Burford Capital Files ICSID Arbitration Against Argentina Over YPF Expropriation
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TL;DR
- Burford Capital lost expropriation lawsuit against Argentina in US courts.
- Burford is now pursuing arbitration against Argentina at ICSID over YPF's nationalization.
- ICSID has accepted the arbitration request and will set a procedural calendar.
- This arbitration is separate from the prior US proceedings.
Overview
Burford Capital has initiated arbitration against Argentina at the International Centre for Settlement of Investment Disputes (ICSID) following the expropriation of YPF.
This comes after Burford lost a high-profile US court case related to the same expropriation.
The arbitration process at ICSID is separate from previous litigation in US courts.
What Happened
Burford Capital lost its more-than-decade-long expropriation litigation against Argentina in US courts concerning the nationalization of YPF in 2012.
After the US Second Circuit Court of Appeals overturned an earlier judgment in favor of Burford, the company announced it would pursue further remedies.
Burford has now filed an arbitration case at ICSID, a tribunal under the World Bank, initiating proceedings that are distinct from the prior US litigation.
According to government sources, ICSID has accepted Burford's request, and procedural steps, including setting the case calendar, will follow.
Context
Argentina expropriated a 51% stake in YPF from Spain's Repsol in 2012 under a law passed by the Argentinian parliament.
Burford Capital and Eton Park acquired the rights to litigate on behalf of affected parties and previously obtained a favorable ruling at first instance in the US, which was later overturned.
ICSID arbitration is governed by international investment treaties and differs from national court litigation.
Why It Matters
- The arbitration filing at ICSID opens a new legal front in the dispute over Argentina's 2012 expropriation of YPF.
- It follows the reversal of a high-value US judgment against Argentina and could lead to further international legal scrutiny.
- The procedural step may impact the global perception of investor-state dispute mechanisms and the future legal risks for the parties involved.