Law Commons^™

Submission Of Amici Briefs In Arbitration Related To Environmental Concerns: Developing A Better Framework For Their Consideration Under Icsid Rule 37(2), Clarissa Galaviz Lizarraga

Northwestern Journal of International Law & Business

This note examines the consideration of amicus curiae briefs in international arbitration matters under the International Centre for Settlement of Investment Disputes (“ICSID”), specifically focusing on arbitration cases involving environmental concerns. The note explores trends in consideration of amicus briefs in environmental arbitration by taking a historical look at cases and the rationales behind the decisions of the tribunals to consider amicus briefs and raises concerns regarding a better, uniform approach to amicus briefs.

To achieve a better system of consideration of amicus briefs when environmental concerns are at play, given their public and ecologic interest, the author suggests reworking …

Between Backlash And The Re-Emerging “Calvo Doctrine”: Investor-State Dispute Settlement In An Era Of Socialism, Protectionism, And Nationalism, Ylli Dautaj

Northwestern Journal of International Law & Business

The Investor-State Dispute Settlement (ISDS) regime stands on shaky ground. Its legitimacy is heavily questioned by critics and a “backlash debate” has ensued. As a result, a contested and infected debate has been on-going for some years now and multiple reform proposals have been offered, ranging from (a) moderate (and sensible) reform proposals—e.g., increased transparency; the inclusion of state counterclaims; the inclusion of higher ethical standards; reformulating deference standards; applying human rights and environmental law when interpreting international investment treaties; etc.—to more (b) radical reform proposals—e.g., the elaboration of either an Appellate System or an Investment Court System (ICS). Such …

The Indian Securities Fraud Class Action: Is Class Arbitration The Answer?, Brian T. Fitzpatrick, Randall S. Thomas

Northwestern Journal of International Law & Business

Abstract:

In 2013, India enacted one of the most robust private enforcement regimes for securities fraud violations in the world. Unlike in most other countries, Indian shareholders can now initiate securities fraud lawsuits on their own, represent all other defrauded shareholders unless those shareholders affirmatively opt out, and collect money damages for the entire class. The only thing missing is a better financing mechanism: unlike the United States, Canada, and Australia, India does not permit contingency fees, so class action lawyers cannot front the costs of litigation in exchange for collecting a percentage of what they recover. On the other …

Mechanisms For Consultation And Free, Prior And Informed Consent In The Negotiation Of Investment Contracts, Sam Szoke-Burke, Kaitlin Cordes

Northwestern Journal of International Law & Business

Investor-state contracts are regularly used in low- and middle-income countries to grant concessions for land-based and natural resource investments, such as agricultural, extractive industry, forestry, or renewable energy projects. These contracts are rarely negotiated in the presence of, or with meaningful input from, the people who risk being adversely affected by the project. This practice will usually risk violating requirements for meaningful consultation, and, where applicable, free, prior and informed consent (FPIC), and is particularly concerning when the investor-state contract gives the investor company rights to lands or resources over which local communities have legitimate claims.

This article explores how …

Embracing Non-Icsid Investment Arbitration? The Chinese Perspective, Meng Chen

Northwestern Journal of International Law & Business

This article introduces and examines Chinese arbitration institutions’ recent movements to expand non-ICSID investment arbitration services, which could potentially contravene existing relevant Chinese laws and judicial practice, and it explores the prospects for non-ICSID investment arbitration in China. The article first compares ICSID and non-ICSID investment arbitration to determine the differences between them and their respective selling points for stakeholders in investment disputes. Next, the article examines the diverse mechanisms involved and highlights the different rules that govern non-ICSID arbitration, including the rules established by Chinese arbitration institutions in recent years. The article then further analyzes the obstacles in existing …

Mending The Wound Or Pulling It Apart? New Proposals For International Investment Courts And Fragmentation Of International Investment Law, Jaemin Lee

Northwestern Journal of International Law & Business

Robust discussions on standing investment courts are currently taking place at various fora. In particular, negotiations to include bilateral investment courts in IIAs are in full swing and leading to the creation of such courts. On the other hand, negotiation for a multilateral investment court has yet to start. Even if negotiation begins, it is not clear how long it will take and whether it will indeed lead to a successful conclusion. As such, for a significant amount of time in the future, it is bilateral investment courts that states administer to resolve investment disputes. Bilateral investment courts, however, will …

The Role Of Precedent In Defining Res Judicata In Investor–State Arbitration, Pedro J. Martinez-Fraga, Harout Jack Samra

Northwestern Journal of International Law & Business

As international arbitration, and investment arbitration in particular, becomes more prevalent, the risks of doctrinal fragmentation also increase, in part driven by the disparate treatment of the doctrine of res judicata throughout most jurisdictions, and in the arbitration context. Notwithstanding the general consensus regarding the broad contours of res judicata and its firm position as a principle of international law, there is little agreement regarding how it is to be administered. These developments threaten to undermine the international arbitration system, wresting from it normative legitimacy. The U.S. common law version of res judicata, which is distinct from res judicata as …

Culpa In Contrahendo In European Private International Law: Another Look At Article 12 Of The Rome Ii Regulation, Najib Hage-Chahine

Northwestern Journal of International Law & Business

Precontractual liability is liability that arises out of a harmful conduct that occurs during the formation period of a contract. Where the harmful conduct occurs during international negotiations, a conflict of laws issue arises. The determination of the applicable law to precontractual liability can be a complex and tedious task, which is why the European Legislature has provided a special conflict-of-law rule in Article 12 of the Rome II Regulation on the applicable law to non-contractual obligations. Through this provision, the European Legislature aims to achieve uniformity between EU Member States, while providing an appropriate conflicts rule. The present essay …

Why Does The Complainant Always Win At The Wto?: A Reputation-Based Theory Of Litigation At The World Trade Organization, Matthew C. Turk

Northwestern Journal of International Law & Business

World Trade Organization (WTO) litigation presents an empirical puzzle: complaining parties "win" close to 90 percent of cases, while standard theories of litigation predict a strong tendency towards a 50 percent plaintiff win-rate. This Article explains the high win-rate by examining the reputational costs and benefits of filing a case. The WTO's lack of centralized enforcement means that the consequence of a judgment is merely to disseminate information that alters a party's reputation for compliance with its trade obligations. Such a "reputational sanction" applies to both losing respondents and complainants. The result is that only cases with a very high …

Judicial Politics And International Investment Arbitration: Seeking An Explanation For Conflicting Outcomes, David Schneiderman

Northwestern Journal of International Law & Business

In taking on the controversial debate over the role of state attorneys general in antitrust enforcement, the article draws upon recent legal and historical scholarship on federalism to argue that globalization requires a paradigm change in concepts of U.S. federalism. While many assume that increasing international economic integration makes state participation in economic regulation with international implications inherently problematic, the article demonstrates that, to the contrary, states have an important role to play in the regulation of international business. States have a long history of challenging the federal government in a way that has promoted a robust national dialogue on …

Proportional Pragmatism: A Defense Of International Arbitration Agreements In The Face Of Asymmetrical Paternalism, Rusty O'Kane

Northwestern Journal of International Law & Business

With foreign direct investment's increasingly important role in the global market, a more comprehensive regulatory system has emerged to guide key participants. Bilateral investment treaties have developed as an essential piece of the emerging regulatory system. Bilateral investment treaties are "[international investment] agreements between two countries for the reciprocal encouragement, promotion and protection of investments in each other's territories by companies based in either country." These treaties have drastically affected the way foreign investors interact with host countries, especially in the area of dispute resolution. A distinctive feature of many BITs is that they provide for alternative dispute resolution procedures …

Reliance Remedies At The International Center For The Settlement Of Investment Disputes, David Collins

Northwestern Journal of International Law & Business

This article will examine the types of situations and expenses which ICSID tribunals have compensated by awarding damages for actual losses suffered and will attempt to illustrate how this choice is generally economically efficient. It will begin by outlining standards of damage remedies that are commonly employed in international law and will conclude with some criticisms of the reliance measure in the investment context. As this article is forum-focused, it will not examine reliance-based remedies in international investment law under other regimes, such as United Nations Commission on International Trade Law (UNCITRAL) arbitrations or under the Iran-U.S. Claims Tribunal, in …

Dancing With The Dragon: What U.S. Parties Should Know About Chinese Law When Drafting A Contractual Dispute Resolution Clause, Marcus Wang

Northwestern Journal of International Law & Business

This paper is intended as a guide for U.S. parties doing business with Chinese parties who wish to inoculate themselves to the greatest extent possible against foreseeable difficulties arising from disputes. One such protective measure is the inclusion of a dispute resolution clause in the contract between the parties. Dispute resolution clauses, for the purposes of this paper, refer to clauses in the contract between the parties that specify the location and means of dispute resolution. That location may be a forum in China or outside of China, and the means may be either litigation or arbitration. U.S. parties must …

Arbitration Of International Oil, Gas, And Energy Disputes In Latin America, Alexia Brunet, Juan Agustin Lentini

Northwestern Journal of International Law & Business

An increase in global reliance on fossil fuels has prompted greater discussion on energy security. For the United States, interest has focused on ensuring that countries in the Western Hemisphere, which currently supply roughly half of U.S. imports of crude oil and petroleum products, remain stable sources of energy. While concerns have focused on political instability and a rising interest in the hemisphere's energy resources by China and India, the conversation centers on a hemispheric trend toward resource nationalism. Resource nationalism is exemplified by the global trend of placing the world's oil reserves under the control of national oil companies …

The Hague Convention On Choice Of Court Agreements: The United States Joins The Judgment Enforcement Band, Matthew H. Adler, Michele Crimaldi Zarychta

Northwestern Journal of International Law & Business

In 2005, the United States signed a treaty that, if ratified, would be the United States' first-ever international agreement on judgment enforcement. The treaty provides that (a) where two commercial parties elect to resolve disputes between them in a particular forum, and (b) a judgment issues from that forum, then (c) all member states must enforce the judgment. It is a document driven by party autonomy; absent a choice of court agreement (in U.S. parlance, a choice of forum clause), the treaty has no meaning or applicability. The treaty's signing was the end of a rigorous journey. The United States …

International Commercial Arbitration In Cyberspace: Recent Developments, Ljiljana Biukovic

Northwestern Journal of International Law & Business

This article examines some features of virtual arbitration and argues that the use of new technology and the development of e-commerce raise some interesting questions to international arbitration laws. Part It describes initiatives to develop online dispute resolution. Part III discusses virtual dispute resolution centers, including, how, why, and where they function. More importantly, however, Part III investigates the differences between online and off-line arbitration, where the focus remains on three questions. The first question is a crucial one. It has been debated by scholars and practitioners but still remains unresolved: will arbitration agreements concluded online and arbitration awards rendered …

Knowledge, Legitimacy, Efficiency And The Institutionalization Of Dispute Settlement Procedures At The World Trade Organization And The World Intellectual Property Organization, Michael P. Ryan

Northwestern Journal of International Law & Business

International legal research regarding international economic dispute settlement tends to be a-theoretical. A theoretically-grounded analytic framework is employed in this article which draws from scholarship from political science, sociology, and economics regarding institutions and international governmental organizations. The knowledge-legitimacy-efficiency analytic framework is applied in this article to studies of General Agreement on Tariffs and Trade (GA TT)/World Trade Organization (WTO) dispute settlement in order to relate this relevant scholarship to the economic field under primary study, Internet domain names. GA TT/WTO knowledge regarding international trade law has thickened through multi-lateral trade negotiations and dispute settlement decisions. The WTO's legitimacy is …

Creating A Market For Justice; A Market Incentive Solution To Regulating The Playing Field: Judicial Deference, Judicial Review, Due Process, And Fair Play In Online Consumer Arbitration, Llewellyn Joseph Gibbons

Northwestern Journal of International Law & Business

Swindlers, purveyors of substandard products or services, and honest traders unable to perform their agreements can access the global market as easily as legitimate and capable businesses. The impersonal nature of e-commerce makes it more difficult for traders to discern a merchant or transaction that will not satisfy their expectations. This article analyzes procedural due process concerns as an element of arbitration in online dispute resolution ("ODR") in business-to-consumer ("B2C") e-commerce. B2C e-commerce will be worth an estimated $250 billion by the end of 2003, but one factor hindering its growth is the lack of effective dispute resolution. For reasons …

Worms, Mice, Cows And Pigs: The Importance Of Animal Patents In Developing Countries, Elisabeth T. Jozwiak

Northwestern Journal of International Law & Business

Transgenic animals play a large role in several critical industries: the pharmaceutical industry, the agricultural industry, farming, and medical research. As these biotechnology-oriented industries have grown, the United States and other industrialized nations have realized the importance of patent protection for genetically-engineered animals. Unfortunately, lesser-developed countries (LDCs), which can benefit the most from such industries, do not provide adequate patent protection for transgenic animals, even though patent protection for transgenic animals could ultimately lead to reduction in starvation and disease, two of the biggest problems facing many LDCs. The United States should pursue bilateral negotiations with developing countries in the …

The Selection Of Choice Of Law Provisions In International Commercial Arbitration: A Case For Contractual Depeҫage, Craig M. Gertz

Northwestern Journal of International Law & Business

One additional advantage of arbitration, the parties' ability to predetermine the law governing the resolution of the dispute, has gained growing recognition in recent years. This recognition, however, has been myopic to some extent. Some commentators see choice of law options confined either to the selection of one national legal system from several possibilities or to the selection of a single national, international, or anational legal system. Such a self-imposed limitation of the applicable law to one system of law often denies parties many of the benefits and powers allowed them in international commercial arbitration. As an alternative, an agreement …

The International Arbitrator: From The Perspective Of The Icc International Court Of Arbitration, Stephen R. Bond

Northwestern Journal of International Law & Business

In short, an arbitrator must have what Professor Pierre Lalive has called the "ability to judge," which implies a capacity to evaluate conflicting statements of law and/or fact and to have the wisdom, courage and expertise to reach and render a decision in such a way that the parties - and perhaps most of all the losing party - will recognize both the essential fairness of the procedure and the futility of efforts to overturn the award or oppose its execution. Only when this occurs, as happens in about ninety percent of ICC cases, can arbitration truly achieve the relative …

The Place Of Arbitration In The Conflict Of Laws Of International Commercial Arbitration: An Exercise In Arbitration Planning, Filip De Ly

Northwestern Journal of International Law & Business

Growing complexities in the law and practice of international commercial arbitration and a certain loss of the spirit of arbitration require reflection by all interested parties (litigating parties, their counsels, arbitrators and arbitration centers) in order to maintain some of the traditional advantages of arbitration… The purpose of such reflection is to maintain the reputation of international commercial arbitration as a speedy and cost efficient dispute resolution mechanism for international business transactions. This may be achieved by an attempt to identify the options which interested parties may have and to indicate their respective advantages and disadvantages. This process may be …

Non-Lawyers In International Commercial Arbitration: Gathering Splinters On The Bench, James E. Meason, Alison G. Smith

Northwestern Journal of International Law & Business

In light of the frequent appearance of arbitration clauses in international contracts, and the volume of litigation handled in this manner, international commercial arbitration' has become a favorite subject of commentators who have primarily focused on the relative benefits of arbitration versus litigation and cross-institutional rules comparisons. One area that has received scant attention is the factors concerning the actual selection of particular individuals to serve as arbitrators. This article looks at how arbitrators are chosen today within the institutional context. Following this are general discussions of selected professions for indications of their members' inherent suitability for and adaptability to …

Recent Developments In Inter-American Commercial Arbitration, Charles Robert Norberg

Northwestern Journal of International Law & Business

Arbitration has become an effective procedure for resolving international commercial disputes in the Western Hemisphere. A framework of treaties exists, establishing substantive law and procedure for that purpose. The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) has been ratified by sixteen Western Hemisphere countries. The Inter-American Convention on International Commercial Arbitration (1975) has been ratified by thirteen countries. Furthermore, the World Bank's Convention establishing the International Centre for the Settlement of Investment Disputes has been ratified by four Latin American countries and six anglophobe Western Hemisphere countries and it has been signed but not …

The Recognition Of Foreign Privileges In United States Discovery Proceedings, Kurt Riechenberg

Northwestern Journal of International Law & Business

Discovery of evidence that is not available in the United States is a frequent problem in international litigation before United States courts. A common element of international litigation in such complex cases is that key witnesses reside abroad or crucial business documents belonging to foreign litigants are located in other jurisdictions. Due to the fact-dependent nature of these cases, courts in the United States have been confronted with numerous legal and practical obstacles in their attempts to obtain evidence, whether written or oral, from foreign litigants or non-party witnesses. Discovery orders of United States courts relating to testimonial or documentary …

Mitsubishi Motors Corp. V. Soler Chrysler-Plymouth, Inc: International Arbitration And Antitrust Claims, Lisa Sopata

Northwestern Journal of International Law & Business

Arbitration is an attractive alternative for parties entering into commercial transactions. Parties to international contracts often include arbitration clauses in an attempt to protect their rights and to eliminate uncertainties in the event of a dispute. A court may nevertheless treat a given dispute as nonarbitrable if the issue is highly charged with conflicting public policy concerns. The United States Supreme Court in the recent landmark decision, Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth Inc., held that private antitrust claims are arbitrable in a transaction arising in international commerce. The court ruled in a five-to-three decision that if an international contract …

New Trends In The Practical Application Of Icc Rules Of Arbitration, Yves Derains

Northwestern Journal of International Law & Business

During the 1970s, arbitration has become the normal way of settling disputes arising in international trade. The statistics provided by the International Chamber of Commerce (ICC) Court of Arbitration (the Court, or the Court of Arbitration) are evidence of the incidence of the increasing recourse to arbitration by businesses involved in international transactions; of an increase in the amounts in dispute; of an increasing diversity in the nationalities of clients3 as well as in the types of the disputes submitted to arbitration.4 The development of international arbitration in the last decade may be explained by the fact that no other …