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Czech Republic Lost A 8bln Arbitration

In Economy, Law, Politics on August 14, 2008 by Petr Bokuvka Tagged: , , ,

Czech Republic lost yet another arbitration with a businessman/company that was dissatisfied with the level of investment protection and was ordered to pay CZK 8,3bln. The Czech government says it will try to appeal the verdict, which I don’t quite understand because I thought that contracting parties usually undertake to respect arbitration verdicts without appeals.

The arbitration was a result of a botched blood plasma business of the Diag Human Company whose business activities were allegedly interrupted by the state in 1990’s. Then-Minister of Health wrote a letter to Diag Human’s Danish business partner that said [among other things] that the company’s owner has criminal background and is not to be trusted. The Danish company then cut its business with DH.

Czech News Agency explains: More than a half of the sum that the Czech Republic is to pay to Diag Human under the arbitration award are interests. The above sum is compensation as from July 2007. Since then it has been increasing by another interest of about 1.3 million a day.

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One Response to “Czech Republic Lost A 8bln Arbitration”

  1. nice article.

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