In a landmark ruling issued on August 19, 2026, the Dominican Republic has emerged fully victorious in an international investment arbitration case brought by French investor Yves Martine Garnier, who sought over $100 million in damages from the Dominican state — a sum equivalent to roughly 5.88 billion Dominican pesos.
Administered by the Permanent Court of Arbitration, the dispute originated from the termination of a solid waste management and collection concession contract between the Santo Domingo Este municipal government and EGTT Dominicana, a company fully owned by Garnier. Arbitration proceedings were formally launched in October 2021, invoked under Article 7 of the 1999 bilateral investment promotion and reciprocal protection agreement between France and the Dominican Republic.
In its final decision, the arbitral tribunal confirmed that the cancellation of the concession contract was fully valid under Dominican national law, noting that EGTT Dominicana had failed to meet the required service standards outlined in the original agreement. The tribunal further ruled that the evidence and arguments presented by Garnier did not satisfy the legal threshold required to prove that the Dominican Republic had violated its international investment obligations under the bilateral treaty.
Yayo Sanz Lovatón, the Dominican Minister of Industry, Commerce and Micro, Small and Medium Enterprises (MSMEs), emphasized the far-reaching importance of the ruling. He framed the victory as a dual achievement: it not only safeguards billions in public funds from improper claims, but also reaffirms the Dominican Republic’s longstanding commitment to upholding its legal obligations to foreign investors operating within its borders.
Lovatón added that the country consistently honors its international commitments, but will remain unwavering in defending the state against unsubstantiated claims that lack solid legal grounding. The Dominican defense effort was initially coordinated by the Ministry of Industry, Commerce and MSMEs (MICM) in partnership with the Santo Domingo Este municipal government. The Ministry of Justice later joined the legal team, and under the country’s Law 80-25, will take over permanent representation of the Dominican state in all future investment arbitration proceedings. International law firm Foley Hoag LLP, operating out of its Washington, D.C. office, provided specialized legal support to the Dominican team throughout the proceedings.
Government officials noted that this successful outcome is a core component of the administration’s broader strategy: to proactively defend the country’s interests in cross-border investment disputes, protect critical public resources, and strengthen the legal certainty and stable investment climate that are essential to attracting and retaining high-quality foreign investment. For the Dominican Republic, this ruling stands as both a major financial win and a significant legal milestone, cementing the state’s position in upholding the rule of law in international investment matters.