The decision is in with the case garnering much interest across the CARICOM region.

Would Michael Lee-Chin take on and get the better of the Government of the Dominican Republic?

The Executive Chairman of the NCB Financial Group, Michael Lee-Chin has been awarded tens of millions of United States’ dollars having obtained a final award from a United Nations Commission on International Trade Law (UNCITRAL) Arbitral Tribunal.

This after Lee Chin’s initial success having obtained a favourable Partial Award in July 2020.

The case centres around an investment Lee-Chin made in Lajún Corporation, a Dominican Republic company which held a long-term concession contract to manage a landfill in Santo Domingo.

This concession was managed by his son, Adrian Lee-Chin, who served as Lajun’s general manager.

Contention arose when in 2017, the Dominican Republic took military control of the landfil as well as brought local actions to nullify and terminate the concession based on an alleged environmental emergency.

This saw the Jamaican-Canadian billionaire securing an investment arbitration against the Dominican Republic due to what he saw as that country’s multiple violations of the Treaty which included various arbitrary acts intended to force him to operate the landfill without receiving a fair tipping fee.

Here was a case of First Impression under the CARICOM-Dominican Republic Free Trade Agreement.

After more than five years of arbitral proceedings, yesterday, October 6th, 2023, the Arbitral Tribunal issued its Final Award in favour of Lee-Chin.

In the Final Award the Tribunal found that the Dominican Republic violated its obligations under the Treaty regarding expropriation and fair and equitable treatment, as well as breached the Treaty’s umbrella clause. In reparation for these violations, the Arbitral Tribunal ordered the Dominican Republic to pay Lee-Chin in excess of US$43.59 million plus interest.

The Tribunal rejected all remaining jurisdictional objections filed by the Dominican Republic and held that “ the termination of the Concession Agreement was part of a larger effort by the State to actually eject Claimant from the operation of the investment.

The Tribunal further found that “ no pattern of reasonableness or plausible justifications may be discerned in the Dominican Republic’s changing attitudes throughout the investment.”

Commenting on the decision by the Tribunal, Lee-Chin said: “ I am very pleased with the result and I am finally vindicated. I expect the Dominican Republic will immediately satisfy the Final Award and evidence to the investor community, including all Jamaican investors that the Dominican Republic once found liable and honours its international obligations.”

Lee-Chin was initially claiming damages of more than US$300 million and back in 2018, declared that the Dominican Republic does not protect Jamaican businesses investing in the country, leaving them vulnerable.

“The Dominican Republic Government is now taking the position that investors are not protected under the Caricom agreement it signed with Jamaica to protect investors. Jamaican and CARICOM investors have no protection when they invest in the DR.,” he protested five years ago.

Lee-Chin has hit a purple patch. He has set NCB on a new trajectory having purged its senior management team replacing it with executives buying into a mantra of Efficiency, Governance and Customer Service (EGC). He has vowed to see to it that a dividend is paid to NCB shareholders by the end of this calendar year. He is leading from the front as Executive Chairman and now has won this battle with Dominican Republic. What else will Santa be putting in Lee-Chin’s sack this Christmas?