Our solicitors in Heathrow can assist with all levels of arbitration whether state to state or individual investors.
As seen previously litigation in this area can also be between State and State. Also known as state to state dispute resolution- If a host state fails to protect foreign investments as stipulated in a treaty, the home state could bring a direct claim as a party to the agreement.
Bilateral Investment Treaties (BIT) provide this dispute resolution by the parties governments in a standalone article or as a separate within the dispute. These provisions will often give the parties a choice of either taking their dispute to the ICT or to arbitration.
Articles 3 and Articles 9 of the 2013 BIT part II between Contracting states Tanzania and Mauritius for example state;
‘If the dispute cannot be settled within a period of six months following the date on which such negotiations were requested by either Contracting Party, it may upon the request of either Contracting Party be submitted to an arbitral tribunal’.
This clearly shows us where two states can be heading once initial negotiations have failed. In the past there was the use of force and home state military force was applied in instances. We are a long was from the 18th Century!.
Due to the rise in commercial disputes it was said that government intervention was becoming increasingly unnecessary and that government interference ‘upset’ private contractual arrangements.
In 1907 the Hague Convention II on Respecting the limitations on the Employment of Force for the recovery of contract debts (Drago Porter convention) made the use of force illegal for recovery of state debts unless the host state refused to submit to arbitration.
The International Centre for Settlement of Disputes
The ICSID is an international institute in Washington part of the Institutional Bank for reconstruction and development (world bank), who’s purpose is to provide facilities for conciliation and arbitration of investment disputes between states and nationals of other contracting states in accordance with the provisions of the convention.