UK Supreme Court's Review of Czech Plasma Business Arbitration: Potential Impact on Investment Treaty Claims The UK Supreme Court is set to review an arbitration case involving a Czech plasma business, a decision that could significantly reshape the landscape of investment treaty claims. This landmark case may establish new precedents and influence future investor-state dispute resolutions, making it a critical development for stakeholders in international investment law. Stay informed as...
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The landscape of international arbitration is characterized by intricate cases that can have significant financial repercussions. The UK Supreme Court has agreed to review a controversial award concerning an investment treaty with the Czech Republic. This case involves a claim for US$750 million made by the founder of a now-defunct blood plasma company.
Key developments in international arbitration
The Supreme Court’s decision to hear this appeal on January 12, 2026, adds further complexity to the ongoing discussions regarding investment treaty disputes. The claim originates from the founder’s allegation that the Czech government failed to meet its obligations, resulting in considerable financial losses.
Impact of the ruling on investment treaties
This case is pivotal not only for the parties involved but also for the broader framework of investment treaties and their enforcement. A favorable ruling for the claimant could establish a precedent, reinforcing the rights of investors in similar situations.
Recent trends in legal hiring and firm developments
As the legal landscape evolves, so do the strategies of law firms. Notably, Alex Bevan, formerly co-head of international arbitration at A&O Shearman, has chosen to establish his independent practice in both London and the United Arab Emirates. This move reflects a growing trend among legal professionals seeking greater autonomy and the ability to tailor their services to client needs.
Moreover, Akin has strengthened its position in the Middle East by appointing Shane Jury as a partner to co-lead its disputes practice. Additionally, Alina Sartogo has joined the London office from White & Case, reflecting a competitive hiring landscape in significant legal markets.
Funding and disputes on the rise
Funding for arbitration claims is becoming increasingly essential for companies engaged in international disputes. A UK-based firm has recently secured financing for a substantial US$100 million claim against Ireland under the Energy Charter Treaty, concerning an undeveloped oil and gas field. This funding will enable the company to progress its case, underscoring the crucial role that financial support plays in international arbitration.
Continued legal challenges in the energy sector
A Canadian uranium mining company has once again initiated arbitration against Kazakhstan. This marks the third attempt following the UK courts’ reversal of two previous awards in favor of the company. This situation highlights the persistent challenges encountered in cross-border disputes and the complexities of differing legal jurisdictions.
Legal tensions in Eastern Europe
The conflict between Gazprom and Uniper is escalating. Gazprom’s export division has petitioned a Russian court to suspend an arbitration case initiated by its subsidiary, which is involved in a gas pipeline project connecting Germany and the Czech Republic. This development reflects the intricate legal battles stemming from geopolitical tensions and the dependencies inherent in the energy sector.
Meanwhile, the UK government has announced plans to introduce legislation aimed at clarifying the implications of the Supreme Court’s ruling in the PACCAR case. This ruling raised questions about the enforceability of various litigation funding agreements. This legislative move could significantly influence the future of third-party funding in arbitration.
The implications for third-party funding
This proposed legislation is expected to provide much-needed clarity on the legal landscape surrounding litigation funding. By addressing the uncertainties highlighted by the PACCAR decision, the government seeks to enhance the viability of third-party funding arrangements. Such arrangements are crucial for parties who may lack the resources to pursue legal action, thereby promoting access to justice.
Promoting English law in global arbitration
In an effort to promote the English legal system, members of the London international arbitration community have formed a new panel dedicated to advocating for and securing the future of UK law. This initiative reflects the recognition of the UK’s pivotal role in international arbitration and aims to bolster its status as a preferred jurisdiction for resolving disputes.
In a related development, a UK commercial property group has indicated the possibility of launching an investment treaty claim against Russia regarding the nationalization of its billion-dollar assets. This potential legal action underscores the growing tensions between investors and states, particularly in politically unstable regions.
The implications
The upcoming deliberations by the UK Supreme Court concerning the Czech plasma award may significantly impact international investment disputes. Stakeholders are grappling with these complexities as the legal community remains alert, adapting to a constantly evolving global landscape.
