{"id":6490,"date":"2025-11-06T15:31:14","date_gmt":"2025-11-06T20:31:14","guid":{"rendered":"https:\/\/laudenlaw.com\/?p=6490"},"modified":"2025-11-06T15:47:01","modified_gmt":"2025-11-06T20:47:01","slug":"lauden-wins-international-arbitration-and-saves-usd-215-million-for-the-state","status":"publish","type":"post","link":"https:\/\/laudenlaw.com\/en\/lauden-wins-international-arbitration-and-saves-usd-215-million-for-the-state\/","title":{"rendered":"Lauden Wins International Arbitration and Saves USD 215 Million for the State"},"content":{"rendered":"

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On September 26, 2025, the Ecuadorian State achieved a landmark victory in an investment arbitration filed by the U.S. company Lynton Trading Ltd.<\/strong> before the Permanent Court of Arbitration (PCA)<\/strong>.
The claim, submitted under the Bilateral Investment Treaty (BIT)<\/strong> between Ecuador and the United States, sought compensation of USD 214 million plus interest<\/strong> for alleged damages resulting from regulatory measures related to the prohibition of gambling in the country.<\/p>\n

The State\u2019s Defense: A Collaborative Effort<\/strong><\/h4>\n

The Office of the Attorney General of the State<\/strong>, representing Ecuador, led the defense strategy with the support of Winston & Strawn LLP (Paris)<\/strong> and Lauden Consulting Americas<\/strong>.<\/p>\n

The Lauden team was led by Francisco Xavier Paredes, Ph.D.<\/strong>, an attorney whose practice focuses on international law, investment, international arbitration, dispute resolution, constitutional protection actions, and public contracts<\/strong>.<\/p>\n

The defense centered on strong jurisdictional objections<\/strong>, demonstrating that Lynton Trading<\/strong> did not conduct genuine economic activities within U.S. territory. This allowed the invocation of the denial of benefits clause<\/strong> established in the BIT, interpreted in light of public international law<\/strong> and Nevada corporate law (U.S.)<\/strong>.<\/p>\n

The Arbitral Award: A Victory for Ecuador<\/strong><\/h4>\n

The arbitral tribunal upheld the defense\u2019s arguments and concluded that it lacked jurisdiction<\/strong> to hear the dispute, as it did not involve an investment protected under the treaty.<\/p>\n

This outcome not only marks the definitive termination of the process but also represents:<\/p>\n