Meysan and Skadden Arps have achieved a remarkable victory for Agility by obtaining a rare annulment of a previous judgment issued by the International Centre for the Settlement of Investment Disputes (ICSID). This annulment marks a significant milestone as only 5% of annulment applications have been granted in the history of ICSID.
Agility, a prominent player in the investment landscape, filed claims with ICSID three years ago, alleging that Iraqi officials had expropriated over $380 million invested by Agility in an Iraqi telecom company, Korek Telecom. However, the original arbitration tribunal ruled against Agility, prompting the firm to challenge the decision.
On Thursday, 8th February 2024, an annulment committee of ICSID upheld Agility’s challenge and partially annulled the previous judgment. The committee concurred with Agility’s assertion that the original tribunal had failed to scrutinize Iraq’s actions adequately, thereby violating the protections afforded to Agility under the bilateral investment treaty (BIT) between Kuwait and Iraq.
The annulment paves the way for Agility to re-file its claims before a newly constituted arbitral tribunal at ICSID. This tribunal will have the authority to adjudicate Agility’s claims relating to Iraq’s expropriation of its investment, failure to provide fair and equitable treatment, and failure to ensure full protection and security as required by the BIT.
Following the annulment decision, Agility expressed gratitude to the annulment committee for rectifying what they deemed a clear miscarriage of justice.
The Meysan team included partners Bader El-Jeaan (pictured left) and Abdulwahab Sadeq (pictured right), while the Skadden team included partners Timothy Nelson and Daniel Gal.