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Case of the Day: Concesionaria Dominicana de Autopistas y Carreteras v. Dominican Republic- 45,000,000USD

20.12.2012 00:00

Welcome back, and happy new year! The case of the day is Concesionaria Dominicana de Autopistas y Carreteras v. Dominican State (D.D.C. 2012). In 2001, the Concesionaria Dominicana de Autopistas y Carreteras (CODACSA) entered into a contract with the government of the Dominican Republic to develop several highways. Under the contract, CODACSA was entitled to collect tolls in exchange for financing and construction work. But according to CODACSA, the government breached the contract by failing to provide required bank guaranties. CODACSA initiated an arbitration before the Arbitration Court of the ICC in Washington, and the tribunal found that the Dominican Republic had breached the contract and awarded more than $33 million in damages. 

CODACSA moved to confirm the award in the District of Columbia. It served the papers on the Dominican Republic by private courier (DHL), and while the Republic accepted service, it did not respond to the petition. CODACSA then sought a default judgment.

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Editor: George Richardson