The State as a Respondent in Central and Eastern European Investment Arbitrations

2011 ◽  
Vol 13 (1-2) ◽  
pp. 93-110
Author(s):  
Joanna Gomula

AbstractHersch Lauterpacht would have welcomed the development of international investment law and the surge in investor-State arbitrations. However, he may have been surprised at the extent of the erosion of the perception of the State as a sovereign on the international plane, which has been occurring in recent years. This article examines some international investment arbitrations in which Central and Eastern European States have been involved. It points out the factors that make these States particularly vulnerable as respondents and contains an overview of the different approaches taken by investment tribunals in these cases.

Author(s):  
Jorge E. Viñuales

This chapter addresses the challenges posed by the practice of international investment law to the conventional theory of the sources of international law. After a brief overview of the main ‘sources’ of ‘international investment law’, the chapter examines three challenges to this basic understanding, which arise from the need to account for the domestic laws governing different aspects of foreign investment transactions, the detailed jurisprudential norms generated by investment tribunals to specify broadly formulated norms, and the norms of general international law expressing the sovereignty of the State. For each category of norms, the chapter selects several problems that put the most widely accepted understanding of the sources of international law to test. It then explains why the problems examined have potentially important practical implications. The chapter concludes with some observations on the interactions between practice and the theory of the sources of international law.


2019 ◽  
Author(s):  
Alexandra Schuppli

The public discussion on the legitimacy of international investment law requires a reevaluation of the concept of state sovereignty in international investment law. The monograph sets out different concepts of an a priori precedence of the interests of the state over the interests of the investor and vice versa. Furthermore, it describes different models of reconciling these interests by way of giving the state a margin of discretion. In particular, the transfer of the margin of appreciation doctrine to international investment law, as well as the concept of empiric and normative deference, are the focus of this monograph. Finally, the author explores how investor-state arbitration achieves a reconciliation of interests by way of interpreting and applying rules of international investment law without the need to apply concepts from other legal systems. Based on these findings, the author evaluates different development trends in the drafting of investment treaties.


Author(s):  
Edward Guntrip

This chapter discusses the extent to which contemporary approaches to jurisdiction can be applied to hybrid exercises of state and non-state authority in international investment law. Relying on theories of relative authority and transnational law, it demonstrates that jurisdiction needs to be reformulated to capture exercises of hybrid authority in international law. If jurisdiction cannot address hybrid authority, it will continue to overlook significant exercises of authority within international investment law. Based on how hybrid authority functions in international investment law, the chapter then highlights that the role of the state in international law has altered from being a welfare state to a competition state. Yet, the jurisdictional framework has not adapted to the altered function of the state. Hence, despite the common use of hybrid authority in international investment law, it cannot be accommodated within the jurisdictional framework.


Author(s):  
Salacuse Jeswald W

This chapter examines the state of international investment law that exists in the absence of an applicable treaty, as that law remains an important foundation for the international law governing investments. One of the purposes of law is to protect the legitimate interests of persons, groups, and states, and to provide a mechanism for resolving disputes when those interests are in conflict. In any international investment transaction, there are three primary parties in interest: the investor, the host country in which the investment is made, and the home country of the investor. Each party ordinarily uses laws and legal devices to advance its perceived interests. The chapter then explores the sources of international law, as well as customary international law and general principles of law governing international investment. It also looks at customary international law on expropriation and breach of state contracts.


Author(s):  
Carlo de Stefano

This book aims to clarify, critically discuss, and propose solutions for the application of international rules of attribution of conduct to States under public international law and international investment law. In a nutshell, the issue is that of the applicability of the principles of ‘attribution’ to States of acts that are in breach of their obligations under international custom or international treaties, with a focus on their commitments pertaining to the treatment of foreign investors under international investment agreements (IIAs), mostly bilateral investment treaties (BITs), and their application by arbitral tribunals. Of special interest and the object of extensive debate within this context is the responsibility of States when the alleged breach has been committed not by the State itself through its organs, but by entities which have separate legal personality under domestic law, which, nevertheless, may engage the responsibility of the State under international law, such as State-owned enterprises (SOEs). The book addresses the relevant issues in a systematic way, approaching them first in general terms on the basis of the Draft Articles on Responsibility of States for Internationally Wrongful Acts (ARSIWA) on attribution, finalized by the International Law Commission (ILC) in 2001, and proceeding thereafter to the specifics of international investment law, based on an accurate examination of the law, practice, and case law, with full knowledge and consideration of the academic debate. To this extent, the book submits that the general principles on attribution are fully applicable within international investment law, which is not a closed system governed by different principles, and that tribunals have to apply them as they generally do.


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