Tereposky & DeRose had the privilege of assisting the Secretaría de Economía represent Mexico in a claim seeking US$472 million plus interest and costs brought by a US national pursuant to Chapter 11 of the North American Free Trade Agreement (NAFTA). By award dated June 5, 2020, the UNCITRAL rules Tribunal in Joshua Dean Nelson v. The United Mexican States dismissed all of the investor’s claims and ordered the Claimant to pay over US$2 million in costs to Mexico.
The Claimant alleged that his investment in a telecommunications company called Tele Fácil México S.A. de C.V. (Tele Fácil) had been unlawfully expropriated. Specifically, the Claimant alleged that Mexico had expropriated Tele Fácil’s rights to interconnect with Telmex (pursuant to a purported Interconnection Agreement between Tele Fácil and Telmex) and to earn revenues on that Interconnection Agreement. The Claimant also alleged that the fair and equitable treatment provisions of NAFTA were breached by a purported denial of justice in the Mexican courts. The Tribunal unanimously rejected all of the claims on the merits.
In dismissing those claims, the Tribunal made the following observations:
With respect to costs, the Claimant’s arbitration costs, including legal fees and expenses, totalled just over US$6.4 million. By contrast, Mexico’s total arbitration costs were just over US$2.5 million. The Tribunal ordered that the Claimant pay Mexico over US$2 million in costs.
The Tereposky & DeRose defence team was composed of Partners Jennifer Radford and Vince DeRose, Senior Counsel Cameron Mowatt, Economist Alejandro Barragán, and Mexican Legal Counsel Ximena Iturriaga.