2009 Annual Review - Latham & Watkins

Republic of EcuadorWinning Ways in International ArbitrationsContinuing its unbroken string of victories in international arbitrationsbefore the World Bank’s International Centre for Settlement ofInvestment Disputes, Latham & Watkins successfully defended theRepublic of Ecuador against a claim brought by Empresa Eléctriciadel Ecuador (EMELEC). EMELEC sought nearly US $2 billion indamages for an alleged violation by Ecuador of the US-Ecuadorbilateral investment treaty (BIT). EMELEC, a foreign investor thatheld a long-term electricity concession in Ecuador, alleged thatEcuador had expropriated the concession.EMELEC argued that its claim fell under the US-Ecuador BITbecause it was a US company, controlled through a complex series ofBahamian trusts. After the Latham team cross-examined EMELEC’switnesses, the tribunal concluded that EMELEC had failed toestablish that it was actually controlled by the trusts. EMELEC thushad not properly brought the claim under the BIT. The tribunaltherefore held that it lacked jurisdiction to hear the case anddismissed the claim with prejudice.PracticeInternational Dispute ResolutionOffice InvolvedEuropeLondon17 Latham & Watkins • 2009 Annual Review