New York, NY. An International Centre for Settlement of Investment Disputes (ICSID) panel has rejected a Dutch real estate developer’s claim that Turkey should be held accountable for the termination of a residential and commercial real estate project in Istanbul and awarded costs to the Republic of Turkey. Nixon Peabody represented the Republic of Turkey in this international arbitration matter, along with Swiss firm LALIVE and Turkish firm Kuseyri Law Offices.
Tulip Real Estate and Development Netherlands had claimed that the Republic of Turkey had violated the provision of a bilateral investment treaty between Turkey and the Netherlands and brought an ICSID arbitration. After multiple project delays and financing problems, the development contract was terminated. The ICSID panel found that Emlak, a Turkish real estate investment trust, was not a state organ under international law, its acts were not attributable to the Republic of Turkey, and it was entitled to terminate the contract. The panel held that Emlak’s decision did not amount to treaty violations.
Nixon Peabody’s legal team was led by partner Bob Sentner with support from partner Craig Tractenberg, senior counsel Harry Trueheart, associate Kate Martinez, and paralegal Michelle Rivera. This is the second international arbitration matter Nixon Peabody has handled for the Republic of Turkey, both with favorable outcomes for the client.