Mondev International Ltd. v. United States of America, ICSID Case No. ARB(AF)/99/2 (NAFTA), Award
This dispute arises out of a commercial real estate development contract concluded in December 1978 between the City of Boston (“the City”), the Boston Redevelopment Authority (“BRA”) and Lafayette Place Associates (“LPA”), a Massachusetts limited partnership owned by Mondev International Ltd., a company incorporated under the laws of Canada (“Mondev” or “the Claimant”). In 1992, LPA filed a suit in the Massachusetts Superior Court against the City and BRA. The trial was held in 1994 and culminated in a jury verdict in favour of LPA against both defendants. The trial judge upheld the jury's verdict for breach of the Tripartite Agreement against the City, but rendered a judgment notwithstanding the verdict in respect of BRA, holding BRA immune from liability for interference with contractual relations by reason of a Massachusetts statute giving BRA immunity from suit for intentional torts. Both the City and LPA appealed. The Massachusetts Supreme Judicial Court (“SJC”) affirmed the trial judge's decision in respect of BRA but upheld the City's appeal in respect of the contract claim. LPA petitioned for rehearing before the SJC on both claims, and sought certiorari to the United States Supreme Court in respect of its contract claim against the City. Each of these petitions was denied. In the event, therefore, LPA eventually lost both its claims.