The court affirmed its jurisdiction to recognize ICSID arbitration awards against a sovereign state, ruling that sovereign immunity does not apply to recognition proceedings under the ICSID Convention.

Atan Mustaffa Yussof Ahmad J:

[1] In this case, the Von Pezold family seeks recognition of ICSID arbitration awards against the Republic of Zimbabwe, a matter intertwining international law with sovereign interests. The heart of the dispute concerns expropriated properties, raising critical questions about the enforceability of international arbitration awards in domestic courts. The Republic of Zimbabwe challenges this Court's jurisdiction, highlighting the complex interplay between international agreements and national laws. My task is to navigate these legal intricacies, ensuring a fair and just resolution in accordance with the principles of law. This judgment will not only resolve a specific dispute but also contribute to the broader dialogue on international law and state sovereignty.

Background Facts

[2] The parties in this matter primarily consist of the Von Pezolds as the Plaintiffs, and the Republic of Zimbabwe as the Defendant.

[3] The Plaintffs originally held an 86.49% interest in three Zimbabwean companies - Border Timbers Limited, Border International (Private) Limited, and Hangani Development Co (Private) Limited - collectively referred to as the "Border Companies." Both the Plaintffs and the Border Companies had substantial investments in three large agricultural estates in Zimbabwe: Forrester Estate, Border Estate, and Makandi Estate.

[4] Between 1980 and 2000, the Defendant carried out land reforms under its Land Reform Programme ("the Land Reforms"), aimed at modifying the ethnic distribution of land ownership. These reforms resulted in the expropriation of various properties associated with the aforementioned estates between 2000 and 2007.

[5] Consequently, two separate but related arbitration cases were initiated. On 6 November 2010, the Plaintffs filed a Request for Arbitration against the Defendant with the International Centre for Settlement of Investment Disputes ("ICSID"). The arbitral tribunal was established pursuant to the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States ("ICSID Convention"). This arbitration case is designated as ICSID Case No ARB/10/15, on 6 November 2010. They invoked the Germany- Zimbabwe Bilateral Investment Treaty ("German BIT") signed on 29 September 1995, and the Switzerland-Zimbabwe BIT signed on 15 August 1996 ("Swiss BIT"). These arbitration proceedings will be referred to as the "Von Pezold Arbitration".

[6] The Border Companies began the second arbitration, identified as ICSID Case No ARB/10/25, on 3 December 2010 under the Swiss BIT ("Borders Arbitration"). Although the focus of both arbitrations was on identical losses related to the Border Estate, they were not formally consolidated.

[7] On 28