NEWS

2003-05-18

Multi-million bilateral investment dispute finally resolved by Swedish Court

The dispute involved a Czech television licence granted to CME in 1993 to establish the first private nation-wide television station in the Czech Republic, “TV Novaä, which quickly became the most popular television station. As a result of various activities by the Czech authorities, CME was deprived of the right to use the licence destroying its investment in TV Nova.

In the Svea Court, the Czech Republic challenged the arbitral award issued in Stockholm, holding the Czech Republic liable for CME’s loss. The basis for the liability of the Republic was the bilateral investment treaty between the Netherlands and the Czech Republic, with the objective of encouraging and protecting private investments between the two countries.

The Svea Court rejected the challenge action by the Czech Republic and also established that there were no grounds for granting leave to appeal to the Supreme Court.

Hans Bagner, a partner in the International Litigation Department of Vinge and lead counsel for CME said:

“The Svea Court’s handling of the case, and not least its express emphasis of the final and binding character of an arbitration award, and the fact that the Court has upheld the principle that challenges shall only be tried in one instance, will contribute to Stockholm and Sweden retaining and strengthening its position as a suitable place for international arbitral proceedings."

Hans Bagner was assisted by his partners Robert Romlöv and Paulo Fohlin, and the associates Mattias Rosengren, Klara Håstad, Fabian Ekeblad and Thorbjörn Johansson.

Vinge was assisted by Debevoise & Plimpton, which represented CME in the arbitral proceedings.

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