Overview

On 23 May 2011, a majority of the UNCITRAL tribunal in HICEE B.V. v The Slovak Republic found that the applicable bilateral investment treaty between the Netherlands and Slovakia did not extend its protections to investments held through a locally incorporated intermediary company. The majority's decision highlights the need for international investors to ensure that their investments are covered by bilateral investment treaties that provide effective legal protection.

In this client alert, Latham & Watkins' litigation team outlines the background to the dispute, the majority's jurisdictional finding, Judge Brower's dissent and why the tribunal supported investment treaty structuring. Lastly, the alert outlines why ambiguous wording in investment protection treaties can lead to devastating consequences for foreign investors should they fail to structure their investments properly.

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