U.S. investors bring arbitration proceedings against Costa Rica

June 21st, 2013 (InsideCostaRica.com) A group of U.S. investors has begun arbitration proceedings against the government of Costa Rica under the auspices of the Central American Free Trade Agreement (CAFTA).

 

The investors claim they had invested in the building of luxury homes in Playa Grande de Santa Cruz, Guanacaste between 2003 and 2007, but beginning in 2006 began to receive notices from Costa Rican authorities that the government intended to expropriate their oceanfront land.

 

The group is now seeking compensation from Costa Rica to offset their lost investments.

 

“The investors do not question the sovereign right of Costa Rica to expropriate land, in good faith, for a valid public purpose.  They just want to receive the fair market value of the land they have been forced to resign, as established by CAFTA, and as customary in international law,” said Vianney Saborio, an attorney representing the group.

 

According to documents, Costa Rica authorities decided to expropriate the land in order to create a national park that includes the nesting areas of leatherback turtles, which are in danger of extinction.

 

The investors claim that the government failed to compensate them at fair market value for the land that was expropriated from them.

 

Todd Weiler, another attorney representing the group, claims the group has been waiting for a resolution on the matter for eight years, and that the investors continue to be forced to pay property tax on their former properties.

 

Saborio said that the arbitration process was begun at the International Center for Settlement of Investment Disputes, part of the World Bank based in Washington, D.C.

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  • georgechapogas

    besides the fact that costa rica will lose a boatload of money other investors will treat costa rica like the plague. that is exactly what the stinking hippies want.

    • SirVivor

      I would love to know more about the “stinking hippies” since I assumed they hadn’t existed since the 60′s and had no idea there were any around – especially in CR. So please enlighten us as to who they are and why they smell bad.

      • georgechapogas

        what are you ? blind? they grew up and became teachers, government employees and professors. they stink because they spout ignorant crap and ruin children and the world with their stupid dependency ideas

        • SirVivor

          Wow … that is so enlightened. Thanks so much for sharing this valuable information and helping us to understand your world where teachers, government employees and professors are also “stinking hippies”. I will make sure to have my “stinking hippies” radar on when I am near a university so I don’t succumb to their “stupid dependency ideas”.

          • georgechapogas

            quite wise considering how many people and countries they have crippled.

  • Aitor Xaranga

    Another botched decision by the CR government which NEVER stops to consider the CONSEQUENCES before embarking on a decision. Not good! If this arbitration is favorable to the investors, a shipload of them are coming this way with bloody knives!

    • curious

      The motto for Costa Rica’s legislators should be “Ready, Fire, Aim”!

    • georgechapogas

      …. hopefully they can pay for it with a stinking hippie tax. start by doubling tuition at the dysfunctional universities where the urchins learn the lies they spout.

  • K Schnelle

    Hey all you commenters who think you know it all – don’t forget it was the U.S. that forced CAFTA on them in the first place. We’re just now beginning to see the effects of it on the countries the U.S. obviously wanted to control for their own greedy purposes. I would say the U.S. is complicit in this. Go read history before you begin spouting off as another spoiled North American. You’re no better.

    • georgechapogas

      yeah trade is such a bummer man. you are a seriously screwed up person.