Robert Azinian, Kenneth Davitian & Ellen Baca v. United Mexcian States
International Centre for Settlement of Investment Disputes
Case No. ARB(AF)/97/2, 14 ICSID Rev. FILJ 238 (1999)
Facts
Robert Azinian, Kenneth Davitian, and Ellen Baca (plaintiffs) were shareholders of a Mexican corporate entity named Desechos Solidos de Naucalpan S.A. de C.V. (DESONA). DESONA was the holder of a concession contract with the administrative authority of Naucalpan de Juarez (Naucalpan), Mexico, relating to waste collection and disposal in that city. Naucalpan identified several irregularities in DESONA’s performance of the contract, including the failure to implement the use of several new vehicles as promised under the contract. Naucalpan decided to annul the concession contract. Azinian, Davitian, and Baca, as owners of DESONA, commenced arbitration proceedings against the Mexican government (defendant), claiming that Nuacalpan’s cancellation of the concession contract violated the North American Free Trade Agreement (NAFTA). During the arbitration, DESONA’s manager, Ariel Goldenstein, testified on DESONA’s behalf. Throughout the proceeding, Goldenstein demonstrated a cavalier attitude toward DESONA’s questionable business practices.
Rule of Law
Issue
Holding and Reasoning ()
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