Government Wins Arbitration Against Employers

An international tribunal has ruled in favor of the Costa Rican government in a legal process in which US investors denounced arbitrary actions in the development of a real estate project in Esterillos beach.

Friday, September 21, 2018

From  a statement issued by the Ministry of Foreign Trade:

San Jose. On September 19, 2018, the Government of Costa Rica was notified by the International Center for Settlement of Investment Disputes (ICSID) of the decision adopted by the Arbitral Tribunal in the case of David Richard Aven et al.c. Costa Rica (known as "Las Olas"). This arbitration was filed by a group of US investors in 2014, under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). 
 
In their complaint, the plaintiffs alleged arbitrary actions were taken on the part of the State as a result of the suspension of environmental feasibility permits in a 39-hectare tourist project located on Esterillos Beach, which led to paralysis of the project. The reason for the suspension of the project by the government authorities was the identification of several wetlands and forests located on the land to be developed that had been affected by the plaintiffs.

Read full statement (In Spanish).
 

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