King & Spalding
HOUSTON, TX--(Marketwire - October 2, 2007) - King & Spalding, a leading international law
firm, announced today that its international arbitration team has earned a
key victory for Sempra Energy in the company's claim against the government
of Argentina. King & Spalding won $172 million for its client, making this
award one of the five largest ever granted by the International Centre for
Settlement of Investment Disputes (ICSID), an organization of the World
Bank Group.
The dispute arose from the passage of Argentina's so-called "Emergency Law"
in January 2002, during the height of Argentina's 2001-2002 economic
crisis. The law "pesified" (i.e., converted from U.S. dollars to Argentine
pesos) and froze all public utility tariffs, including those of Sempra
Energy's interests in two gas distribution companies, Camuzzi Gas del Sur
S.A. (CGS) and Camuzzi Gas Pampeana S.A. (CGP). The effect of these
measures severally affected both CGS and CGP. Sempra Energy also claimed
millions of dollars in unpaid subsidies for the distribution of natural
gas.
Sempra Energy claimed that the "Emergency Law" measures and the failure to
timely pay the subsidies violated the terms of CGS and CGP's licenses and
Argentina's obligations to Sempra Energy under the bilateral investment
treaty (BIT) between the United States and Argentina. Argentina defended
the measures as justified on the basis of the economic crisis the country
faced. The ICSID tribunal accepted Sempra Energy's claim and rejected
Argentina's defenses, finding that Argentina's measures violated the
provisions in the BIT guaranteeing fair and equitable treatment and the
observation of all obligations entered into with regard to Sempra Energy's
investment in CGS and CGP.
On September 28, 2007, ICSID awarded $172 million in compensation,
including pre-award interest, to Sempra Energy. This award brings to more
than $500 million the total amount awarded to firm clients with claims
against Argentina.
The Houston-based King & Spalding team representing Sempra Energy was led
by partners R. Doak Bishop and Craig S. Miles, who were assisted by
associates Roberto J. Aguirre Luzi, Wade M. Coriell and Martin F. Gusy.
King & Spalding has one of the leading international arbitration practices
in the world, specializing in oil and gas and energy disputes, foreign
investment disputes against governments and disputes involving Latin
American projects. American Lawyer's Focus Europe survey in June 2007
ranked King & Spalding second in the world in the number of high-stakes
international arbitrations and first overall in investment treaty
arbitrations. Lawyers in the firm's international arbitration group have
represented major U.S. and foreign companies as well as foreign state-owned
companies in arbitrated disputes ranging from one million dollars to more
than one billion dollars.
About King & Spalding
King & Spalding is an international law firm with more than 800 lawyers in
Atlanta, Charlotte, Dubai, Frankfurt, Houston, London, New York, Riyadh
(affiliated office) and Washington, D.C. The firm represents half of the
Fortune 100 and in a Corporate Counsel survey in September 2007 was among
the top firms representing Fortune 250 companies. For additional
information, visit www.kslaw.com.