Siemens A.G. v. Argentine Republic

ICSID Case No. ARB/02/8 (2007)

From our private database of 46,000+ case briefs, written and edited by humans—never with AI.

Siemens A.G. v. Argentine Republic

International Centre for Settlement of Investment Disputes
ICSID Case No. ARB/02/8 (2007)

Facts

In 1996, the government of Argentina (Argentina) (defendant) asked for bids to develop a system to support immigration control, national identity cards, and electoral processes. Siemens A.G. (plaintiff) bid through a wholly owned, special-purpose Argentine company, Siemens IT Services, S.A. (SITS). SITS’s bid was selected and approved by Argentine decree. A contract between Argentina and SITS was executed (contract). SITS was not to be paid until the system was operational. Nationwide operation was scheduled for August 1999, but this required Argentina to negotiate agreements with its provinces that were never made because of political issues. In August, Argentina asked SITS to delay production until October, when a new president and administration would take office. In February 2000, Argentina shut down the immigration subsystem because it lacked a necessary state authorization. Argentina suspended the identity-card system because of a thumbprint issue it would not allow SITS to correct. Argentina told SITS it wanted to renegotiate the contract price. In November 2000, Argentina passed the Economic-Financial Emergency Law, allowing Argentina to renegotiate public-sector contracts. Meanwhile, Siemens and Argentina’s ministry of the interior agreed on a new Contract Restatement Proposal (CRP), but it was not approved as Siemens expected in December 2000. In April 2001, the new ministry of the interior denied knowledge of the CRP and sent Siemens a new proposal. In May 2001, Argentina terminated the contract by decree. SITS was not paid. Siemens’s administrative appeal was rejected. Siemens brought claims under an investment treaty to which Argentina was a signatory. Under the treaty, states were not permitted to expropriate foreign investments and were required to treat investors fairly and equitably, not arbitrarily. Under the treaty, a state’s actions could amount to expropriation only if the state exercised its public authority. Argentina argued that its actions were commercial in nature and amounted only to breach of contract, not expropriation.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 742,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 742,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,000 briefs, keyed to 986 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 742,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,000 briefs - keyed to 986 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership