Applicable law in investor-state arbitration

344 Pages·2017·4.6 MB·English

UvA-DARE (Digital Academic Repository)
Applicable law in investor-state arbitration: the interplay between national and
international law
Kjos, H.E.
DOI
10.1093/acprof:oso/9780199656950.001.0001
Publication date
2013
Document Version
Final published version
Link to publication
Citation for published version (APA):
Kjos, H. E. (2013). Applicable law in investor-state arbitration: the interplay between national
and international law. (Oxford monographs in international law). Oxford University Press.
https://doi.org/10.1093/acprof:oso/9780199656950.001.0001
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OXFORD MONOGRAPHS IN
INTERNATIONAL LAW
GeneralEditors
VAUGHAN LOWE QC
EssexCourtChambers,LondonandEmeritusFellow
ofAllSoulsCollege,Oxford
PROFESSOR DAN SAROOSHI
ProfessorofPublicInternationalLaw
attheUniversityofOxford
andSeniorResearchFellowofTheQueen’sCollege,Oxford
STEFAN TALMON
DirectoroftheInstituteofPublicInternationalLaw
attheUniversityofBonnandSupernumeraryFellowofStAnne’sCollege,Oxford
–
Applicable Law in Investor State Arbitration
OXFORD MONOGRAPHS IN INTERNATIONAL LAW
Theaimofthisseriesistopublishimportantandoriginalpiecesofresearchonallaspectsof
international law. Topics that are given particular prominence are those which, while of
interesttotheacademiclawyer,alsohaveimportantbearingonissueswhichtouchtheactual
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monographsonthehistoryandphilosophicalfoundationsofinternationallaw.
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Applicable Law in
–
Investor State Arbitration
The Interplay Between National and
International Law
HEGE ELISABETH KJOS
1
3
GreatClarendonStreet,Oxford,OX26DP,
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Acknowledgements
‘International investment law is one of the fastest-growing areas of international law
today. Only a decade ago, the current surge in investor–state arbitrations [...] was
beyondimagination.’1ItwasjustabitmorethanadecadeagothatIwasfortunateto
enter the field of international investment arbitration. The rise in the number of
arbitrations and the accompanying growth in scholarship partly explain the time it
hastakentopresentthisstudy.Relatedly,thefactthatIhavebeenexamininga‘moving
target’hasmadetheprocessmorestimulating.Ifeelprivilegedtobeabletocontinueto
workinthisareathatbringstogethersomanyfacetsofthelaw;the‘fieldtrip’2isnot
over.Inthisrespect,Iamespeciallygratefultobepartoftheproject‘InternationalLaw
throughtheNationalPrism:theImpactofJudicialDialogue’fundedbytheEuropean
Science Foundation as a European Collaborative Research Project in the Social Sci-
ences,asithas allowed me toexplore more deeply the larger theme of this book: the
interactionsbetweenthenationalandtheinternationallegalorders.
There are many to thank now that the book is published. In addition to the great
OUP team and then especially the Monograph Series Editors, Merel Alstein and
Anthony Hinton, I mention in particular André Nollkaemper for believing in the
project and for his sharp guidance; the late Thomas W. Wälde, for giving me confi-
denceandinspiration;andSabineSchlemmer-SchulteandRuthTeitelbaumfortheir
direction and friendship. I am also thankful to the distinguished Members of the
DoctoralCommittee3andAntonioParrafortheirvaluablecommentsandsuggestions
tothedoctoralthesiswhichformsthebasisofthisbook;aswellasNwamakaOkany,
YannickRadi,andAnthonyBattah,especially,forourdiscussions.Inadditiontothe
EuropeanScienceFoundation,Igratefullyacknowledgethe(financial)supportofthe
NetherlandsOrganizationforScientificResearch;theHagueAcademyofInternational
Law,CentreforStudiesandResearchinInternationalLawandInternationalRelations;
andtheSchoolofInternationalArbitration,QueenMary,UniversityofLondon.
WarmthanksarealsoduemyfriendsattheUniversityofAmsterdamformakingme
feel at home in the Netherlands and convincing me that I have the world’s best
colleagues.NexttoDanielleObradovic,ThomasVandamme,MartinevanTrigt,Jim
Mathis, Ronald van Ooik, Betty Kremer, Willem van Merle, Annemarieke Vermeer-
Künzli,IngoVenzke,MachikoKanetake,EstherKentinandHeatherKurzbauer;these
includemybrilliantfellowpionieren:GeranneLautenbach,WardFerdinandusse,Jann
Kleffner,NikosLavranos,JanneNijman,andFabiánRaimondo.
Tootherdearfriendsinvariouscornersoftheworld:thankyouforaddingsparkleto
mylife,eachinyourownway.
IwouldliketodedicatethisbooktomyfamilyinNorwayandtheNetherlands,and
thenespeciallytomyhusbandBertil—Icouldnothavewishedforabetterpartnerand
1 S.W.Schill,BookReview,PrinciplesofInternationalInvestmentLaw(2009)20(2)Eur.J.Int’lL.
471(reviewingR.DolzerandC.Schreuer,PrinciplesofInternationalInvestmentLaw[Oxford,Oxford
University Press, 2008]). Cf. A. Diehl, The Core Standards of International Investment Protection
(2012),1(‘Littlemorethanadecadeago,investmentarbitrationwasvirtuallyunknownbeyondthe
circlesofthosewhowereinvolvedinthenegotiationofinvestmenttreaties’).
2 SeeChapter8(concludingobservations).
3 CatharinaBrölmann,FilipDeLy,PieterJanKuijper,AndréNollkaemper,ChristophSchreuer,
NicoSchrijver,OleSpiermann,andErikadeWet.TheHonorableCharlesN.Browerservedinthe
roleofindependentexpert.
vi Acknowledgements
afatherforourdaughters;tomyMammaandrolemodelKari,foreverything,always;
and to my Pappa, Per-Arne, for giving me perspective and love. Last but not least,
IdedicateittoNoraSofieandKariHelenaformakingmesmileinsideandout,each
andeveryday.Iloveyou.
HegeElisabethKjos,Amstelveen,18September2012
Table of Contents
TableofCases ix
TableofLegislation xxi
ListofAbbreviations xxviii
1. GeneralIntroduction 1
1. MotivationsfortheStudy 1
2. TheScopeofandTerminologyUsedintheStudy 11
3. TheMethodandPlanoftheStudy 16
2. TerritorializedandInternationalizedArbitrationTribunals 19
1. Introduction 19
2. FeaturesoftheArbitralProcess 20
3. TerritorializedTribunals 23
4. InternationalizedTribunals 44
5. GeneralConclusions 59
3. Choice-of-LawRules 61
1. Introduction 61
2. TheLinkageBetweenLexArbitriandChoice-of-LawMethodology 62
3. Choice-of-LawRules 67
4. GeneralConclusions 103
4. TheScopeoftheArbitrationAgreement:ClaimsandCounterclaims
ofaNationaland/orInternationalNature 105
1. Introduction 105
2. Characterization:TheNationalorInternationalNatureofClaims 106
3. TheScopeoftheArbitrationAgreement:Nationaland/or
InternationalClaims 112
4. CounterclaimsbyHostStates 128
5. GeneralConclusions 154
5. ThePrimaryApplicabilityofNationalLawandtheRoleof
InternationalLaw 157
1. Introduction 157
2. ReasonsforthePrimaryApplicabilityofNationalLaw 158
3. TheRoleofInternationalLawwhenNationalLaw
PrimarilyApplies 181
4. GeneralConclusions 211
6. ThePrimaryApplicabilityofInternationalLawandtheRoleof
NationalLaw 213
1. Introduction 213
2. ReasonsforthePrimaryApplicabilityofInternationalLaw 213
3. TheRoleofNationalLawwhenInternationalLaw
PrimarilyApplies 240
4. GeneralConclusions 269
viii TableofContents
7. ConcurrentApplicationofandReferencetoNationaland
InternationalLawinCaseofConsistency 271
1. Introduction 271
2. ArbitralPractice 275
3. GeneralConclusions 293
8. ConcludingObservations 295
Index 303