Investment Arbitration – Admission of Host State’s counterclaims Burlington Resources Inc. vs Ecuador

March 2017

In a decision on counterclaims issued on February 7, 2017 the arbitral tribunal designated in this matter, after an uncommon substantial analysis of Ecuadorian environmental law, declared that Burlington (the Claimant) was liable towards Ecuador for the costs of: (i) restoring the environment and (ii) restoring the infrastructure, in the areas concerned by the investment project. The tribunal thus ordered Burlington Resources to pay damages around USD 41 Million.