Article 25(1) of the ICSID Convention states that “[t]he jurisdiction of the Centre shall extend to any legal dispute arising directly out of an investment”. The manner in which tribunals have applied this provision has gradually evolved and has been subject to considerable debate. The Salini Test has been at the heart of this debate. […]
The SCC Arbitration Rules
Introduction As part of its 100-year anniversary in January 2017, the Arbitration Institute of the Stockholm Chamber of Commerce (“SCC”) launched its new Arbitration Rules. The product was the result of a three-year undertaking by the Rules Revision Committee, who met regularly to discuss existing practices and to respond to user demand. The SCC’s previous Rules […]
Cyprus Arbitration: Is Cyprus Liable under International Law?
Cyprus Arbitration: can depositors successfully sue Cyprus in international arbitration for the measures it took in 2013? In 2013, Cyprus introduced a number of measures to prevent its banks from becoming insolvent. Most notably, it introduced a bail-in measure whereby it converted depositors’ deposits into equity in banks. This brought new capital into banks, without […]
How Do Investment Arbitration Tribunals Interpret Investment Treaties?
When interpreting a treaty provision, arbitral tribunals should first and foremost look at the “ordinary meaning of the terms”. This methodology is prescribed by Article 31 of the 1969 Vienna Convention on the law of treaties (VCLT). VCLT Articles 31-32 are codifications of customary international law. The interpretative approach prescribed by these articles should be […]
Duty to Mitigate Damages in Investment Arbitration
Notion of the Duty to Mitigate Damages Along with contributory negligence, a duty to mitigate damages is considered as a “compensation-reducing”[1] factor. However, contrary to contributory negligence, the duty to mitigate damages arises only after the breach of an international obligation. It implies an obligation for an aggrieved party to “take steps to minimize his loss, on […]