International disputes firm LALIVE has announced that it has won a legal dispute for its client Lupaka Gold in arbitration proceedings against Peru under the auspices of the International Centre for Settlement of Investment Disputes (ICSID).

The dispute arose under the Free Trade Agreement (FTA) between Canada and Peru and concerned Lupaka’s investment in the Invicta gold project, located in the Andean highlands of Peru.

The tribunal, composed of president Professor John R Crook, Oscar M Garibaldi, and Dr Gavan Griffith KC, unanimously found that Peru had breached its obligations under the FTA by failing to provide full protection and security and fair and equitable treatment, as well as by unlawfully expropriating Lupaka’s investment.

The tribunal concluded that the actions of the Parán community, including the blockade, occupation and eventual seizure of the Invicta mine, were attributable to the State.

It also found that Peru’s national authorities had failed to exercise due diligence in protecting the investment, relying instead on a policy of dialogue that proved ineffective.

The tribunal awarded Lupaka Gold compensation of $40.4-million plus interest, 100% of the amount claimed, as well as full reimbursement of its legal costs and expenses, amounting to $4.2-million. The award reflects the fair market value of the investment as of August 2019, when Lupaka lost control of the mine following the State’s failure to act.

LALIVE partners Dr Marc Veit of London and Jaime Gallego of Geneva led the cross-border team representing Lupaka, supported by counsel Luis Miguel Velarde Saffer of Geneva and associates Stela Negran of London and Guillermina Huber of London (no longer with the firm).

Boies Schiller Flexner counsel Timothy Foden acted as co-counsel until he resigned before the award was rendered.

“We are grateful for the tribunal’s careful consideration of the facts and law, and for the trust placed in us by Lupaka Gold. This award is the result of years of dedicated work by our team and reflects the importance of legal protections for foreign investors operating in complex environments and how States are responsible for illegal acts by its communities,” Veit said.

The Republic of Peru was represented by a team from the Ministry of Economy and Finance and Arnold & Porter.

Bench Walk Advisors provided funding to Lupaka in relation to the dispute.