Substantive law in investment treaty arbitration : the unsettled relationship between international law and municipal law / Monique Sasson.
2017
K3830 .S27 2017 (Map It)
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Author
Title
Substantive law in investment treaty arbitration : the unsettled relationship between international law and municipal law / Monique Sasson.
Published
Alphen aan den Rijn, the Netherlands : Kluwer Law International, B. V., [2017]
Call Number
K3830 .S27 2017
Edition
Second edition.
ISBN
9789041161031
9041161031
9789041161109 (e-Book)
9789041155757 (web-PDF)
9041161031
9789041161109 (e-Book)
9789041155757 (web-PDF)
Description
xiii, 303 pages ; 25 cm.
System Control No.
(OCoLC)1007311485
Summary
"This new edition of what has rapidly become the pre-eminent work on the role of municipal law in investment treaty arbitration is justified not only by the accelerating appearance of investment treaty awards but also by the continuing, serious flaws in the application of international law by investment treaty arbitral tribunals. As a matter of international law, arbitrators need to be attentive to the circumstances where municipal law supplies the necessary substantive legal rule. ... The author has maintained the overall structure of the first edition and added a new chapter on Article 42 of the ICSID Convention. Certain descriptions and arguments have been rethought and revised to clarify their significance and their applicability. The treatment focuses on the role of municipal law in providing the substance for concepts such as contracts, property rights, and shareholders' rights, which are relevant in the international investment treaty context but are not regulated under international law."--Back cover.
Bibliography, etc. Note
Includes bibliographical references and index.
Record Appears in
Table of Contents
Preface
xi
List of Abbreviations
xiii
Introduction: The Unsettled Relationship Between International Law and Municipal Law
1
I.
International Law Commission and the Role of Municipal Law
1
II.
Barcelona Traction and Renvoi to Municipal Law
3
III.
Investment Treaty Protection and the Continuing Relevance of Municipal Law
8
IV.
Two Categories of Interaction Between International Law and Municipal Law
11
A.
International Law Standing Alone
11
B.
Renvoi to Municipal Law
11
C.
Contract-Treaty Problem
12
V.
Role of Municipal Law in the Investment Treaty Context
12
ch. 1
Attribution under the Law of State Responsibility
15
1.01.
Introduction
15
1.02.
ILC Article 4 and the Meaning of 'State Organ'
18
A.
ILC Article 4 and State Organ
19
B.
Genocide Case, De Facto State Organ and the Role of Municipal Law
24
C.
Investment Treaty Awards
25
1.
Eureko v. Poland and the Question of Separate Personality
25
2.
Bosh International et al. v. Ukraine and the Attribution of Obligations Stemming from Undertakings
28
3.
Salini Costruttori S.p.A. and Italstrade v. Morocco and Noble Ventures v. Romania: The Notion of De Facto Organ
30
1.03.
Para-Statal Entities and the Role of Municipal Law
33
A.
Maffezini v. Spain: The Structural and Functional Tests
36
B.
Encana Corporation v. Ecuador and 'Governmental Nature'
38
1.04.
Investment Treaty Provisions on Attribution: Lex Specialis and the Role of Municipal Law
39
A.
United Parcel Service of America v. Canada
39
B.
Metalclad Corporation v. United Mexican States
41
1.05.
Conclusions
42
A.
State Organs
42
B.
Para-Statal Entities
43
ch. 2
Article 42 of the ICSID Convention and the Relationship Between International Law and Municipal Law
45
2.01.
Introduction
45
2.02.
Relevance of the Historical Background of Article 42(1)
48
A.
Vienna Convention, Articles 31 and 32, and the Principles of Treaty Interpretation
49
B.
Two Antecedent Draft Conventions
51
C.
ICSID Convention: Travaux Preparatoires
52
D.
ICSID Convention: Article 42
59
2.03.
Jurisprudence from Klockner/Amco to Wena
60
A.
Klockner v. Cameroon
60
B.
Amco Asia Corp. v. Indonesia (Amco Asia)
62
C.
Wena Hotels Ltd v. Egypt
64
2.04.
Three Schools of Thought in Light of the ICSID Travaux
66
A.
Complementary/Corrective Interpretation
66
B.
Reisman Interpretation: BITs Require Application of International Law
68
C.
'Tribunal Discretion' Interpretation
70
2.05.
Conclusion
72
ch. 3
Investor Nationality under Municipal and International Law
75
3.01.
Introduction
75
3.02.
Investor Nationality and Municipal Law
76
A.
Investment Treaty Background
76
B.
Nationality and Diplomatic Protection
78
C.
Arbitral Decisions on Investor Nationality
80
1.
Fakes v. Turkey and Effective Nationality of Individuals
81
2.
Tokios Tokeles v. Ukraine and the Question of Tenuous Links to the State of Incorporation
83
3.
Plama Consortium v. Bulgaria, Corporate 'Control', and Denial of Benefits Clauses
86
4.
Ceskoslovenska Obchodni Banka A.S. v. The Slovak Republic ('CSOB v. Slovakia') and the Question of State Control of Corporations
92
5.
AFT v. Slovak Republic and Tenaris S.A v. Venezuela: The Concept of Corporate 'Seat'
93
6.
Soufraki v. United Arab Emirates and Proof of Nationality
97
3.03.
Conclusion
99
ch. 4
From Property to Investment
101
4.01.
Introduction
101
4.02.
Role of International Law in Defining Property
104
A.
European Convention on Human Rights
104
B.
Inter-American Convention on Human Rights
106
C.
1959 Abs-Shawcross Draft Convention on Foreign Investments
107
D.
Harvard Draft Convention on International Responsibility of States for Injuries to Aliens
108
E.
OECD Draft Convention on the Protection of Foreign Property
109
4.03.
Role of Municipal Law in Defining Property
111
A.
PCIJ and the ICJ
111
B.
Investment Treaty Tribunals
112
1.
Intangible Rights
113
a.
Pope & Talbot Inc. v. Canada
113
b.
Encana Corporation v. Republic of Ecuador
114
2.
Contracts
115
a.
In the matter of Revere Copper and Brass Inc. and Overseas Private Investment Corporation
115
b.
Eureko v. Poland
116
c.
Waste Management Inc v. Mexico
117
d.
Emmis International Holding B.V. et al. v. Hungary
118
3.
Legitimate Expectations
119
a.
Tecnicas Medioambientales Tecmed SA v. Mexico
120
b.
Metalclad Corporation v. Mexico
120
c.
Biloune and Marine Drive Complex v. Ghana Investment Centre (and the Government of Ghana)
122
d.
Other Investment Treaty Tribunal Decisions and the ECHR
123
4.04.
Definition of 'Investment'
125
A.
Early Investment Treaties: Multilateral and Bilateral
126
B.
ICSID Convention
128
4.05.
Role of Municipal Law in the Definition, Registration Requirements, and Legal Validity of Investments
A.
Definition of an Investment
1.
Mihaly International Corporation v. Sri Lanka
2.
Fedax v. Venezuela
3.
Salini Costruttori S.p.A. and Italstrade v. Morocco ('Salini v. Morocco')
4.
Mitchell v. Congo
5.
Pantechniki SA Contractors & Engineers v. Albania ('Pantechniki') and 'Inherent Meaning' of Investment
4.06.
Registration Requirements
4.07.
Legal Validity of Investment
4.08.
UNCITRAL Investment Arbitration Proceedings
4.09.
Conclusion
ch. 5
Shareholders' Rights
5.01.
Introduction
5.02.
Shareholders' Rights Pre-Barcelona Traction
A.
Awards Pre-Barcelona Traction
1.
Ruden
2.
Delagoa Bay and East African Railway Company
3.
El Triunfo
4.
Kunhardt & Co
5.
Baesch e Romer v. Venezuela
6.
Alsop Claim
7.
Shufeldt Claim
B.
Treaties Pre-Barcelona Traction
1.
Treaty of Versailles (1919)
2.
Mexican Claims Conventions
3.
Treaty of Peace with Italy (1947)
4.
Algiers Declaration
5.03.
ICJ Judgments on Shareholders' Rights
A.
Barcelona Traction, Light and Power Company Limited
B.
Elettronica Sicula S.p.A
C.
Diallo
5.04.
ILC's Articles on Diplomatic Protection
5.05.
European Court of Human Rights
5.06.
Investment Treaty Disputes
A.
ICSID
B.
NAFTA
C.
Shareholders' Indirect Claims in Investment Treaty Disputes
1.
Loss of Value of Shares
a.
CMS Gas Transmission Company v. Argentina (CMS v. Argentina)
182
b.
Comparlia de Aguas del Aconquija SA and Vivendi v. Argentina (Vivendi II)
184
c.
Azurix Corp. v. Argentina
186
d.
Enron Corp. and Ponderosa Assets L.P. v. Argentina
188
e.
Patovci Banka As and Istrokapital SE v. The Hellenic Republic
190
2.
Claims on Behalf of the Company: GAMI v. Mexico
192
5.07.
Conclusion
193
ch. 6
Treaty Versus Contract Claims, and Umbrella Clauses: When a Contract Breach May Become a Treaty Breach
199
6.01.
Introduction
199
6.02.
History of the Distinction Between Treaty and Contract Claims
202
A.
Draft Conventions or Codifications
202
1.
Garcia Amador Reports on State Responsibility
202
2.
Harvard Draft Convention on International Responsibility of States for Injuries to Aliens (1961) ('The Harvard Draft')
203
3.
Foreign Relations Law of the United States (Restatement 3rd of Foreign Relations Law)
203
B.
Awards and Judgments
205
1.
Affaire Martini
205
2.
Illinois Central Railroad Company (USA) v. United Mexican States
206
3.
International Fisheries Company (USA) v. United Mexican States
207
4.
PCU and the ICJ
207
C.
Principles to Be Drawn from Draft Conventions/Codifications and Awards/Judgments
210
6.03.
Distinction Between Treaty and Contract Claims in International Investment Disputes
213
A.
Aguas del Aconquija-Vivendi and the Separation Between Treaty and Contact Claims
214
B.
Noble Ventures v. Romania and the Violation of the FET Standard
216
C.
Relevance of Contractual versus Governmental Acts
217
D.
Waste Management Inc v. Mexico
219
6.04.
Historical Background of Umbrella Clauses
220
A.
Premise: Abs-Shawcross Draft Convention 1959, First Modern BIT, OECD Draft Convention, and 1998 Draft MAI
222
B.
Outcome: Umbrella Clauses and Draft Conventions
224
6.05.
Four Schools of Thought Concerning Umbrella Clauses
225
A.
'Negative' Interpretation: Societe Generale du Surveillance SA v. Pakistan
225
B.
'Automatic' Interpretation: Fedax N.V. v. Venezuela; CMS Gas Transmission Company v. Argentina; LG&E Energy Corp., LG&E Capital Corp., and LG&E International Inc. v. Argentina
227
C.
'lure Imperii' Interpretation: Pan American Energy LLC and Bp Argentina Exploration Company v. Argentina; El Paso Energy International Company v. Argentina
228
D.
'Enforcement' Approach: Societe Generale Du Surveillance SA v. Philippines
229
6.06.
Umbrella Clauses: Attribution and Parties to the Undertaking
233
6.07.
Assessment of the Four Schools of Thought
235
6.08.
Conclusion
239
Conclusion: The Unsettled Relationship Between International and Municipal Law
243
I.
Necessity of Renvoi in the Investment Treaty Context
245
II.
Renvoi in This Book's Six Chapters
248
III.
Need for Treaty Arbitrators to Apply Municipal Law
251
Appendices
253
Appendix I
Hermann Abs and Lord Shawcross, Draft Convention on Investments Abroad (1959)
255
Appendix II
Treaty Between the Federal Republic of Germany and Pakistan for the Promotion and Protection of Investments (1959)
259
Appendix III
Harvard Draft Convention on the International Responsibility of States for Injuries to Aliens (1961)
271
Appendix IV
Organisation for Economic Co-operation and Development Draft Convention on the Protection of Foreign Property (1967)
277