Eiser Infrastructure Ltd v Kingdom of Spain

• Jurisdiction: Australia Federal only
• Judge: STEWART J
• Judgment Date: 24 February 2020
• Neutral Citation: [2020] FCA 157
• Court: Federal Court
• Date: 24 February 2020

FEDERAL COURT OF AUSTRALIA

Eiser Infrastructure Ltd v Kingdom of Spain [2020] FCA 157

File numbers:	NSD 601 of 2019 NSD 602 of 2019
Judge:	STEWART J
Date of judgment:	24 February 2020
Catchwords:	ARBITRATION – international arbitration – applications for recognition and enforcement of awards of the International Centre for Settlement of Investment Disputes (ICSID) under s 35(4) of the International Arbitration Act 1974 (Cth) ; PRIVATE INTERNATIONAL LAW – foreign state immunity – where foreign state respondent asserts sovereign immunity – interaction between s 9 of the Foreign States Immunities Act 1985 (Cth) and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the Investment Convention) which is given the force of law by s 32 of the Arbitration Act – where s 9 of the Immunities Act provides that a foreign state is immune from the jurisdiction of the courts of Australia in a proceeding – where Art 54 of the Investment Convention provides that each Contracting State shall recognise an award rendered pursuant to the Investment Convention as binding and enforce the pecuniary obligations imposed by that award as if it were a final judgment of a court of that state – whether the apparent inconsistency between Art 54 of the Investment Convention and s 9 of the Immunities Act can be resolved – whether submission to jurisdiction under s 10 of the Immunities Act ; PRIVATE INTERNATIONAL LAW – foreign state immunity – interpretation of the Investment Convention – whether the Investment Convention excludes any claim for foreign state immunity in proceedings for the recognition and enforcement of an award – distinction between recognition and enforcement of award as if it were a final judgment of a court under Art 54(1) and execution of an award in Art 54(3) of the Investment Convention – where Art 55 provides that nothing in Art 54 shall be construed as derogating from the law in force in relation to immunity from execution ; STATUTORY INTERPRETATION – public international law – Vienna Convention on the Law of Treaties – construction of the Investment Convention – reconciling the English, French and Spanish authentic texts
Legislation:	Acts Interpretation Act 1901 (Cth) s 13 Explanatory Memorandum, Foreign States Immunities Bill 1985 (Cth) Explanatory Memorandum, ICSID Implementation Bill 1990 (Cth) Federal Court of Australia Act 1976 (Cth) s 43 Foreign Judgments Act 1991 (Cth) Foreign States Immunities Act 1985 (Cth) Pts II, IV; ss 3, 7, 9, 10, 17, 30, 31, 32, 33, 34, 35 ICSID Implementation Act 1990 (Cth) International Arbitration Act 1974 (Cth) Pt IV; ss 2D, 8, 31, 32, 34, 35 ; Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, opened for signature 10 December 1984, 1465 UNTS 85 (entered into force 26 June 1987) Convention on the Settlement of Investment Disputes between States and Nationals of Other States, opened for signature 18 March 1965, 575 UNTS 159 (entered into force 14 October 1966) Arts 26, 27, 49, 50, 51, 52, 53, 54, 55 The Energy Charter Treaty, opened for signature 17 December 1994, 2080 UNTS 95 (entered into force 16 April 1998) Arts 1, 10, 26, 38, 39 Vienna Convention on the Law of Treaties, opened for signature 23 May 1969, 1155 UNTS 331, [1974] ATS 2 (entered into force 27 January 1980) Arts 31, 32, 33
Cases cited:	AED Oil Ltd v Puffin FPSO Ltd [2010] VSCA 37; 27 VR 22 Associated Electric and Gas Insurance Services Ltd v European Reinsurance Co of Zurich [2003] UKPC 11; [2003] 1 WLR 1041 Benvenuti & Bonfant v People’s Republic of the Congo, Cour d’appel, Paris (26 June 1981) 65 ILR 88 Blue Ridge Investments LLC v Republic of Argentina 735 F3d 72 (2d Cir 2013) Clarke v Fennoscandia Ltd [2007] UKHL 56; 2008 SC (HL) 122 Comandate Marine Corporation v Pan Australia Shipping Pty Ltd [2006] FCAFC 192; 157 FCR 45 Comptroller-General of Customs v Pharm-A-Care Laboratories Pty Ltd [2020] HCA 2 Ferdinands v Commissioner for Public Employment [2006] HCA 5; 225 CLR 130 Firebird Global Master Fund II Ltd v Republic of Nauru [2015] HCA 43; 258 CLR 31 Government of the Republic of Zimbabwe v Fick [2012] ZASCA 122 Government of the Republic of Zimbabwe v Fick [2013] ZACC 22; 2013 (5) SA 325 Infrastructure Services Luxembourg S.A.R.L v Kingdom of Spain [2019] FCA 1220 La Macchia v Minister for Primary Industries and Energy [1992] FCA 673; 110 ALR 201 Lahoud v The Democratic Republic of Congo [2017] FCA 982 Li v Zhou [2014] NSWCA 176; 87 NSWLR 20 Liberian Eastern Timber Corporation (LETCO) v The Government of the Republic of Liberia 650 FSupp 73 (SDNY 1986) Micula v Romania [2018] EWCA Civ 1801 Mobil Cerro Negro Ltd v Bolivarian Republic of Venezuela 863 F3d 96 (2d Cir 2017) Morrison v Peacock [2002] HCA 44; 210 CLR 274 Povey v Qantas Airways Ltd [2005] HCA 33; 216 ALR 427 PT Garuda Indonesia Ltd v ACCC [2012] HCA 33; 247 CLR 240 Republic of Ecuador v Occidental Exploration and Production Co [2005] EWCA Civ 1116; [2006] QB 432 Silk Bros Pty Ltd v State Electricity Commission (Vic) [1943] HCA 2; 67 CLR 1 Slovak Republic v Achmea BV [2018] 4 WLR 87 (ECJ) Société Ouest Africaine des Bétons Industriels (SOABI) v Senegal (1991) 30 ILM 1169 (Cour de Cassation) TCL Air Conditioner (Zhongshan) Co Ltd v Judges of the Federal Court of Australia [2013] HCA 5; 251 CLR 533 Traxys Europe SA v Balaji Coke Industry Pvt Ltd (No 2) [2012] FCA 276; 201 FCR 535 Tridon Australia Pty Ltd v ACD Tridon Inc [2004] NSWCA 146 Uganda Telecom Ltd v Hi-Tech Telecom Pty Ltd (No 2) [2011] FCA 206; 277 ALR 441 Undershaft (No 1) Ltd v Federal Commissioner of Taxation [2009] FCA 41; 175 FCR 150 Zhang v Zemin [2010] NSWCA 255; 79 NSWLR 513 ; Booysen H, “The Municipal Enforcement of Arbitration Awards against States in Terms of Arbitration Conventions, with Special Reference to the New York Convention – Does International Law Provide for a Municipal Law Concept of an Arbitrable Act of State?” (1986/87) 12 South African Yearbook of International Law 73 Briggs A, The Conflict of Laws (3rd ed, Oxford University Press, Clarendon Series, 2013) Broches A, “Awards Rendered Pursuant to the ICSID Convention: Binding Force, Finality, Recognition, Enforcement, Execution” (1987) 2 ICSID Review – Foreign Investment Law Journal 287 Buckley RP, “Now We Have Come to the ICSID Party: Are Its Awards Final and Enforceable” (1992) 14 Sydney Law Review 358 Chukwumerije O, “ICSID Arbitration and Sovereign Immunity” (1990) 19 Anglo-American Law Review 166 Collins, Lord Lawrence (ed), Dicey, Morris & Collins on The Conflict of Laws (15th ed, Sweet & Maxwell, 2012) Delaume GR, “Arbitration with Governments: Domestic v. International Awards” (1983) 17 The International Lawyer 687 Delaume GR, “Contractual Waivers of Sovereign Immunity: Some Practical Considerations” (1990) 5 ICSID Review – Foreign Investment Law Journal 230 Delaume GR, “ICSID Arbitration and the Courts” (1983) 77 American Journal of International Law 784 Delaume GR, “Judicial Decisions Related to Sovereign Immunity and Transactional Arbitration” (1987) 2 ICSID Review – Foreign Investment Law Journal 403 Fox H and Webb P, The Law of State...