Riverside Coffee LLC v Republic of Nicaragua
Riverside Coffee LLC filed a US$286 million ICSID arbitration claim against the Republic of Nicaragua under the DR-CAFTA treaty, alleging expropriation and mistreatment following the occupation of its avocado farm during civil unrest in 2018.
The tribunal dismissed all claims, finding that Republic of Nicaragua’s actions were taken in good faith and fell within the treaty’s “essential security interests” exception, reinforcing HKA’s expertise in high-value investor-state disputes.
Brief
Riverside Coffee LLC, a U.S. investor, filed a US$286 million ICSID claim against the Republic of Nicaragua under the DR-CAFTA treaty. The dispute centred on alleged expropriation and mistreatment following the occupation of Riverside’s avocado farm during civil unrest in 2018.
What we did
HKA experts and partners Timothy Hart and Kenneth Kratovil, and associate director Matt Lupo, delivered valuation, economic damages, and forensic analysis. The engagement included expert reporting and testimony on behalf of the respondent. The tribunal dismissed the claims, concluding that Nicaragua’s actions were taken in good faith and fell within the treaty’s “essential security interests” exception.
Being successful serving as damages experts in investor-state arbitrations requires the ability to study the relevant market, synthesize the facts and present a clear picture of the valuation of the investment to the tribunal. In this case, our team delivered strong testimony regarding valuation and forensic analysis. We were pleased to have helped deliver an excellent result for our client, the Republic of Nicaragua.”
Outcome
The tribunal dismissed Riverside’s claims, concluding that Nicaragua’s actions were taken in good faith and fell within the treaty’s “essential security interests” exception.
This case underscores HKA’s ability to deliver rigorous valuation and damages analysis in investor-state disputes. It also highlights the firm’s expertise in supporting sovereign states with valuation and forensic analysis in high-stakes international arbitration.
Find out more: US$286 million investor-state claim brought by Riverside Coffee LLC
