27 avr. 2018

EU against ICSID (2): Achmea v Slovakia, UNCITRAL, arbitration, investors' rights, ISDR, TTIP, CETA - Stanislovas Tomas

In my last video I have spoken about the fight between the EU and the ICSID in the Micula case. It is a case where the ICSID arbitral tribunal has awarded damages of € 178 million to the Swedish investors for the breach of their rights by the European Commission. In that video I have predicted that the European Court of Justice would take the position that the Micula brothers should be paid nothing, that the ECJ would prohibit the execution of the award. As always, I was right. 

The Micula execution case is still under consideration, however we have got the Achmea case.

In the Achmea case, the arbitral tribunal established under the UNCITRAL rules has awarded a compensation of € 22.1 million for the breaches of the Dutch investors rights by Slovakia. In this case, the Slovakian Government behaved in a very stupid way: they prohibited distribution of profits generated by private sickness insurance companies. I think that this is a very stupid approach. If a legal business generates profit, why should you prevent it from distributing profits? So this business has got € 22 million from the arbitral tribunal. What does happen next?

The German Federal Court of Justice decides to transfer the question whether the award is executable to the European Court of Justice, and as I have predicted this is very bad for the investors. Foreign investors do not trust the European courts, and they are right.

There are two important positions that are present in the Achmea judgment: the position of the German Federal Court of Justice and the one of the ECJ itself.

The German Federal Court of Justice supports the execution of the award, and makes two very important statements:
1)   The EU law is not applicable to the Achmea case, because it is decided by the arbitral tribunal with no references to the Union law. The Union law is not necessary in this case. The Union law does not regulate this kind of issues.
2)   If the execution would be contrary to the Union law, if it went against the policy of the European Commission, then the German courts would annul the execution.

This is a moderate approach of which I was talking in my last video. However, the European Commission takes the radical approach or even a Jihadist approach, and the ECJ ratifies this radical position as its own: the Luxembourg court prohibits all the intra-EU BITs with their arbitration remedies.

Now let’s take a look at the arguments of the ECJ:

It agrees that the Union law is not necessary for solving the Achmea dispute, however the ECJ says that the issue of application might raise in other cases, and then the arbitral tribunal would consider, apply and interpret the Union law in those other cases (§§ 42 and 58). They do not talk about Micula, but we know that they imply Micula, and the breaches of investors rights by the European Commission.

Then, the ECJ explains everything it thinks about international arbitration in the same Jihadist manner: it says that the arbitral tribunals are not national courts of Member States (§ 45), they are not common courts of Member States like the Benelux Court of Justice (§ 47), and they are created in order to escape from the ordinary judicial system (§§ 46 and 55). Well, this is true, because the investors do not trust the European courts. This is normal. Investors want to have independent courts. Therefore, they try to escape from the European courts. 

Finally, the ECJ says that in principle it could authorise the EU to transfer a part of its competence to the ICSID and UNCITRAL tribunals, but in the case of BITs the competence is transferred by the individual Member States themselves.

So, as I have predicted, the ECJ denounces the intra-EU BITs in a retrospective manner.

Why do I call this approach Jihadist? First of all, the same argumentation is applicable not only to the intra-EU BITs, but to all BITs concluded by the Member States all around the world. Look: the EU breaches the rights of Russian investors in the same manner as it breaches the rights of Dutch investors. It means that the same issue of interpreting the Union law may raise in extra-EU arbitration. And then – yes – almost all extra-EU BITs are concluded by individual Member States.

Second, if the EU is allowed to invoke its internal law to invalidate the arbitration awards, then Russia also has the same right. This is a collapse of the whole arbitration system.

As an Islamic fundamentalist, the European Commission and the ECJ decide to explode all the system. However, I predict that they will fail. 

22 avr. 2018

EU against ICSID, UNCITRAL, arbitration, investors' rights, ISDR, TTIP, CETA, ECT: Micula v Romania - Stanislovas Tomas

The most exciting business law case that I have seen in the recent years is without doubt Micula v Romania. This is the case where the ICSID arbitration tribunal has, in fact, decided that the European Union law had breached the investors’ right to a fair and equitable treatment. This case makes me laugh, because it sets aside a huge segment of the European Commission arrogance. The case is quite unknown. For instance, none of the LSE professors of law has ever heard about this.

After observing the success of the tax paradise in the City of London, the Government of Romania decided to create a tax paradise like the British one in one of the poorest regions of the country. No tax attracts investment and creates prosperity – this was the logic of Romania, and this is actually a result of the City of London.

Some ethnic Romanians from Sweden started their investment in the Ştei Nucet region. The European Union reacted with the Union Common Position requiring to repeal the tax policy, since a measure providing tax benefits for particular parts of Romania only should be considered as a State aid distorting competition. The common position does not explain why this is prohibited in Romania, but this is not prohibited in the City of London. 

Romania agreed, and the Micula brothers sued Romania before the ICSID arbitration tribunal under the BIT between Romania and Sweden. In 2013, the Arbitration Tribunal awarded the Micula brothers a compensation of € 178 million. 

The Arbitration Tribunal argued that the actions of Romania created legitimate expectations for the investors that the tax policy would not be repealed. If you change your mind after the investment has already started, the fair and equitable treatment principle requires paying damages. 

The Arbitration Tribunal states that there is no contradiction between the fair and equitable treatment principles under the BIT and the Europe Treaty on preparation of Romania to become an EU member state, since both Romania and Sweden signed those treaties in full understanding of their content. This attitude is required by the Vienna Convention on the Law of Treaties.

An amazing thing happens when the award come to the Bucharest Tribunal for execution. There are three things that I’d never expect from a Romanian court: 1) the Bucharest Tribunal refuses to stay the execution, because – this is very important – the ICSID ad hoc committee has refused to do so. 2) The Bucharest Tribunal rejects the proposal of the European Commission to make a preliminary reference to the CJEU. The EC wants to transfer the case to the CJEU  because this court is tool to implement the official policy of the EU. The investors have zero chances to win over there. What does the Bucharest Tribunal do? It rejects the proposal of the EC. 3) The Bucharest Tribunal rejects the main action by Romania. This is amazing.

Then the case goes to the Bucharest Court of Appeal, which stays the execution. Nevertheless, – and this is also amazing – the Romanian Government opens a bank account in the name of the investors, and transfers them the money. The account is blocked until the end of the litigation, but the Romanian Government at least is able to declare that the award is executed. This is a kind of a temporary compromise, and this is also a strike of the Romanian Government against the EC.

After this, the EC issued a decision prohibiting Romania to execute the award. This decision is interesting in two respects: the position of Romania, and that of the EC. 1) Romania argues that the Romanian Constitution prohibits influencing judges, and the national constitution has higher power than the Union law. This is a very brave argument, because it challenges the case law of the ECJ. The next Romanian argument is even braver: the award shall be executed until it has not been determined at the ICSID level whether the ICSID Concention of the Union law should take precedence. At this point, it already clear that the ICSID ad hoc committee will argue that international arbitration is higher than the Union law, and it is clear that the ECJ will enter a contrary judgment. 

The approach of the European Commission is radical. It states that the intra-EU BITs are not valid, since they are contrary to the Union law, and the Union law provides that it is higher than any other international obligations of Member States. The EC might take a more moderate approach in saying that the intra-BITs are invalid only to the extent of their contradiction with the Union law, but this is not the case. So the EC chooses to provoke a direct conflict with the international arbitration system instead of finding a verbal formula allowing parties to keep honor. 

The EC explains that the award provides a selective advantage to Micula brothers, and not to other investors operating in the region. It is the same as in a situation where you have black and white segregation. Blacks do not have the right to use the same bus as white people. One of those blacks goes to the tribunal, and the tribunal enters a judgment saying that this is against fair and equitable treatment and this particular black person should be paid a compensation, and then the European Commission replies that this judgment shall not be executed because it privileges one black over thousands of other black people. This is the same.

The investors lodged an appeal with the CJEU  On one hand, this is a logical remedy. On the other hand, transferring the case to the CJEU  because usually it supports the initiatives of the EC in a very enthusiastic manner. 

As it might be foreseen the ICSID ad hoc committee dismissed the application for annulment by Romania, and upheld the award of the arbitration tribunal. The ad hoc committee pointed that the arbitration tribunal had in fact applied the Europe Treaty to the full extent that had been necessary. 

The attempts to execute the award continue before the UK courts, however the High Court of Justice stays the execution until the end of the proceedings before the ECJ. The High Court of Justice makes reference to the “principle of sincere cooperation” of the MS courts with the European Commission. This is not the best sign. It will be interesting to see how the High Court of Justice will continue after the departure of the UK from the EU.

The litigation over execution also continues in the USA.

I don’t believe there is much chance to win this case before the ECJ. The European Court of Justice is consistently resisting the attempts to create a higher court than itself: the Strasbourg judges have prohibited to submit the European Union to the authority of the European Court of Human Rights and to that of the European and Community Patent Court (CJEU opinion 1/09).

10 avr. 2018

Genius John Nash, girls and sex - Stanislovas Tomas

Very stupid LSE professors about investors' rights (TTIP, ICSID, UNCITRAL, BIT, arbitration) - Stanislovas Tomas

Teisė į neteisėtai pastatytą namą – EŽTT – advokatas prof. Stanislovas Tomas

Kalinių (suimtųjų) teisė į 7 kv. m. kameroje – EŽTT – advokatas Stanislovas Tomas

Pareigūnų parodymai negali būti vienintelis įrodymas – EŽTT – advokatas Stanislovas Tomas

Įrodymų našta, kai žmogų sumušė pareigūnai – advokatas Stanislovas Tomas

Территориальная дискриминация в офшорном налогооблажении - Stanislovas Tomas

Droit à la nationalité monégasque selon les Nations unies - Stanislovas Tomas

Налоги на Сарке - бизнес и офшор - Stanislovas Tomas

Как выиграть дело в ЕСПЧ? Европейский суд по правам человека - адвокат - Stanislovas Tomas

Ой ти Галю, Галю молодая (Їхали козаки) - КОМЕНТАР АДВОКАТА - Stanislovas Tomas

Teisė į liudytojų apklausą – Europos žmogaus teisių teismas - Stanislovas Tomas

Šauktinių kariuomenė yra uždrausta – Europos žmogaus teisių teismas - Stanislovas Tomas

Advokatų klaidos – Europos žmogaus teisių teismas - Stanislovas Tomas

Teisė atsisakyti savo parodymų - Europos žmogaus teisių teismas - advokatas Stanislovas Tomas

Lietuvoje įteisintos homoseksualų santuokos, advokatas, Europos žmogaus teisių teismas - Stanislovas Tomas

Lawyer speaks 15 languages. Адвокат говорит на 15 языках. Advokatas šneka 15 kalbų. Polyglot - Stanislovas Tomas

欧洲政治庇护。对联合国的投诉。 - Stanislovas Tomas

Европейският съд по правата на човека е затворен - Stanislovas Tomas

Tри роки оскаржити в ООН - Stanislovas Tomas

Ўцякаць. Палітычны прытулак у ЕС - Stanislovas Tomas

Eiropas Cilvēktiesību tiesa ir slēgta - Stanislovas Tomas

Het Europees Hof voor de Rechten van de Mens is gesloten - Stanislovas Tomas

O Tribunal Europeu dos Direitos do Homem está encerrado

El Tribunal Europeo de Derechos Humanos está cerrado - Stanislovas Tomas

Der Europäische Gerichtshof für Menschenrechte ist geschlossen - Stanislovas Tomas

Al Fatiha by Prof. Dr. Stanislovas Tomas

La Cour européenne des droits de l'Homme est fermée - Stanislovas Tomas

Apie janutienės isterijos priepuolį - Stanislovas Tomas

ЕСПЧ или ООН? Європейський суд з прав людини або Організація Об'єднаних Націй? - Stanislovas Tomas

Обжаловать в ООН или/и убежать в ЕС - Stanislovas Tomas

Apel·lació a les Nacions Unides - Stanislovas Tomas

Unicycling in the European Parliament - Stanislovas Tomas

Genius and insanity DNA, 23andme, rs6994992TT, rs1800955CT - Stanislovas Tomas

Avoiding mistakes of the impeached President of Lithuania in litigation - Stanislovas Tomas

Co robić jeśli twoja skarga odrzucona w Strasburgu (ETPC)? Złożyć skargę do ONZ - Stanislovas Tomas

За 6 часов выиграть вопрос против своего Правительства в ООН. Адвокат Станисловас Томас

Per 6 valandas laimėjau 1–jį bylos etapą prieš Lietuvą Jungtinėse Tautose - Stanislovas Tomas

Sark & Guernsey: offshore incorporation differences - Stanislovas Tomas

Sark offshore company: liberate your business creativity - Stanislovas Tomas

Sark offshore business centre (Guernsey) - Stanislovas Tomas

Prof. Stanislovas TOMAS laimėjo bylą prieš 15min šmeižtą - Stanislovas Tomas

28 févr. 2018

European Court of Human Rights defends "honour" of a Nazi Minister - Stanislovas Tomas

Yesterday, the European Court of Human Rights rejected the complaint about the prohibition of the book “Ship of Idiots” by Lithuania. The book is prohibited, since the author Vytautas Petkevicius writes that the Nazi Government minister Vytautas Žemkalnis-Landsbergis was a “friend of Hitler”, and co-operated with the KGB by the end of World War II (case Petkeviciute v Lithuania). The Nazi Minister is the father of Mr Vytautas Landsbergis who is a former President of Lithuania.

Lithuania is the last country in the EU, which denies holocaust.

The statement that Vytautas Žemkalnis-Landsbergis was a “friend of Hitler” is based on the fact that he indeed was a Minister of Communal Economy at the marionette Lithuanian Nazi Government formed by Nazi Germany in the occupied Lithuania in 1941. The statement that the Nazi Minister started to co-operate with the Soviet KGB by the end of the war is based on the fact that he was allowed to live in the Soviet Union after the end of the war, and he even built a successful career under the Soviet rule.

In its judgment, the European Court of Human Rights denies that the respective Government was indeed a Nazi one. This is a factual mistake. Therefore, the family of the writer will lodge an appeal. Professor Stanislovas Tomas, Russian foreign lawyer practicing in the Channel Islands, will represent the interests of the writer.

On 25/06/1941, the Lithuanian Nazi Government issued “The Word to the Nation” stating: “We assess the Eastern march of the unstoppable German army with a particular gratefulness. […] This project of Führer Adolf Hitler of the German Nation, this march of the brave army inspired by National Socialism has huge importance in destruction of the barbarian, anti-cultural and anti-human wave, which dropped 200 million people down into poverty. […] This worldwide mission of Hitler and its meaning may be very well understood, positively assessed and sincerely supported.

The Lithuanian Nazi Government issued the Declaration on Economic and Social Affairs. Its § 3 provides that ethnic Jews may not have any private property in Lithuania. On 26/06/1941, the Lithuanian Nazi Government addressed the German general von Pohl with a request to intensify “clearing” Lithuania from the “Jewish gangs”. On 30/06/1941, the Lithuanian Nazi Government issued the decision to create the Jewish Concentration Camp. The administration of the concentration camp and the ghettos was under the Ministry of Communal Economy headed by Minister Vytautas Žemkalnis-Landsbergis.

On 01/08/1941, the Lithuanian Nazi Government issued the Provisions on the Jewish Situation stating the following: “The Cabinet of Ministers, having regard to the fact that for centuries the Jews were exploiting the Lithuanian nation economically, stomping us morally, and recently the Jews have largely extended their fight against Lithuanian independence and the Lithuanian nation under the Bolshevik mantle, seeking to stop the harmful Jewish activity and to defend the Lithuanian nation from their harmful influence, legislates the current Rules”.

101 996 Jews were executed during the first six months of the Nazi occupation in Lithuania.

The Lithuanian Nazi Government also closed all theatres in the Polish language and started to treat ethnic Poles as enemies.

The current Lithuanian Government under President Dalia Grybauskaite supported by the European Court of Human Rights (the Lithuanian judge Egidijus Kuris in particular) denies that the Lithuanian Nazi Government of 1941 was Nazi, and they also deny holocaust.

Европейский суд по правам человека защитил "честь" нацистского министра - Stanislovas Tomas

Вчера Европейский суд по правам человека (ЕСПЧ) отклонил жалобу о запрете книги « Корабль дураков » в Литве. Книга запрещена, потому что автор Витаутас Пяткявичюс написал, что нацистский министр Витаутас Жямкальнис-Ландсбергис был « другом Гитлера », а в конце Второй мировой войны начал сотрудничать с КГБ (дело Пяткявичюте против Литвы). Нацистский министр является отцом Президента Литвы Витаутаса Ландсбергиса.

Литва – это последнее государство Европейского Союза, которое отрицает нацистские преступления.

Утверждение писателя о том, что Витаутас Жямкальнис-Ландсбергис был « другом Гитлера » основывается на том, что он на самом деле был министром коммунального хозяйства в марионетном Нацистском Правительстве Литвы, сформированном немецкими войсками в 1941 г. Утверждение о том, что Витаутас Жямкальнис-Ландсбергис сотрудничал с КГБ в самом конце войны основано на факте, что после победы Советского Союза в войне ему было разрешено жить в СССР и, более того, сделать очень успешную карьеру – он стал главным архитектором города Каунас.

В своем решении ЕСПЧ отрицает, что соответствующее литовское правительство было нацистским. Это ошибка. Семья писателя приняла решении подать апелляцию. Интересы автора будет представлять адвокат профессор Станисловас Томас.

25 июня 1941 г. Нацистское Правительство Литвы публикует «Слово к Нации», в котором говорится: «Мы оцениваем Восточный марш неостановимой немецкой армии с особенной благодарностью. Этот проект фюрера немецкой нации Адольфа Гитлера, этот марш смелой армии, воодушевленной национал-социализмом, имеет огромное значение для уничтожения варварской, противокультурной, противочеловеческой волны, которая повергла 200 миллионов человек в бедность. Эту гитлеровскую миссию мирового масштаба и ее значение очень легко понять – она должна быть позитивно оценена и искренне поддержана».

Нацистское Правительство Литвы принимает Декларацию о хозяйственных и социальных делах. В ее 3-ем пункте говорится, что евреи и русские не имеют права обладать частной собственностью в Литве. Скоро к ним присоединят и поляков, будут закрыты все польскоязычные театры.

26 июня Нацистское Правительство Литвы обращается к генералу фон Поль с прошением усилить «отчистку» Литвы от «еврейских банд». 30 июня Нацистское Правительство Литвы принимает решение выделить деньги на создание Еврейского концлагеря. Администрирование Еврейского концлагеря и гетто передается Министерству коммунального хозяйства, которым руководит Витаутас Жямкяльнис-Ландсбергис.

1 августа 1941 г Нацистское Правительство Литвы принимает «Положение о евреях», в котором говорится: «Кабинет министров, принимая во внимание, что целыми столетиями евреи экономически эксплуатировали литовскую нацию, топтали ее морально, а в последнее время под покровом большевизма широчайшим образом развили борьбу против литовской независимости и против литовской нации, имея целью остановить вредную еврейскую деятельность и защитить литовскую нацию от их пагубного влияния – принимает настоящие правила

Только в первые шесть месяцев нацистской оккупации было расстреляно 101 996 евреев.

Сегодняшнее Правительство Литвы при Президенте Дале Грибаускайте сейчас уже, к сожалению, с поддержкой ЕСПЧ (его литовский судья Эгидиюс Курис в частности) отрицает, что марионетное Правительство Литвы 1941 года было нацистским, а также отрицает и холокост. Отрицание холокоста в Австрии, родине Адольфа Гитлера, наказывается тюремным заключением до 20 лет (ст. 3г Закона о запрете национал-социализма).