MEXICO CITY, Sept. 29 (Xinhua) -- Mexico won an international arbitration case after a tribunal dismissed the complaint brought by a U.S.-based parking meter company and ordered it to pay over a million U.S. dollars in restitution for the legal fees incurred, the Economy Ministry said Tuesday.
Doups Holdings LLC was seeking some 600 million pesos (about 33 million dollars) in damages from the Mexican government after its concessions for installing and operating parking meters in Mexico City, through a local firm, were revoked by the Mexico City Mobility Secretariat.
Doups had filed its claim with the International Center for Settlement of Investment Disputes (ICSID) under the rules of the North American Free Trade Agreement, which was in effect at the time.
The ICSID tribunal ruled that it had no jurisdiction over the claim and dismissed the case, ordering the company to pay more than 1 million dollars to cover Mexico's legal and procedural costs.
According to the Economy Ministry, "from the outset of the arbitration, Mexico maintained that the claim suffered from serious deficiencies, specifically regarding the structuring of the subsidiary company that allegedly sustained the damages."
There were issues concerning Doups' control over the subsidiary and its compliance with arbitration procedures, among others, the ministry said.
The ICSID, a World Bank Group institution responsible for resolving international disputes between investors and states, has made the award and additional information regarding the arbitration available.
The ruling marks another instance in which Mexico has utilized international legal mechanisms to defend itself against investor claims brought under investment protection treaties. ■
