##  [International Arbitration Newsletter - December 2019 | Regional Overview: Asia Pacific](/en_GB/new/international-arbitration-newsletter-december-2019-regional-overview-asia-pacific) 

# International Arbitration Newsletter - December 2019 | Regional Overview: Asia Pacific





12 / 19 / 2019





[VIEW INTERNATIONAL ARBITRATION NEWSLETTER - DECEMBER 2019](https://www.garrigues.com/en_GB/new/international-arbitration-newsletter-december-2019)

















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**The most relevant Asia Pacific updates from the global International Arbitration and ADR practice group at Garrigues.**





### **China**

**Chinese manufacturers withdraw UNCITRAL claim against Greece**

Two Chinese manufacturers of modules for solar plants, **Wuxi T. Hertz Technologies Co. Ltd.** and **Jetion Solar Co. Ltd**. (the **Solar Investors**) have withdrawn their UNCITRAL claim filed in May 2019 against **Greece** in respect of the construction of a photovoltaic plant valued EUR 204 million, in accordance with the 1992 bilateral investment treaty between China and Greece. The withdrawal was completed without any settlement agreement.

In 2012 a solar photovoltaic plant project located in northern Greece of **BRITE Hellas AE**, a Greek subsidiary of the Solar Investors, was entitled to “fast track” licensing procedure with the qualification of “strategic project” granted by Greece government. In May 2019 the Solar Investors filed a notice of arbitration against Greece claiming compensation for expropriation of the solar power plant, alleging that the project was confronted with obstacles and failed to be initiated.

### Japan

**Japanese drug maker faces AAA biotech claim**

US biotech company **Seattle Genetics** has filed a claim before the American Arbitration Association (**AAA**) against Japanese drug maker, **Daiichi Sankyo.**

The claim relates to the ownership of the certain antibody drug conjugates (**ADC**) technology for the delivery of targeted chemotherapy to cancer cells, which Daiichi Sankyo is using in a drug candidate for the treatment of breast cancer. Inearly November thisyear, Daiichi Sankyo filed a complaint in Delaware alleging Seattle Genetics of wrongfully attempting to usurpits rights over a quantity of patent applications in respect of ADC technology.

Seattle Genetics claims that under a 2008 collaboration agreement between both parties, the ownership of the ADC technology was assigned to Seattle Genetics. Also, any disputes arising therefrom shall be settled in arbitration in Seattle, Washington, which means the declaratory judgment in Delaware court that Daiichi Sankyo sought for can be deemed as circumventing the dispute resolution provisions in the agreement.

Daiichi Sankyo alleges that the 2008 collaboration agreement was terminated in 2015 since the research based on the agreement was limited to the development of particular ADCs using a cytotoxins developed by Seattle Genetics and an antibody developed by Daiichi Sankyo, which did not result in discovery of any clinical drug candidate. Furthermore, Daiichi Sankyo accuses Seattle Genetics of “attempted misappropriation” and has applied for a declaration of its ownership rights before the Delaware court, based on the fact that Seattle Genetics began demanding assignments for patents and patent applications from August of this year in accordance with the application of ADC technology for “any drug” stipulated in the agreement.

### **Malaysa**

**London appeal court allows challenge of LCIA award by Malaysian wealth fund**

The Court of Appeal in London has allowed an application to set aside an allegedly fraudulent US$5.8 billion settlement of an LCIA arbitration filed by Malaysian sovereign wealth fund **1MDB** against Abu Dhabi government-owned entity **Abu Dhabi’s International Petroleum Investment Company (IPIC)**.

The Court of Appeal also granted 1MDB an injunction restraining IPIC from pursuing two new LCIA arbitrations against 1MDB filed in 2018 after the set-aside proceedings came to light.

The dispute became subject to a scandal following allegations that former prime minister Najib Razak conspired to embezzle US$4.5 billion in funds from the sovereign wealth fund.

### **Philippines**

**Philippines files criminal charges after losing water utilities award**

**Philippines** has filed of criminal charges against the two water utilities **Manila Water** and **Maynilad Water Services** after one was awarded US$145 million for lost revenues by a tribunal at the Permanent Court of Arbitration.

According to the state, the underlying contracts are contrary to public policy and public interest and onerous and disadvantageous for consumers, demanding they be replaced with new agreements.

The order follows an announcement by Manila Water on 29 November 2019 that a PCA tribunal had awarded it US$145 million for revenues dating back to 2015 that wereowed under its utility contract with the Philippines.

The water utility company filed the claim over the refusal of a government agency, the **Metropolitan Waterworks and Sewerage System (MWSS)**, to implement certain water tariff increases. Manila Water said it was also awarded all its administrative fees and 85% of its other costs.









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