Originally from International Arbitration Court Decisions - 3rd Edition

DISTRICT COURT OF THE HAGUE,

THE NETHERLANDS DECISION ON 1 AUGUST 2007 CASE NO. LJN: BB1424, 255948 / HA ZA 05-3983

Subject Matter:
Conformity with public policy of an arbitral award made in The Netherlands and involving a dispute between Nederlands Elektriciteit Administratiekantoor and the State regarding the amount of the payable non-market-compatible costs of the unprofitable Demkolec plant.

Findings:
Challenge rejected. The ground for annulment set out in Article 1065(1)(e) of the Dutch Code of Civil Procedure (violation of public policy) must be applied restrictively. The result of the arbitration award is consistent with and stays within the bounds of the decision concerning State aid of the European Commission of 25 July 2001, so that Articles 87 and 88 of the EC Treaty (“EC”) (currently Articles 107 and 108 of the Treaty on the Functioning of the European Union (“TFEU”)) have not been violated.

Parties:
Claimant: STAAT DER NEDERLANDEN
Respondent: B.V. NEDERLANDS ELEKTRICITEIT
ADMINISTRATIEKANTOOR

Place of court proceedings:
The Hague, The Netherlands

Applicable Law:
Dutch Law

Place of Arbitral Proceedings:
The Netherlands