Dominican Republic wins international arbitration case against Yves Martine Garnier
Santo Domingo.- The Dominican Republic won an international investment arbitration case brought by French investor Yves Martine Garnier, whose claims against the Dominican State exceeded US$100 million, equivalent to more than RD$5.88 billion.
The Arbitral Tribunal issued its ruling on August 19, 2026, dismissing all of Garnier’s claims under the 1999 agreement between France and the Dominican Republic on the promotion and reciprocal protection of investments.
The case, administered by the Permanent Court of Arbitration, stemmed from the termination of a concession contract between EGTT Dominicana, Garnier’s company, and the Santo Domingo Este municipal government for the management and collection of solid waste.
The arbitration proceedings began in October 2021 under Article 7 of the bilateral investment agreement.
In its decision, the tribunal determined that the termination of the concession was valid under Dominican law, citing deficiencies by EGTT Dominicana in providing the contracted service.
The tribunal also found that the facts presented by Garnier did not meet the required standard to establish a violation of the Dominican Republic’s international obligations under the investment treaty.
Dominican State avoids more than US$100 million claim
Industry, Commerce and MSME Minister Yayo Sanz Lovatón highlighted the significance of the ruling, saying that defending the State involves not only protecting public funds but also demonstrating the country’s commitment to honoring its obligations to foreign investors.
He said the Dominican Republic fulfills its international commitments while maintaining a firm position when claims against the State lack legal grounds.
The Dominican defense was initially coordinated by the Ministry of Industry, Commerce and MSMEs (MICM) together with the Santo Domingo Este municipal government. The Ministry of Justice later joined the proceedings and, under Law 80-25, will represent the Dominican State in investment arbitration cases.
The Dominican Republic was assisted in the proceedings by international law firm Foley Hoag LLP, through its Washington, D.C., office.
The government said the outcome forms part of its strategy to actively defend the country in international investment disputes, protect public resources and strengthen the legal certainty and investment climate needed to attract and retain foreign investment.
The ruling represents a significant legal and financial victory for the Dominican Republic, as the State successfully defended itself against claims exceeding US$100 million in an international arbitration proceeding.
