London-listed Emmerson has provided an update on an ongoing litigation process, noting that the International Centre for Settlement of Investment Disputes (ICSID) Tribunal has rejected Morocco’s application.

In May, Morocco applied to the tribunal to have certain jurisdictional objections bifurcated, that is, addressed by the tribunal in a separate, preliminary phase, before evaluating the merits of the claimants’ claims in the arbitration.

The claimants opposed that application and the tribunal held a hearing on June 19, during which the parties made oral submissions regarding whether the tribunal should grant Morocco’s application.

On July 17, the tribunal issued its decision on bifurcation, rejecting Morocco’s application, meaning it will address the country’s objections at the same time as it analyses the merits of the case.

The timing of the next steps in the process up to and including the hearing to address both the jurisdictional element and the merits is yet to be confirmed.

In April last year, Emmerson’s direct and indirect subsidiaries Khemisset UK and Potasse de Khemisset filed a request for arbitration (RFA) with the ICSID.

The claimants filed their memorial in the arbitration, together with documentary, witness and expert evidence, on March 27.

The claimants seek compensation of about $1.22-billion net of local taxes and including interest for the loss and damage they sustained as a result of Morocco’s breaches of its obligations under the agreement between the government of the UK of Great Britain and Northern Ireland and the government of Morocco for the Promotion and Protection of Investments (BIT).

This includes Morocco’s expropriation of the Khemisset project in violation of Article 6(1) of the BIT;  and Morocco’s breach of its obligations to accord the claimants fair and equitable treatment, to provide full protection and security to the claimants and their investments, and to refrain from impairing the claimants’ investments by discriminatory measures under Article 2(2) of the BIT.