Reineccius (Claim No 1), First Eagle Sogen Funds Inc. (Claim No 2), Mathieu and la Société de Concours Hippique de La Châtre (Claim No 3) v. Bank for International Settlements

Abstract

Arbitration — Two phases — Tribunal concerning Bank for International Settlements — First phase of arbitration — Bank organized as company limited by shares — Whether Bank an international organization — Applicable law — Bank amending Statutes — Bank compulsorily recalling private shares — Legality of Bank’s actions — Legality of recall of shares and procedures used — Amendment of Statutes by addition of Article 18A — Conformity with Bank’s Statutes — Articles 57 and 58 of Statutes — Interpretation — Conformity with international law principles — Compensation — Adequacy — Valuation of compulsorily recalled shares — Applicable law — Final phase of arbitration — Determination of exact amount Bank owing per share — Valuation of real estate — Bank’s counterclaim against second claimant

International organizations — Bank for International Settlements — Legal character and status — Bank having private shareholders — Bank possessing Constituent Charter granted by Switzerland — Bank created by treaty — Whether Bank an international organization — Origins, functions and purpose — Bank’s Constituent Instruments — 1930 Hague Agreement — Charter — Statutes — Law governing Bank and its relations with private shareholders — Whether Bank having sovereign powers — Legality of Bank’s recall of shares and procedures used — Whether Bank having power to add Article 18A to Statutes — Whether Bank using correct valuation method for compensation

Treaties — 1930 Hague Agreement — Creation of Bank for International Settlements — Bank’s Charter annexe to 1930 Hague Agreement — Company limited by shares — Constituent Instruments of Bank — Treaty origins of Bank — Legal character and status of Bank — Applicable law

Relationship of international law and municipal law — 1930 Hague Agreement — Bank’s Charter annexed to 1930 Hague Agreement — Swiss monist system — Switzerland granting Constituent Charter to Bank — Creation of Bank — Whether Swiss law applicable — Whether international law applicable — Legality of recall of shares and procedures used — Conformity with Statutes — Interpretation of Statutes — Article 31(3)(b) of Vienna Convention on Law of Treaties, 1969 — Conformity with international law principles — Expropriation — Bank’s Constituent Instruments — Status — Relationship of Constituent Instruments with international law

Expropriation — Bank compulsorily repurchasing private shares — Legality of Bank’s actions — Whether contrary to international law of expropriation — Whether Bank’s actions meeting requirements — Public interest — Non-discrimination — Compensation

Damages — Compensation — Adequacy — Whether amount paid by Bank for recalled shares adequate — Valuation of compulso- rily recalled shares — Applicable law — Method of valuation — Valuation of real estate — Bank’s counterclaim against Claimant No 2 — Whether Claimant No 2 breaching Article 54(1) of Bank’s Statutes — Bank’s request for declaratory relief — Interest — Costs and expenses