Writing in NLJ this week, Kamran Rehman and Harriet Campbell, Penningtons Manches Cooper, explain how the Court of Appeal's decision in CC/Devas v Republic of India draws a sharp distinction between the ICSID Convention and the New York Convention.
While the Supreme Court recently found the ICSID Convention can amount to a waiver of state immunity, the Court of Appeal ruled that simply ratifying the New York Convention does not.
As the authors note, 'no waiver, no enforcement' remains the practical reality for many investors pursuing sovereign states. They warn that claimants must assess not only the strength of their arbitration case but also enforcement risk, collection prospects, costs and timing. A favourable award may prove to have only limited value if sovereign immunity remains available as a defence.
