ZAGREB, Croatia, Wednesday, July 21st 2010 [ME NewsWire]:
(BUSINESS WIRE)-- The Republic of Croatia has won a resounding victory in an international arbitration brought against it by Austrian company, Adria Beteiligungs GmbH (Adria). Adria had made a series of unfounded and exaggerated claims against the Republic of Croatia and demanded compensation in excess of €80 million. In an Award dated 21 June 2010, an arbitration tribunal constituted under the United Nations Commission on International Trade Law (UNCITRAL) Rules dismissed Adria’s claims in their entirety. The Republic of Croatia was represented by the Office of the Attorney General and assisted by Latham & Watkins' public international law group, led by partners Stephen Fietta, Robert Volterra and Sebastian Seelmann-Eggebert.
Adria’s claims arose out of its dispute with the Croatian Lottery dating back to the early 1990s. The dispute related to two gaming joint ventures that pre-dated the dissolution of the Former Socialist Republic of Yugoslavia. The joint ventures’ economic fortunes suffered a severe downturn during the Croatian War of Independence. The business relationship between Adria and the Croatian Lottery deteriorated when Adria tried to seize management control of the joint ventures. Croatian Lottery terminated the joint ventures in 1994 due to economic performance and management deadlock.
Following the termination, Adria commenced proceedings against the Croatian Lottery in the courts of the Republic of Croatia. Following a thorough examination of Adria’s complaint the Croatian court ordered the Croatian Lottery to pay €4.5 million compensation to Adria. Croatian Lottery subsequently paid that compensation in full. Adria continued to pursue a separate claim against the Croatian Lottery for lost profits, which is still pending before the Croatian courts.
The June 2010 Award rejects Adria’s claims against the Republic of Croatia in their entirety.
The Award confirms that the dispute between Adria and the Croatian Lottery was of a commercial nature and did not involve any legal responsibility on the part of the Republic of Croatia. The Tribunal further noted that the Republic of Croatia’s courts had provided Adria with a full and fair hearing of its claims and had already ordered the Croatian Lottery to pay substantial compensation to Adria for its loss.
The Republic of Croatia is satisfied that the Tribunal’s decision confirms that Adria’s claims are groundless and that the Republic of Croatia has not violated any of its international obligations owed to foreign investors.
For media enquiries, please contact:
Latham & Watkins
Stephen Fietta or Robert Volterra
+44.207.710.1000
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