Baywa R.E. Ag v. Kingdom of Spain

CourtDistrict Court, District of Columbia
DecidedMay 20, 2026
DocketCivil Action No. 2022-2403
StatusPublished

This text of Baywa R.E. Ag v. Kingdom of Spain (Baywa R.E. Ag v. Kingdom of Spain) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baywa R.E. Ag v. Kingdom of Spain, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

_________________________________________ ) BLASKET RENEWABLE ) INVESTMENTS, LLC, ) ) Petitioner, ) ) Case No. 22-cv-02403 (APM) v. ) ) KINGDOM OF SPAIN, ) ) Respondent. ) _________________________________________ )

MEMORANDUM OPINION AND ORDER

I. INTRODUCTION

Petitioner Blasket Renewable Investments, LLC (“Blasket”) seeks to enforce against

Respondent Kingdom of Spain (“Spain”) an arbitration award of €22,006,000 with interest as

rendered by a tribunal of the International Centre for Settlement of Investment Disputes (“ICSID”).

The award arises out of Spain’s breach of its commitments under the Energy Charter Treaty

(“ECT”). Spain moved to dismiss for lack of jurisdiction or to stay these proceedings pending its

application to annul the award. After briefing concluded, the D.C. Circuit held in NextEra Energy

Global Holdings B.V. v. Kingdom of Spain, 112 F.4th 1088 (D.C. Cir. 2024), that (1) federal

district courts have jurisdiction under the Foreign Sovereign Immunities Act (FSIA) to enforce

ICSID awards arising out of ECT arbitrations and (2) forum non conveniens is not available in

proceedings to confirm a foreign arbitral award. The parties have since filed supplemental briefs

to reflect NextEra Energy. But Spain continues to maintain, as it has from the start, that no forum

has jurisdiction or authority to issue or enforce the arbitral award because European Union (EU) law voids any agreement to arbitrate under the ECT as between an EU Member State and investors

of another EU Member State.

For the reasons that follow, Spain’s Motion to Dismiss the Petition or Stay the Proceedings,

ECF No. 14, is denied.

II. BACKGROUND

A. The Energy Charter Treaty and the ICSID Convention

The ECT is a multilateral investment treaty among 53 contracting parties established

“to promote long-term cooperation in the energy field.” Pet. to Enforce Arbitral Award,

ECF No. 1 [hereinafter Pet.], Ex. 3, ECF No. 1-3 [hereinafter ECT], art. 2; Resp’t’s Mot. to

Dismiss the Pet. or to Stay the Proceedings, ECF No. 14 [hereinafter Resp’t’s Mot.], Resp’t’s

Mem. of Law in Supp. of Resp’t’s Mot., ECF No. 14-1 [hereinafter Resp’t’s Mem.], at 12–13.

Among the contracting parties are the EU; most EU Member States, including Spain and Germany;

and several non-EU states. Pet. ¶¶ 13–15; Resp’t’s Mem. at 12–13. The ECT’s purpose is to

protect investments in the territory of one contracting party by investors located or incorporated in

other contracting parties. ECT art. 26. As relevant here, Article 26 provides that such investments

are protected by each contracting party’s “unconditional consent” to international arbitration in the

event of a covered dispute. Id. art. 26(3).

The ICSID is one forum in which parties seeking dispute resolution under the ECT may

arbitrate. Id. art. 26(4)(a). The ICSID Convention is a multilateral treaty “aimed at encouraging

and facilitating private foreign investment in developing countries.” Mobil Cerro Negro, Ltd. v.

Bolivarian Republic of Venezuela, 863 F.3d 96, 100 (2d Cir. 2017). Spain, Germany, the United

States, and over 100 other nations are ICSID Convention signatories. See Database of ICSID

Member States, ICSID, https://perma.cc/2CVA-8AZV. Signatories agree to recognize ICSID

2 awards “as binding” and to “enforce the pecuniary obligations imposed by that award” in their

courts. Pet., Ex. 2, ECF No. 1-2, art. 54(1). The United States’ obligation to enforce ICSID awards

is codified at 22 U.S.C. § 1650a, which provides that “pecuniary obligations imposed by

[an ICSID] award shall be enforced and shall be given the same full faith and credit as if the award

were a final judgment of a court of general jurisdiction of one of the several States.” 22 U.S.C.

§ 1650a(a).

B. Underlying Dispute and Procedural History

Just before the turn of the century, Spain began offering financial incentives to encourage

investments in renewable energy production within its territory. Pet. ¶ 11. The corporate

predecessors of BayWa r.e. AG (“BayWa”), a company incorporated in Germany, invested in

Spanish wind farms in reliance on these promised financial incentives. Id. ¶¶ 1, 11. But over a

decade later, Spain walked and clawed back the subsidies it had previously doled out. Id. ¶¶ 11, 17.

Believing this a violation of Spain’s commitments under the ECT, BayWa sought arbitration with

Spain before the ICSID. Id. ¶ 17. A tribunal was convened, and it determined, among other things,

that (1) the tribunal had jurisdiction over the dispute and (2) Spain had breached its obligation to

BayWa under the ECT. Id. ¶¶ 18–20. It awarded BayWa €22,006,000 with interest at the six-

month EURIBOR rate, compounded semi-annually from July 13, 2013, to the date of payment.

Id. ¶ 21. Spain, in turn, applied to the ICSID for an annulment of the award. Resp’t’s Mem. at 14.

Throughout the initial arbitration and in its application for annulment, Spain argued that

the ICSID tribunal lacked jurisdiction to issue an arbitral award because, under EU law, “Article 26

of the ECT does not apply to disputes between an EU Member State and investors of another

EU Member State (i.e., ‘intra EU-disputes’).” Id.

3 BayWa petitioned for enforcement of the ICSID award in this court in 2022. See generally

Pet. Spain moved to dismiss the action or for a stay pending its annulment application.

See generally Resp’t’s Mot. As litigation progressed, BayWa assigned title to the award to

Blasket, who was substituted as the petitioner in this action. See Mot. for Substitution, ECF

No. 25, at 1; Minute Order, Aug. 17, 2023.

Several events transpired thereafter. After briefing concluded, the ICSID denied Spain’s

application for annulment. Pet’r’s Notice of Decision Den. Spain’s Annulment Appl., ECF No. 24

[hereinafter Pet’r’s Notice]. In doing so, the ICSID again rejected Spain’s argument that it lacked

jurisdiction to issue the arbitral award. Pet’r’s Notice, ECF No. 24, Ex. A, ECF No. 24-1

[hereinafter ICSID Annulment Decision], ¶¶ 169–195. But the matter was nevertheless stayed

pending resolution of three related appeals before the D.C. Circuit. See Order to Show Cause,

ECF No. 27; Minute Order, Aug. 24, 2023. Those appeals were decided in 2024 by NextEra

Energy Global Holdings B.V. v. Kingdom of Spain, 112 F.4th 1088 (D.C. Cir. 2024), where the

D.C. Circuit held, as relevant here, that (1) federal district courts have jurisdiction under the FSIA

to enforce ICSID awards arising out of ECT arbitrations and (2) forum non conveniens is not a

valid ground for dismissal in proceedings to confirm a foreign arbitral award. The parties then

filed supplemental briefs to reflect the developments of NextEra Energy. See Resp’t’s Suppl. Br.

in Supp. of Resp’t’s Mot., ECF No. 36 [hereinafter Resp’t’s Suppl.]; Pet’r’s Suppl. Br.,

ECF No. 35 [hereinafter Pet’r’s Suppl.].

III. LEGAL STANDARD

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