UN International Court of Justice Affirms Nicaraguan Sovereignty Over San Juan River...

UN International Court of Justice Affirms Nicaraguan Sovereignty Over San Juan
River and Country's Right to Regulate Traffic by Costa Rican Vessels; ICJ
Upholds Ban on Costa Rican Military/Police Use of River
Ruling on case brought in 2005 upholds 1858 treaty between Nicaragua and Costa
Rica; Foley Hoag partner Paul Reichler argued key points for Nicaragua at ICJ

WASHINGTON and THE HAGUE, Netherlands, July 14 /PRNewswire/ -- The
International Court of Justice in The Hague has today unanimously reaffirmed
Nicaragua's exclusive sovereignty over the San Juan River, which forms the
boundary between Nicaragua and Costa Rica, as well as Nicaragua's right to
regulate Costa Rican commercial transport on the river.

The ruling, handed down July 13 in a case brought by Costa Rica against
Nicaragua in 2005, also unanimously upholds Nicaragua's ban on use of the
river by Costa Rican police and military forces.

Ambassador Carlos Arguello, Nicaragua's Agent in the case before the ICJ,
said, "This is a great day for Nicaragua. We are extremely pleased that the
International Court of Justice agreed with the most important of our arguments
- that the San Juan River is under the exclusive sovereignty of Nicaragua,
that Nicaragua retains the right to regulate commerce on a river wholly within
its territory, and that Costa Rica cannot in any way use military or police
authorities on a river under Nicaraguan sovereignty. As neighboring nations,
we should both be happy that this issue has been equitably settled, paving the
way for improved relations and cooperation between our two countries."

Paul Reichler, a partner in the Washington, DC, office of Foley Hoag LLP,
represented Nicaragua and argued several essential points of the case,
including the country's right to regulate commerce and to keep Costa Rican
military and police authorities off the San Juan River.

"This is a tremendous victory for Nicaragua," Mr. Reichler said. "The Court
not only ruled unanimously that Nicaragua has the right to regulate Costa
Rican commercial navigation as well, but found, also unanimously, that the
specific regulations on that navigation by Nicaragua were reasonable and
lawful. Equally important, the Court limited Costa Rica's rights to commercial
navigation - rights Nicaragua has always acknowledged - and held unanimously
that Costa Rica has no right to exercise any police powers whatsoever on the
river. The ICJ ruled that Costa Rica may not put police vessels on the river."

Costa Rica brought the dispute to the ICJ in October 2005, seeking the right
to police the river, allegedly to prevent illegal immigration flowing from
Nicaragua; Costa Rica also challenged Nicaragua's power to regulate commercial
transport on the waterway.

For its part, Nicaragua asserted the need to monitor shipping on the river due
to concerns such as environmental protection, navigation safety, stopping
contraband, and pollution control. Although the heavily jungled banks are
settled on the Costa Rican side, the Nicaraguan border is at the edge of a
lush and extensive wildlife preserve.

The San Juan River has been a source of exotic adventure travel for several
hundred years. Following a trip in 1866, Mark Twain rhapsodized that the
winding, rainforest waterway was home to a natural wonderland of "dark
grottos, fairy festoons, temples, columns, pillars, towers, pilasters,
terraces, pyramids, mounds, domes, walls, in endless confusion of vine work."

Costa Rican and Nicaraguan travel boats still ply the river as part of a
popular eco-tourism industry.

An 1858 treaty gave Nicaragua complete sovereignty over the San Juan River
because Nicaraguan territory had once extended south of the river into what is
today Costa Rica. The San Juan River runs about 205 kilometers (127 miles)
from Lake Nicaragua to the Caribbean Sea; the eastern two-thirds of the
river's course forms part of the international border between Nicaragua and
Costa Rica.

Before the treaty the river was for a time a vital transportation link between
the East and West Coasts of the United States: during the California Gold
Rush, it was often easier to travel by water and land across Central America
than through the dangerous and unsettled central portion of what is now the
United States.

The 1858 treaty has faced challenges in the past: notably, U.S. President
Grover Cleveland Alexander was called upon in 1888 to arbitrate a dispute
between the two countries. He ruled, among other things, that while Costa Rica
could use the San Juan for commerce it could not put military craft on the
river.

Working together with Mr. Reichler were Lawrence Martin, a partner, Clara
Brillembourg, an associate, both of Foley Hoag's Washington, DC office.
Nicaragua's distinguished legal team also included Sir Ian Brownlie of the
United Kingdom, Professor Alain Pellet of France, Professor Antonio Remiro
Brotons of Spain, and Professor Stephen McCaffrey of the United States.

Mr. Reichler specializes in representing nations before the International
Court of Justice and other international judicial and arbitral tribunals
around the world. He is currently working on behalf of several other South
American governments, including Uruguay, Ecuador, Bolivia and Venezuela, in
international legal disputes.

About Foley Hoag
Foley Hoag LLP is a leading law firm in international law, litigation, and
arbitration of disputes between sovereign States, and between sovereign states
and foreign investors. Foley Hoag also represents foreign governments in
litigation before the federal and state courts of the United States. The
firm's 250 lawyers are located in Washington, DC, and Boston. For more
information visit www.foleyhoag.com.

Contact: James Bourne 212-262-7470 jimbournenyc@aol.com
Allan Ripp 212-262-7477 arippnyc@aol.com

SOURCE Foley Hoag LLP

James Bourne, +1-212-262-7470, jimbournenyc@aol.com, or Allan Ripp,
+1-212-262-7477, arippnyc@aol.com