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July 25, 2017

King & Spalding Secures $320 Million ICSID Arbitration Victory in Argentine Nationalization Dispute

HOUSTON, July 25, 2017 — King & Spalding won a long-running ICSID arbitration case for Spain-based clients Teinver S.A., Transportes de Cercanías S.A. and Autobuses Urbanos del Sur S.A. against the Argentine Republic over the unlawful expropriation of two airlines.

The case launched in 2008 and centered on claims from the clients, acting as claimants in the arbitration, that the Argentine government had expropriated Aerolíneas Argentinas S.A. and Austral-Cielos del Sur S.A. in breach of the 1991 Promotion and Protection of Investments Treaty between Spain and Argentina. Claimants also alleged that the country maintained airfares at artificially low levels and prevented the airlines from charging sufficient rates for airfares, resulting in a financial squeeze that damaged both claimants’ investment and the value of the airlines.

A majority ICSID tribunal in Washington, D.C., ruled in favor of the claimants on July 21, declaring that the Argentine Republic acted in breach of the treaty by failing to grant claimants fair and equitable treatment of their investments, by unjustified measures in interfering with claimants’ rights in respect of their investments, and by unlawfully expropriating claimants’ investments. The panel directed the Argentine Republic to pay the claimants US$320.76 million, as well as interest. King & Spalding was awarded $3.4 million in legal fees.

The firm’s team advising the claimants included Houston partners Roberto Aguirre Luzi, Doak Bishop, Craig Miles, Silvia Marchili and senior associate Jorge Mattamouros.

About King & Spalding
Celebrating more than 130 years of service, King & Spalding is an international law firm that represents a broad array of clients, including half of the Fortune Global 100, with 1,000 lawyers in 19 offices in the United States, Europe, the Middle East and Asia. The firm has handled matters in over 160 countries on six continents and is consistently recognized for the results it obtains, uncompromising commitment to quality, and dedication to understanding the business and culture of its clients. More information is available at