A cautionary tale of settlement negotiations: Azpetrol v. Azerbaijan
It is always satisfying for an academic when research interests contribute to teaching. So, as I began teaching first year contracts this year, I read the 8 September 2009 award in Azpetrol International Holdings B.V., Azpetrol Group B.V. and Azpetrol Oil Services Group B.V. v. The Republic of Azerbaijan, ICSID Case No. ARB/06/15 (Azpetrol) with particular interest. The question before the tribunal in Azpetrol was whether an exchange of emails between counsel for the parties resulted in a binding settlement agreement. Applying English contract law principles, the tribunal found that there was a binding settlement agreement. As a result, the tribunal held that it lacked jurisdiction under [...]
The Swiss Rules of International Arbitration – Five Years of Experience
The Swiss Rules of International Arbitration (the “Swiss Rules”) entered into force on 1 January 2004. These rules were originally adopted by the Chambers of Commerce and Industry of Basel, Bern, Geneva, Ticino, Vaud and Zurich, and, most recently, Neuchâtel (the “Chambers”).In the past, these Chambers each had their own, different set of arbitration rules for international matters. Institutional arbitration in Switzerland was therefore sometimes perceived as fragmented, especially by foreign users. This led the Chambers to unify their rules and provide for harmonized administration of arbitration.
Since their entry into force five years ago, the Swiss Rules have been well receiv [...]
Chevron goes all-in against Ecuador; New claim reflects latest BIT usage
For those wondering what the state of the art looks like in the realm of bilateral investment treaty arbitration, you could do worse than browse the Notice of Arbitration filed yesterday in the Chevron v. Ecuador case.
The underlying dispute is a much-publicized one, tracing its roots to a long-running multi-forum battle over liability for environmental damage arising out of Amazonian oil production. Yesterday, Chevron upped the ante by suing Ecuador for various breaches of the US-Ecuador BIT in relation to the government’s posture towards (and alleged interference in) a massive civil claim which could put Ecuador on the hook for many Billions in environmental remediation costs [...]
Section 69 and the “Interventionism” of English Courts
- By Phillip Capper, White & Case LLP,
for White & Case
There is a lingering perception amongst the international arbitration community that English courts tend to be more interventionist in relation to arbitration proceedings and awards compared to some of their continental counterparts. In reality, English courts are much less interventionist than some imagine, despite provisions such as section 69 of the Arbitration Act 1996 which allows an appeal to the English courts on a question of law arising out of an award. We will see below that there is no such right to appeal in the vast majority of international arbitrations seated in England.
The recent judgment by Gloster J in Shell Egypt West Manzala GmbH and Shell Egypt West Qantara [...]
Judges, Arbitrators, and the Secondary Functions of Adjudication
While litigation and arbitration both entail binding adjudication, the traditional functions of judges and arbitrators diverge in fundamental respects. While judges resolve individual disputes, they also serve a number of secondary functions. For example, in the process of deciding cases, they also supply guidance to parties in future disputes, uphold the public interest, and contribute to progressive development of the law. By contrast, the functions of arbitrators traditionally occupy a narrower range. Deriving their jurisdiction from private agreements, functioning outside an integrated system of precedent, and operating under a strong presumption of confidentiality, arbitrators generally [...]
Gifter’s Remorse: The Beaverbrook Art Gallery arbitration
If you ever have the pleasure of visiting Fredericton, New Brunswick – the charming Canadian town where I grew up – you’ll want to spend an afternoon at the Beaverbrook Art Gallery.
Indeed, thanks to the outcome of a recent arbitration – which has just been upheld on appeal – you’ll see a number of remarkable paintings, including works by J.M.W. Turner and Lucian Freud, which had been at the centre of a struggle between the Gallery and a UK Foundation claiming ownership of the paintings.
I can’t do justice to the story in this space; however, it’s a fascinating one involving the former Lord Beaverbrook, who was raised in New Brunswick, but made his name in the United Kingdom as [...]
