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Espiritu Santo Holdings, LP (ES Holdings) v. Mexico, Notice of Intent under NAFTA Chapter 11

30 May 2019
Espíritu Santo Holdings, LP and L1bre Holding, LLC v. United Mexican States (I), ICSID Case No. ARB/20/13
Document provided by: IA Reporter
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Notice of Intent
Document Details:
LISTED PARTICIPANTS
Notice of Intent
Participants listed are for this document only and may not include all participants involved in the entire case. Always consult the original documents.
Claimant appointee
Respondent appointee
Tribunal/Panel chair
Arbitrator(s)
Sole Arbitrator
ICSID Annulment Committee president
ICSID Annulment Committee members
WTO Appellate Body members
WTO Appellate Body chair
Judges
Claimant's counsel
Hogan Lovells, Richard Charles Lorenzo
Claimant's law firm
Respondent's counsel
Respondent's law firm
Other counsel
Claimant's expert
Claimant's expert firm
Respondent's expert
Respondent's expert firm
Claimant's witness
Respondent's witness
Other witnesses
Tribunal secretary
Tribunal assistant
Third-party funder
Entities
Hogan Lovells, Mexico
Country
Print reporter
This summary note is machine-generated. Always consult the original materials.

Procedural Posture and Purpose

This document is a Notice of Intent to Submit a Claim to Arbitration, dated 30 May 2019, filed by Espiritu Santo Holdings, LP (“Investor”), a Canadian enterprise, against the United Mexican States (“Mexico”). The Notice is submitted pursuant to Articles 1116, 1119, and 1120 of the North American Free Trade Agreement (“NAFTA”). It serves as a mandatory procedural prerequisite to the formal commencement of an investor-state arbitration under NAFTA Chapter Eleven, initiating a period for consultation and potential amicable settlement.

Factual Allegations and Basis of Claim

The Investor asserts that its protected investment consists of an indirect interest in a Mexican entity, Servicios Digitales Lusad, S. de R.L. de C.V. (“Lusad”), and a concession agreement awarded to Lusad by the Mexico City Secretariat of Mobility (“Semovi”). The concession granted Lusad the right to substitute existing taximeters across Mexico City’s taxi fleet with a proprietary digital system and to develop an exclusive mobile hailing application. The Investor alleges that following a change in the municipal government, Mexico, acting through Semovi, engaged in a series of acts and omissions designed to frustrate and terminate the concession. These alleged acts include failing to implement a required installation platform, indefinitely suspending the project under political pretexts, and making public statements affirming the new administration's intent to revoke the concession.

Alleged Breaches of Treaty Obligations

The Investor contends that Mexico’s conduct constitutes a breach of several core obligations under NAFTA Chapter Eleven. The primary claims are for violations of: (i) Article 1105 (Minimum Standard of Treatment), by frustrating the Investor’s legitimate expectations and denying due process through arbitrary and non-transparent actions; (ii) Article 1110 (Expropriation and Compensation), arguing that the State’s measures have resulted in a de facto, indirect expropriation of the Investor’s rights under the concession without due process or just compensation; and (iii) Articles 1102 (National Treatment) and 1103 (Most-Favored-Nation Treatment), based on discriminatory treatment compared to domestic and other foreign investors.

Relief Sought

The Investor seeks to submit the dispute to arbitration to obtain full compensation for all losses and damages incurred as a result of Mexico’s alleged breaches of the Treaty. The Notice indicates that the Investor will claim damages in an amount exceeding a specified (redacted) sum, exclusive of interest, costs, and any other relief the arbitral tribunal may deem appropriate. The Investor expressly reserves its right to amend or modify the Notice of Intent.