S & T Oil Equipment & Machinery Ltd. v. Romania

This dispute involves a claim by S & T Oil Equipment & Machinery Ltd. (“S&T”) against Romania. At issue is S&T’s former interest in S.C. Nitramonia S.A. (“Nitramonia”), a chemical manufacturing and processing plant located in Romania. S&T entered into an agreement in 2003 with Romania’s privatization authority to take over Nitramonia. After S&T refused to cure numerous alleged breaches of its obligations under that agreement, the privatization authority terminated the agreement in 2005 and took back ownership of Nitramonia, thereby eliminating S&T’s interest.

Joseph Wilkinson, prior to joining Econ One, was asked to assist counsel for Romania in an ICSID arbitration brought by S&T against Romania. In this case, S&T claimed that its interest in Nitramonia had been unlawfully expropriated and that it was owed compensation. Mr. Wilkinson submitted an expert report regarding the appropriate valuation of Nitramonia to be used in determining compensation for S&T, as well as the examination of S&T’s management of Nitramonia’s assets. After that report was filed, S&T failed to advance payments required by ICSID to meet costs to be incurred in the arbitration proceeding. As a result, in 2010, the arbitration tribunal discontinued the proceedings in this case.