Applicable Law in International Investment Disputes by Taida Begic

By Taida Begic

This e-book offers a complete evaluation of all suitable elements of the difficulty of acceptable major legislation within the context of investor/State arbitration. it's a comparative survey of either the overseas heart for cost of funding Disputes (ICSID) and non-ICSID arbitral perform. The appropriate noticeable legislation represents a big factor in funding disputes because it determines the foundations of legislations that are meant to be utilized to the benefits of the dispute. This examine demonstrates the necessity for a dialogue at the acceptable legislations prior to analyzing the advantages of the case, because it seems to be non-existent in so much arbitral awards. the writer supplies an intensive survey of number of legislation clauses as present in direct agreements among events and in multilateral or bilateral funding treaties. in addition, the writer analyzes the subsequent matters: stabilization clauses in funding agreements, the applying of the residual rule (if events did not agree at the acceptable law), the specified place of the Iran-US Claims Tribunal and diverse annulment judgements.

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67. 70 See footnote 17 in para. 67. 71 Para. 68. 72 Para. 68. 73 Para. 69. 74 Para. 70. 75 Accordingly, the claim was dismissed. In Maffezini the Tribunal operated under a combined choice of law clause contained in the BIT. The Award lacks a preliminary discussion on the applicable law. To identify the legal framework under which the Tribunal has to operate is especially necessary and helpful in case of such a combined choice of law clauses. The Tribunal simply proceeded to apply the host State’s law together with EEC law to the relevant issues.

185. , The ICSID Convention: A Commentary, Cambridge University Press (2001) at pp. 563-564. 22 Bowett, D. , State Contracts with Aliens: Contemporary Developments on Compensation for Termination or Breach , 59 BYIL 49 (1988) at p. 50. 23 If the contract does not provide an answer to some question the arbitral tribunal can treat it as an absence of agreement on the applicable law concerning that particular question. In accordance with the prohibition on a finding of non liquet, which is generally accepted in international adjudication, the tribunal cannot refuse to answer some questions.

The Award lacks a preliminary discussion on the applicable law. To identify the legal framework under which the Tribunal has to operate is especially necessary and helpful in case of such a combined choice of law clauses. The Tribunal simply proceeded to apply the host State’s law together with EEC law to the relevant issues. The question that could be raised is whether the Tribunal may restrict itself to applying one of several sources listed in the clause on applicable law under which it operates.

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