LONDON (Reuters) -Spain on Tuesday lost an appeal in its bid to claim immunity in a London court in a multimillion-euro case over cuts to renewable energy incentives.
Two investors, Infrastructure Services Luxembourg and Energia Termosolar, took Spain to arbitration under the Energy Charter Treaty 10 years ago for withdrawing subsidies for renewable energy.
The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) awarded Infrastructure Services Luxembourg and Energia Termosolar 101 million euros ($109 million).
The investors’ award was later registered at London’s High Court, which last year refused Spain’s attempt to overturn the award on the grounds it had sovereign immunity.
Spain challenged that decision at the Court of Appeal at a hearing in June, at which lawyers representing the investors said in court filings that their 101 million euro award was “one of 25 such awards against Spain, which have not been paid”.
The Court of Appeal dismissed Spain’s appeal, with Judge Stephen Phillips saying in a written ruling that states that have signed up to the ICSID convention cannot oppose the registration of ICSID awards against them on the grounds of state immunity.
Spain’s appeal was heard at the same time as an appeal brought by Zimbabwe in a separate case worth up to $125 million concerning the alleged expropriation of land.
Zimbabwe’s appeal against the rejection of its claim to state immunity was also dismissed, though the case was sent back to the High Court to determine Zimbabwe’s other grounds for overturning the award.
(Reporting by Sam Tobin; Editing by Sarah Young and Mark Potter)
