Disputes related to environmental matters are frequent in the context of investor-state arbitration and are likely to increase in years to come. Claims vary from alleged breaches by host states because of environmental permit denials to counterclaims from states for alleged breaches by investors of their environmental obligations.
Starting from November 1st 2019, Poland has implemented new rules for making payments to VAT taxpayers under which in particular cases the amount of VAT must be paid to the separate bank account of the supplier (so called split-payment). The implementation came as a continuation of the sealing process of VAT system in Poland and replaced reverse charge method of settling VAT in the domestic transactions.
In this month’s newsletter we look at Arbitration Award Default Insurance (AADI) and round up the main international arbitration news by geographic area. In institutional news the headline item is that the three main Spanish arbitral institutions have merged to form 'Centro Internacional de Arbitraje de Madrid' (CIAM).
On September 10, the Advocate General (AG) issued his opinion on a preliminary ruling to be rendered by the Court of Justice of the European Union (CJEU) regarding a lawsuit in Spain over the validity, under the European directive on unfair terms in consumer contracts (Directive 93/13), of a contractual clause referencing a local interest rate benchmark in floating rate residential mortgage loans. The press has regarded the opinion as unfavorable to the banks. If upheld by the CJEU, it could mark a turning point in the underlying lawsuits. A final negative outcome could provoke massive losses for a number of Spanish banks with the possibility to accelerate a wave of domestic and European bank mergers.
A no deal Brexit could prompt legal action by the European Union against the UK to claim payment of the financial obligations it assumed before its exit. This massive lawsuit, over a sum possibly in the region of 50 billion euros, could have extremely serious implications for the UK as a sovereign state.