Historic disqualification in ICSID arbitration (Blue Bank International v Venezuela)

Article summary

Arbitration analysis: Mr José María Alonso, arbitrator and partner at Baker & McKenzie Madrid, has become only the second arbitrator in ICSID history to be disqualified from acting as an arbitrator in an ICSID arbitration. Dr Jim Yong Kim, Chairman of the ICSID Administrative Council, upheld Venezuela’s proposal to disqualify Mr Alonso pursuant to art 57 of the ICSID Convention, deciding that it had been demonstrated that a third party would find an evident or obvious appearance of lack of impartiality on a reasonable evaluation of the facts in the case. As Mr Alonso’s disqualification is only the second in ICSID’s history, the decision will be scrutinised closely by parties and their lawyers when they prepare future challenges against arbitrators. The decision is important, but it does not have precedent value and is unlikely to represent a relaxation of what is viewed as a very high threshold to the disqualification of arbitrators in ICSID proceedings. Nevertheless, partners in law firms should be...