The “contribution of assets” requirement of the Salini test was often overlooked by commentators and tribunals, probably due to its “I-know-it-when-I-see-it” nature. The recent award in KT Asia Investment Group B.V. v Republic of Kazakhstan, however, demonstrates that a failure to meet the contribution requirement may put to rest a claim of an offshore company used to conceal the identity of its owner.
It is widely recognized that under Article 25 of the ICSID Convention an investment must involve a “contribution” of assets. As explained by Douglas (para. 273), the prior contribution of assets into the economy of the host state is a natural quid pro quo for the state to accord th [...]
Investment arbitration under investment treaties between EU member states is a hot topic, in particular given the EU Commission’s strong views on the subject: As previously discussed here, the Commission has intervened in arbitrations in support of the position that the arbitral tribunal lacked jurisdiction to hear the dispute. One such matter was Eureko v. Slovakia, apparently the first case where this issue was brought before a state court, when Slovakia challenged an interim award confirming the jurisdiction of the tribunal in the Frankfurt Court of Appeals (Oberlandesgericht). The Frankfurt court in May 2012 upheld the award (see here and here for comments).
The matter proceeded to the G [...]
and Rapolas Kasparavičius, LAWIN
An abundant number of agreements have been and will be concluded between states and investors operating under the bilateral investment regime and even a larger number of negotiations will fail before reaching the final stage of signature. An investor may spend large sums of money with the aim of concluding an agreement with the state. If the final agreement is not signed, these investments may be lost. Is the bilateral investment regime able to assist investors where investors spend large sums of money and where the negotiations are terminated by the state? Would the investor only be able to recover its costs or could the state also be liable for the investo [...]
and Oleg Temnikov
The tribunal in Mesa Power Group, LLC v. Canada (PCA Case No. 2012-17, Procedural Order No. 2, 18 January 2013) recently stated with regard to bifurcation of proceedings that:
“[I]t is good… to let the parties ‘know where they stand’… at an early stage and not to impose the burden of full fledged proceedings on a party that disputes being subject to arbitration.” (para. 16)
The issue of bifurcation of proceedings in investment arbitration has been little explored partly due to the limited number of publicly available decisions. Additionally, there are no “absolute rules” in that the power to bifurcate falls within the tribunal’s discretion. (Tuli [...]
Negotiations to establish a Trans-Pacific Partnership (TPP) agreement have been active and ambitious. Following 18 negotiating rounds since 2010, TPP talks now include 12 States, representing nearly 40 percent of global GDP. Scholars have observed that a TPP agreement, given its scale, could provide “staggering” economic benefits as well as a “genuine Asia-Pacific integration track.”
But the TPP negotiations, particularly with respect to the potential inclusion of an investor-State dispute settlement mechanism, have been criticized on policy grounds by certain judges, legislators, scholars, and organizations. As a legal matter, however, it is the criticism of investor-State dispute settl [...]
Because international investment law so often involves the application of treaties, the Vienna Convention on the Law of Treaties plays a key role in structuring its application. Of particular interest for many disputes are the rules of treaty interpretation contained in Articles 31, 32, and 33 of the VCLT. In that context, there are some signs of a gathering movement to resist the invocation of drafting history in the adjudication of investment disputes. A recent article criticized the “tendency for international investment tribunals to admit and rely on travaux préparatoires in their own treaty interpretations,” and at least one dissenting opinion has followed methodological suit in cr [...]