Mexico Will Appeal Ruling in Metalclad Case

Metalclad Corp. said Friday that Mexico intends to appeal further a North American Free Trade Agreement finding that the Mexican government wrongly expropriated Metalclad’s landfill and failed to give the company fair and equitable treatment as required under the treaty.

The Newport Beach hazardous waste disposal company said it also intends to appeal a British Columbia Supreme Court ruling, which reduced a NAFTA panel’s $16.7-million award by limiting Metalclad’s recovery of legal fees and costs in the litigation to 75%.

Metalclad said it also will seek to recapture two years of interest on the award. Interest continues to accrue at a rate of about $86,000 a month, the company said.

Metalclad had sued the Mexican government in 1997, alleging that the former governor of San Luis Potosi state effectively expropriated the landfill by declaring it part of an ecological zone. A NAFTA tribunal agreed and awarded $16.7 million.

Mexico appealed to the neutral British Columbia court, which affirmed the liability finding early this month. Metalclad said Mexico now intends to appeal next week to the British Columbia Court of Appeal to try to overturn the ruling.