News and insights

Omnia Strategy successfully defends the Republic of Albania.

7th October 2024

Omnia Strategy has successfully defended the Republic of Albania in a sizeable and long-running investment treaty arbitration claim brought by an Italian investor – Valeria Italia Srl v. Albania (PCA Case No. 2018-49).

Valeria Italia began arbitration proceedings in 2018 relying on the 1991 Italy – Albania bilateral investment treaty, alleging that Albania had unlawfully expropriated its investment in an agricultural project and seeking €82 million in damages.

The Paris-seated arbitration was administered by the Permanent Court of Arbitration in The Hague, where the evidentiary hearing also took place in June 2023 at the Peace Palace.

On 3 October 2024, the Tribunal rendered its Final Award, in which the claims were dismissed in their entirety. The Tribunal held (unanimously) that Albania had not unlawfully expropriated the Claimant’s investment and (by a majority) that the State had not breached the ‘fair and equitable’ treatment standard of protection.

The Tribunal awarded Albania €1,700,000 in respect of costs, representing nearly all the costs incurred by Albania in defending the proceedings. This very high level of recovery reflects Albania’s success on all issues in dispute in the merits phase and vindicates the decision to defend the claim.

Omnia worked closely with the State Advocate’s Office represented by Odise Moçka (State Attorney General) and Manuela Imeraj (Head of Office for Legal Representation in Foreign Courts and International Arbitration Tribunals).

Since 2018, the Omnia team has been led by Cherie Blair CBE, KC and James Palmer. Advocacy and legal work was also conducted by James Dingley, Catriona Paterson, and Ana Paula Montans alongside Pietro Bombonato and Kevin Gerenni with Lucas Bastin KC of Essex Court Chambers joining the team for the 2023 Hearing.

Albania is a longstanding client and this is the third time in a row that Omnia has delivered a successful result in arbitration proceedings following the 2013 defeat of Sky Petroleum, Inc’s $1 billion claim (where again Albania was awarded its costs) and the 2015 amicable settlement of a confidential ICC arbitration valued at $350 million. Today, Omnia continues to support the State, representing Albania pro bono before the International Court of Justice (ICJ) advisory proceedings on States’ obligations in respect of climate change.