Infrastructure Services Luxembourg S.A.R.L. v. Kingdom of Spain

CourtDistrict Court, District of Columbia
DecidedAugust 12, 2025
DocketCivil Action No. 2018-1753
StatusPublished

This text of Infrastructure Services Luxembourg S.A.R.L. v. Kingdom of Spain (Infrastructure Services Luxembourg S.A.R.L. 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
Infrastructure Services Luxembourg S.A.R.L. v. Kingdom of Spain, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

INFRASTRUCTURE SERVICES LUXEMBOURG S.A.R.L., et al.,

Petitioners, Civil Action No. 18 - 1753 (LLA) v.

KINGDOM OF SPAIN,

Respondent.

MEMORANDUM OPINION AND ORDER

Petitioners Infrastructure Services Luxembourg S.A.R.L. and Energia Termosolar B.V.,

Luxembourg- and Netherlands-based companies, respectively, bring this action seeking to confirm

an arbitral award entered in their favor against Respondent, the Kingdom of Spain (“Spain”). ECF

No. 1. Pending before the court is Spain’s motion to dismiss, ECF No. 18, which is fully briefed,

ECF Nos. 18, 19, 23, 25, 104, 105, 108, 109. For the following reasons, the court will deny the

motion to dismiss.

I. FACTUAL BACKGROUND

A. The Energy Charter Treaty and the ICSID Convention

The Energy Charter Treaty (“ECT”) is a multinational treaty that “establishes a legal

framework in order to promote long-term cooperation in the energy field, based on

complementarities and mutual benefits.” ECT Art. 2. Spain, Luxembourg, and the Netherlands are all among the ECT’s signatories.1 As relevant here, the ECT provides that when disputes

between signatories related to an energy investment arise, “each Contracting Party . . . gives its

unconditional consent to the submission of a dispute to international arbitration.” ECT

Art. 26(3)(a). And where “the Contracting Party of the Investor and the Contracting Party . . . to

the dispute are both parties to the ICSID Convention,” arbitration must occur under that

framework. Id. Art. 26(4)(a)(i).

The Convention on the Settlement of Investment Disputes Between States and Nationals

of Other States (“ICSID Convention”), in turn, provides facilities and processes for “conciliation

and arbitration of investment disputes between Contracting States and nationals of other

Contracting States,” ICSID Convention Art. 1, including through adjudication by arbitration

tribunals, id. Sec. 2. When arbitration is appropriate, signatories to the ICSID Convention consent

to “arbitration to the exclusion of any other remedy,” id. Art. 26, and agree that “award[s] shall be

binding on the parties and shall not be subject to any appeal or to any other remedy except those

provided for in th[e] Convention,” id. Art. 53(1). Parties to the Convention “may

enforce . . . [ICSID arbitration] award[s] in or through [their] federal courts and may provide that

such courts shall treat the award as if it were a final judgment of the courts of a constituent state.”

Id. Art. 54(1).

The United States, Spain, Netherlands, and Luxembourg are all parties to the Convention.

ECF No. 1 ¶¶ 11, 20. In the United States, the obligation to enforce ICSID awards is codified at

22 U.S.C. § 1650a, which provides that “pecuniary obligations imposed by [an ICSID] award shall

1 See International Energy Charter, Contracting Parties and Signatories of the Energy Charter Treaty, https://perma.cc/K6D3-WEQN.

2 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.”

B. The Present Dispute

After Spain enacted legislation that aimed to attract investments in renewable energy

production through various financial incentives, Petitioners invested roughly 139.5 million euros

in solar power projects in Spain. ECF No. 1 ¶ 7. Spain later walked back the legislation,

eliminating the financial incentives that had led Petitioners to invest in the Spanish solar energy

projects. Id. Because these investments were protected under the ECT, id. ¶ 8, Petitioners

requested arbitration by an ICSID tribunal, “contend[ing] that Spain’s legislative actions that

resulted in the devaluation of Petitioners’ investments constituted a breach of Spain’s obligations

under the ECT,” id. ¶ 12. Spain argued that the tribunal lacked jurisdiction because “Article 26 of

the ECT does not apply to investors from other [European Union (“EU”)] Member States and is

limited to investors from states that are not members of the EU.” ECF No. 18-1, at 9.

In June 2018, the ICSID tribunal issued an award in Petitioners’ favor, determining that

Spain had breached its duty to Petitioners under Article 10 of the ECT and ordering Spain to pay

112 million euros in damages plus interest and costs. ECF No. 1 ¶¶ 14-15. The next month, Spain

submitted a Request for Rectification of the Award based on clerical errors in the tribunal’s

calculation. Id. ¶ 17. In February 2019, the panel ruled on this request, amending the award to

101 million euros. ECF No. 104, at 3 n.2. In May 2019, Spain applied for annulment of the award,

see ECF No. 35-1, and in July 2021, an ICSID committee denied the application, see ECF Nos. 46,

46-1.

While the ICSID proceedings were ongoing, Petitioners sought confirmation of the

arbitration award in this court. In July 2018, Petitioners filed a petition to confirm the award. ECF

3 No. 1. Spain moved to dismiss the petition for lack of jurisdiction and failure to state a claim, and

it additionally moved for a stay pending the outcome of annulment proceedings. ECF No. 18. The

court (Sullivan, J.) stayed the case, ECF No. 36, and the case remained stayed until January 2022,

see Jan. 28, 2022 Minute Order. In September 2022, the case was referred to Magistrate Judge

Upadhyaya. See Sep. 22, 2022 Minute Order. In September 2023, Magistrate Judge Upadhyaya

stayed the case pending the D.C. Circuit’s decision in three related cases that would become

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

petition for cert. filed, Kingdom of Spain v. Blasket Renewable Invs. LLC, No. 24-1130. See Sep.

13, 2023 Minute Order.

The case was directly reassigned to the undersigned in December 2023. See Dec. 22, 2023

Minute Order. After the D.C. Circuit issued its decision in NextEra, Spain asked the court to

continue to stay the case while it sought certiorari, ECF No. 97, but the court denied the request,

ECF No. 103.2 Accordingly, in January 2025, the court vacated its referral to Magistrate Judge

Upadhyaya, lifted the stay, and ordered the parties to submit supplemental briefing on the effect

of the NextEra decision on the present case. See Jan. 27, 2025 Minute Order; ECF No. 103. The

parties submitted their supplemental briefs, ECF Nos. 104, 105, 108, 109, and several notices of

supplemental authority and responses, ECF Nos. 110 to 114. The court also accepted an amicus

brief from the European Commission. ECF No. 107. The matter is now fully briefed and ripe for

resolution.

2 Spain filed its petition for certiorari in May 2025. See Kingdom of Spain v. Blasket Renewable Invs. LLC, No. 24-1130 (U.S. May 1, 2025).

4 II. LEGAL STANDARDS

A. Federal Rule of Civil Procedure 12(b)(1)

“Federal courts are courts of limited jurisdiction,” and it is generally presumed that “a cause

lies outside [of] this limited jurisdiction.” Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S.

375, 377 (1994). Under Federal Rule of Civil Procedure

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Milliken v. Meyer
311 U.S. 457 (Supreme Court, 1941)
Durfee v. Duke
375 U.S. 106 (Supreme Court, 1963)
Argentine Republic v. Amerada Hess Shipping Corp.
488 U.S. 428 (Supreme Court, 1989)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Erickson v. Pardus
551 U.S. 89 (Supreme Court, 2007)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Thomas, Oscar v. Principi, Anthony
394 F.3d 970 (D.C. Circuit, 2005)
Mannington Mills, Inc. v. Congoleum Corporation
595 F.2d 1287 (Third Circuit, 1979)
In Re Sealed Case
825 F.2d 494 (D.C. Circuit, 1987)
Green Ex Rel. SG v. Stuyvesant
505 F. Supp. 2d 176 (District of Columbia, 2007)
Harris v. VAO Intourist, Moscow
481 F. Supp. 1056 (E.D. New York, 1979)
Morrow v. United States
723 F. Supp. 2d 71 (District of Columbia, 2010)
Steel Co. v. Citizens for a Better Environment
523 U.S. 83 (Supreme Court, 1998)
Chevron Corporation v. The Republic of Ecuador
795 F.3d 200 (D.C. Circuit, 2015)
Hurd v. District of Columbia
864 F.3d 671 (D.C. Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Infrastructure Services Luxembourg S.A.R.L. v. Kingdom of Spain, Counsel Stack Legal Research, https://law.counselstack.com/opinion/infrastructure-services-luxembourg-sarl-v-kingdom-of-spain-dcd-2025.