Jurisdictional Review of ICSID Awards

in The Journal of World Investment & Trade
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The Journal of World Investment & Trade

Law • Economics • Politics


1AmcoAsiaCorp.andothersv.Republico[Il1dO/lesia, IcsW Case No. Arb/81/1, Decision of the first Ad Hoc Committee of 16 May 1986, 1 ICSID Rep. 509 (1993); K16cktier Illdustrie-AlIlagm GmbH and others v. Utiited Republic of Camerooll and other, Icsin Case No. ARIJ/81/2, Decision of the first Ad Hoc Committee of 3 May 1985, 2 Icsid Rep. 95 (1994); Maritinre Intenrational Nominees Establishment v. Republic of Guinea, ICSID Case No. ARIJ/84/4, Decision of the Ad Hoc Committee of22 December 1989, 4 ICSID Rep. 79 (1997); Wena Hotels Ltd v. Arab Republic of Egypt, ICSID Case No. ARI3/98/4, Decision of the Ad Hoc Committee of 5 February 2002, 41 I.L.M. 933(2002); Vivendi v. Argentine Repnblic, ICSID Case No. AKti/97/3, Decision of the Ad Hoc Committee of 3 July 2002, 41 LL.M. 1135 (2002). Z Amco Asia, ibid., at �56.

3 See, in particular, C.F. Amerasinghe, Interpretation of Article 25(2)(b) of the IcsiD Convention, in R. Lillich and C. Brower (eds.), International Arbitration ill tlie2lstCetitiiry: Towardsjlldicializatioll and Ulli/anllity? Transnational Publishers, Ardsley, New York, 1994, p. 223; A. Asouzu, A Review and Critique of Arbitral Awards on Article 25(2}(b) of the ICSID Convention, 3 J. W.I 3, June 2002, pp. 397-454; A. Broches, The Convention on the Settlement of Investment Disputes between States and Nationals of Other States, 136 Renleil des Cours de 1'Acadcrnie de Droit International de La Haye 331; C. Schreuer, The lcsid Convention, A Conurrerrtary, Cambridge University Press, Cambridge, U.K., 2001, pp. 82-344; C. B. Lamm, Jurisdiction of the International Centre for Settlement of Investment Disputes, 6 Icsio Rev. 462 (1991); K. Nathan, Submissions to the International Centre for Settlement of Investment Disputes in Breach of the Convention, 12 Journal of International Arbitration 27 (1995); I. Shihata and A. Parra, Tlre Experience of the International Cefitrefor the Settlement of Investment Disputes, 14 Icsii) Rev. 299 (1999); W.M. Tupman, Case Studies in the jurisdictioll oftlie International Centre for Settlement of Investment Dispiites, 35 International and Comparative Law Quarterly 813 (1986). 4 From a purely informative point of view, it is interesting to note that in a matter unrelated to investments the German Supreme Court recently took the exact opposite view by declaring that an award decliningjurisdiction cannot be challenged at all for want of a corresponding ground of annulment in the German law on arbitration, which is derived from the Unutrai. Model Law (Ben. Case III ZB 44/01 of 6 June 2002, published in (2003) Schieds VZ (German Arbitration Journal) 39). Serious doubts have been raised, with reason, as to the correctness of this decision (see S. Kr6fl, Recourse against Negative Decisions on Jurisdiction, 20 Arbitration International 55 (2004), at 61-72). 5 see, in support of this position, Schreuer, supra, footnote 3, pp. 911-913; D.D. Caron, Reputation and Reality in the IcsiD Annulment Process: Understanding the Distinction Between Annulment and Appeal, 7 ICSID Rev. 21; and, for the opposite point of view, P. Pinsolle, The Annulment of Icsto Arbitral Awards, 1 J.W.I. 1, July 2000, pp.243-257.

6 Pinsolle, ibid., at pp. 253-255. Champion Trading Co. and others v. Arab Republic of Egypt, Icsid Case No. ARB/02/9.

8 These decisions have been widely commented upon. See, for commentaries on the Decision of the Ad Hoc Committee of3 May 1985 in the Klockner case, in particular: A. Broches, Observations on the Finality OFICSID Auards, 6 Icsin Rev. 321 (1991); M. Reisman, RepairinA Icsid's Control System: Some Comments on Aron Broches' Observation on the Finality of ICSID Awards, 7 ICSID Rev. 196 (1992); A. Broches, On the Finality 4 Awards: A Reply to Michael Reisman, 8 ICSID Rev. 92 (1993); G. Delaume, The Finality of Arbitration Involving States: Recent Developments, 5 Arbitration International 21 (1989); Caron, supra, footnote 5; A. Rcdfeni, IcsID--Losil1g its Appeal? 3 Arbitration International 98 (1987); E. Gaillard, Chronique des Sentences ClaDt, 114 Journal du Droit International 184 (1987). See, for a commentary on the Decision of the Ad Hoc Committee of 3 July 2002 in the Vivendi case, E. Gaillard, Chronique des Sentences C1AD1, 130 Journal du Droit International 230 (2002). '' Klöckl1er, supra, footnote 1, at §52.

111Vivcndi,supra, footnote 1, at �86. 11 "To adjudicate upon the international responsibility of Albania without her consent would run counter to a well-established principle of international law embodied in the C:ourt's Statute, namely, that the Court can only exercise jurisdiction over a State with its consent" (International Court ofJustice, Case of the Monetary Cold Renumed from Rome in 1943, Rec. 1954, p. 32); "L.a jnridictiorr de la Coitr depend de la iolotit� des Parties" (Permanent Court of International Justice, Affzire des Droits des millorités en Haute Silésie polollaise, Series A, No. 15, p. 22).

tz See, for example, Article 190, al. 2 of the Swiss Loi federale sur le droit international privc: "La sentence est definitive des sa communication. Elle lie petit etre attaquee que : (...) b. Lorsque le tribunal s'est dedare a tort competent ou incompetent." " �3 See Broches, Observations, supra, footnote 8, pp. 358-360; Schreuer, supra, footnote 3, pp. 935 and 936-943; P. Kahn, Le controls des sentences arbitrales rendues par tin Tribunal CIRDI, La juridiction intemationale pemranente, Society française de droit international, Colloquc de Lyon, 1986, p. 363. 14 See D. Thompson, The Klickner v. Cameroon Appeal, A Note on Jurisdiction, 3 Journal of International Arbitration 93 (1986); B. Pirrwitz, Annulment ofArbitral Awards under Article 52 qftite Washington Convention on the Settlement of Investment Disputes Between States and Nationals of Other States, 23 Texas International Law Journal 73 (1988). rs See E. Gaillard, C.LR.D.l. Chronique des sentences arbitrales, 114 Journal du Droit International 135 (1987), at 187. 16 See ICSID, Documents Concerning the Origin and Formulation of the Convention on the Settlement of Investment Disputes between .States and Nationals of Other States, Vol. II, pp. 271, 423 and 850-851. 17 See Article 32 of the Vienna Convention on the Law of Treaties, entitled "Supplementary means of interpretation", which states: "Recourse may be had to supplementary means of interpretation, including preparatory work of the treaty and the circumstances of its conclusion, in order to confirm the meaning resulting from the application of article 31, or to determine the meaning when the interpretation according to article 31: (a) leaves the meaning ambiguous or obscure; or (b) leads to a result which is manifestly absurd or unreasonable."

�" See Schreuer, supra, footnote 3, p. 937: "Where there is no jurisdiction, the term absence of powers' would be more appropriate." 19 See T. Clay, L'arbitre, Dalloz, Paris, 2001; P. Thcry, POlliJoir juridicti01111el et competence (etude de droit illtematiollal privé), these, Paris II, unpublished.


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