On December 9, 2004, Said Musa, the Prime Minister of Belize, signed a confidential agreement under which Belize agreed to serve as the guarantor of a loan made to a Belizean health services provider by the Bank. By 2007, that health services provider was in default, making Belize liable for the outstanding loan balance. Pursuant to a March 23, 2007 settlement agreement, Belize agreed to pay the debt in full but under pressure from public protests, Belize refused to make any payment pursuant to the settlement agreement with the Bank.
Following Belize's default, the Bank--in accordance with a dispute resolution clause included in the settlement agreement--began arbitration proceedings against Belize in London, England, under the Rules of the London Court of International Arbitration (LCIA). Because Belize largely declined to participate in the early stages of the arbitration, however, the LCIA had to step in and appoint Belize's arbitrator in Belize's stead. The LCIA nominated Zachary Douglas as Belize's member of the arbitral tribunal. *1109
In March 2012, five years after Douglas's initial appointment, Belize challenged Douglas's continued service on the arbitral tribunal.
Belize questioned Douglas's impartiality as a member of the arbitral tribunal. The LCIA then created a three-member "Division" to consider Belize's challenges. Belize Bank Ltd. v. Gov't of Belize, Case No. 81116 (London Ct. Int'l Arb. 2012). The Division rejected both of Belize's alternatives. Id. at 11-18. Belize did not take the Division's...