Republic of Zimbabwe (Appellant) v Border Timbers Ltd and another (Respondents)

Case summary

Case ID

UKSC/2024/0156

Parties

Appellant(s)

Republic of Zimbabwe

Respondent(s)

(1) Border Timbers Limited, (2) Hangani Development Co. (Private) Limited

Issue

(1) Does Article 54(1) of the ICSID Convention, properly interpreted, constitute a submission to the jurisdiction by prior agreement for the purposes of section 2(2) State Immunity Act 1978 (“SIA 1978”)? (2) Does section 9 of the SIA 1978 require UK courts to satisfy themselves that there exists a valid arbitration agreement, such that the appellant state was not immune from the adjudicative jurisdiction of the English courts pursuant to section 1(1) SIA?

Facts

This case concerns whether foreign states can rely on state immunity to set aside the registration of any ICSID arbitral award in the United Kingdom. Two appeals have been grouped together on the basis that the appeals raise the same issues. Both arise from challenges to investment arbitration awards brought against states (Spain and Zimbabwe) by foreign private investors in those countries, who claim they have suffered losses caused by the states in breach of their international obligations. Two arbitral awards found in favour of the respective investors, awarding compensation totalling €101m against Spain, and US$125m against Zimbabwe. The investors subsequently applied to have their respective awards registered under the Arbitration (International Investment Disputes) Act 1966 (“1966 Act”), which gives effect to the United Kingdom’s obligations under the 1965 Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“ICSID Convention”). These were duly registered. Once served, both Zimbabwe and Spain applied to have the registrations set aside by reason of state immunity. These applications were refused though for substantially different reasons. The appeals by both states were subsequently considered together before the Court of Appeal, which dismissed their applications, on the grounds that both states’ agreement to the ICSID Convention amounted to submission to jurisdiction before the UK courts under section 2 of SIA 1978. Both states now appeal this decision before the Supreme Court.

Date of issue

20 November 2024

Judgment appealed

Linked cases

Judgment details

Judgment date

4 March 2026

Neutral citation

[2026] UKSC 9

Appeal

Justices

Lord Lloyd-Jones

Lord Briggs

Lord Sales

Lord Leggatt

Lady Simler

Hearing dates

Full hearing

Start date

1 December 2025

End date

3 December 2025

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