In a victory for King & Spalding and Shearman & Sterling, an arbitration panel has ordered Romania to pay $250 million for violating an investment agreement with two wealthy brothers and business moguls, Ioan and Viorel Micula.
In a nonpublic decision issued on Dec. 11, a panel of three arbitrators associated with the International Centre for Settlement of Investment Disputes (ICSID) determined that the Romanian government improperly revoked incentives it offered to the Micula brothers in the hope that they would build factories in the Eastern European nation. The panel ordered Romania to pay the Macula brothers and their companies $116 in damages (mostly from lost profits), plus $134 million in interest.
