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1355115
Si,’
StIIEiiaiIs Jf
‘(
li
Investment Protection
A1’(.;Ls1 kl ç i
UN1V1’RS1 I Y PI{Æ’s
OXFORD
i
‘i
i
...
d
i
(
/
-7
Oï(/CO
ÅIoy.
A. I flt[OdtktiOfl
(;iu1/zrtl
Full Protection and Securitv
t
‘ou,
esumuit i
.:“
Is in’
i]
\1), 1,
onal
i-.
o
ins
.‘)s’,r.
‘
‘
‘
ss
•,,.
i
for i I
p
0
-
.1
...,.‘,:Sfl.
.
..
r
I
.
-
,
ii
,.,
...
/
i
i
Nu
-
fl
i
rSi
Ihis eliapter svill analyse receitt Investneni arhii rat Inn
n e in in pn i if i
sta ndard ni i nvestment proie( tinn In noss n ds ull prnten i inn and s t iii it n
attempt of identih ing a possible enteiging n nnsnsus on us s ogn of app iiat inn
and interpretarion.
I be standard of bul rte Inn nd sen urit is les’ i letluent h appi ed i han
other st-andacds. henee arbitratunti praetice n nnt nnimnn and i he inud I ii.erai Lure
is rarher seare.’
Iratlitionaliv. ir eiiinvs an undisputed snnpu ni applin at sin in ihi f ni ni
phvsical proleetion ni the asnets aud indun iduals nontuen ted with an innen mcnt
as WlIl be seen ifl seetton I). lIie protenriun hat titt legal ss stcin a uids in
in prevent ni proseeute an i ions tinn hun aten i ur lmpdir t be pbysin al salet ni i
invest
i
naunsidered
mnnt
an
be
ds
tetislon
suf
an
ex
ust
i
fin
tonn
ment
jun
snal
d
seettrulv: both
poluce
the
hares
.und
ilie
tidkual
aduistinsuran
nu
n
in’
n
ni
in
inni t.ute can h engaged in sen urulig di phestnal santu ni a torstuti .:iu
il .1.
as ss iii h seen n sentunn 1..
?\ tore reen nu ly, the standard han heen invokt d i ti onin ti toll SSII h a n nad i
seope that g es bevond i hn phvsut. al proten t n in gi a med h pOI Re nr inn [ar lot i en
an well an titt .isaulabilit ni tlw j ud ut ml s skinn, arni uxpands Ila ninin ahst tdtt
kmd
ut
ntn
turutu.
hen chn socurn iii
uneisi
‘s
an
iii
ment
ut
i
as
nuendeni
[in si d saiet liii is
scearlis ihe .ppinJuulun i titt f1l iuutn tinn tid
ut ti sLtt.d.iiC ‘\d’
us tradittonal snpn of applicatlon. [inn, ingal snnliiIt\ uas at tinin’ in n i nkd
in sann tinn It i;ulaiors .n i ions nr ni her bc han tonn i hat han vlnldtn d i [in In il ti i inn
i
i
I inn i
NI
ias.it
Vi::
lVIIIIV
i. SS(
s&tpe
-
ille
VpL’I
il
ot
I ii / O(ti 111)11
te
is
uet
ss
lelilatlis
aud vet
il be
in
i/I i
be
e
i’i
SIC[1uIIi
lite Sources
seen
s.uupC Ol .upprcu.iatiuufl
B.
UPI!
,
is
(V
ss
ht
h
st
I
1
tns
mot
ss
is
undet
take
i
01
lias
affeeted
the stability of ihe
l(,tI tt,ttttsssotk
lot
lite
ltstStiiietti,
ds
ssill
ltu
Jtl1lyse(l
III
%CCtiotl
I \pand
ti
tlss
ull
plotve
11011
aud
secut
to this Li nd of legal pro
:01
i
nd
Is
staitdVud
tlss
strtLtngl
sunihu
o
at
other well-known and more
s Ge Sptl’ad si,
ot
i
ml
piotse
I
11011
ut air aud e
i
hat
uitahle Irratment. Recent
1
Viii
101
Id(
iC
v
lt.o
tonii
ihis aspee t aud u has at times eonsidercd
d
.1
LIV v:
I in
sCeuritI Js h
oi bed liv Liv i air aud equitahle treatment,
5
v
Ihus. ti
n
C to ssiiai extent tite stand
1
IjtlUStIOIid[)
i
hull
s
.II1d
suu.ttrtt
tas
a nean tg ihat guues
evond rhe trad—
;iiis si Ji :iIitc hun
not os en, ppu with other standards of
i
IuoIdcritlh
1 il t
t.Lt
i Itji
sonici tiles Jcbat1 U iii hit ta1 p1 iL I Le, although not
.j ut i
i
i att
aud
eljuttable
I
iea
tHeOl,
ts
whether
the
standard
i’ ,u:
statt,latd
tidegn 11111
III
ut
(tiStOtildt
iluent
attotial
idVu
or
rather
has
to
be
iuit rpt
ir
d
titide
i
tiL
u
mstane
es
aud
applivabie
i
reatv. Seetion
will
aia-inpt to iden
tI
,ius
eluelgtug
tendenetes
in
at
bitt
ation
prauiee as to the von
si.
taes, il .ttis
ousdet
of
ing
full
proteetioli
a
sce
(
d
ut ity as a standard ofeus
tOn.IS i tisst natt mal lass 01 ,ts
based
a
standat
on
the
el
applicable treaty.
lii is qu si bo has
i. usstons
on
he
k
ud
ot
i
obligations tltat tise standard
itt.1ls: seettou I ss til i. ttiiuc trbutariou
IL:
s position as to shether it is an
iraL
ss il ‘t kl itilutjits LO ,uii
ltased on the exerelse ufdiligenve.
ihlii.ation
.0.11. In iii. I.utk
asi.. ss i,etler ille dili’eiis
espes ted a suheetive standard
I i ILIL Lhstal Les ol, ratitei. att ohiee live Vtandald. us latter distinetion
ihat ,i State lias in the exercise ofits
I
tids .u
5’
siseiLlut] pICIOL, htSes. .is
i-
.
-
il
:
tatt
SitlO
d
fl i
•
ut
I
V
1
tLSl
i
5
in
i
ti
Ot
ti
ti
ittttl.it
Ji
i.
Ol
livi n
5
rotee
.
ull
tioti and seu.urirs fl is
Ifl1Il pioteettoll aud sevtlnirv’
i
a
s cr1 po siluitttie [us standard no
c be
1
alt .isidti ti
to Ille ottltgition ut aceord—
oil igat vii ti ahsiaiuiiig rom arbiirarv
sp ihu.aiion of ihe i trier obli
so tiet 10115 ment ioned alon
VtCJl
lite stausi .11(1
ur to iii.
nuas
i,s
h
hull
•
‘on ts i
P° hioll
li. u.! s
iii hull liii
ol
olistalli
.u
VI
Is
leS i 1
It
L
‘VII
IVSI
i
il oil
lik
i i
1,
i.
liti. Iii. i ungt itti iss md i hat hase dealt ss nu ta question ol full protectlon
t til stss ut us ss
bass d on a kw itis cstment tre tites, listed below and grouped
le ut du uo Iii. soti.lt og ss it it ss lttch the p0 ice tt m standaid is expressed. As tise
es shss Iss 1
sodit iii ssltftlt ille siatid. id offull ploteerion aud secur
d i .0 .01. bot li iii lespei. I ot be I ruiulation uselfand in iespevt
I
i:
V
V-I
0
V
&
in addition to rhe
international law.
sometimes
international
/3. I/ii Sou i’ e
rcquiremvms [tv
Overview of the Different Formulations
seetti
,V,
lass, or
.
,is
I
spetfted [w
is
,-\rt,Je
‘[be preeise formularions 1)1 full proteetion tilsi
it ehiuses in hi l.ttet al tus est
ment treanies (Bil’s) dithr markedl. i los shapter vill provide a bniet mel ass of
d ilErent kinds offuli proteetion aud seu. urit v elauses togeiher s itli III tusikatitu
of investment eases in svit ieh thev have been ins oLed.
A itumber of BITs provide that ut Vest ments shall be du. i, orded latt aud esu it—
ahie rreatment md shaii enjov full proietion aud ses uros Suu. Is .t lot Inu
lation ein be found lit Artiele 2t21(ii ( ieu.h Repiibhu.uSlos ak Reptiba Bl 1H
Artiele 2(2) United Kingdontil’ g> pt BI 1.1 ud Articie li 2gb i. ‘nited K ngdoiti
Sni Lanka Bl’l
A few BITs provide that investments shall enjov full legal EOii.i. 1100 ,uid full
legal seettnity like Article 4(1) (Jermanv/Argentina Bli
BIT provisions that investments shall be aseorded fait ane! equtiable iteattiient
aud shali not be impaired by unreasonable or diseniminatot y rneasures .1 ssl, more
particularly, that they shali be aveotded full proteulon ,ttisl se uritr u.an be lound
in Articie 3.1 and Artiele 3.2 of the Netherlands!( ieeh aud Slos iL Repuhlic
6 is veli is Artiele 3.1 and Artide 3.2 Nctiterlands, Poland Bli
BI’1’
An ex-ample ofa BIT providing that tnvestnlents sltall be aeu.orded twl piotec—
tion and seeunitv in aceordanu_e with the pnineiple ol hun and equitable treatlitent
1
ein be seen in Artiele 5. I I:rinee/Argeni ina Bil’!
Bli’s providing that investments shall be aeeorded full proieetiou aud seCtH us
( 1
aCCCrdanvC with international 1.1w ane lound in [‘5 praetice sueh
United States/Mexieo B1’i’.
9
iii
t)es
-
-
1 11151’t ,tilL 11110 liii 11 \‘V1S
li
lite irealy heisvein thu (‘/es h ,tnd ihe Sios ak Ri.’ptthli
Sss 4
(‘eskoslovenska obi-hodm hauka i/. (( 508,) v .S/ova/ Ru-ptib/zc, 11.-SI I) ( .ise Nu .\R i)
20
embei (>04V ihe t nibuual fouttd t hat titt par ti’s bad lIK otporated 1111110 lik li bli. Si bli
iherefone in rsspesi of r1w appliu.auon ut ihe siatidtud uf toll l1i1r uon ,ud si’s 01 1 il i tid
refers
-
frorn
,.
-
-
-
-
-
-
OiL/V
(til
.,,
1
‘
‘V’;
lIt I
i
-
-
-
‘.
Sit SIV
-
LV,,
liii t/
I
.
,
(V
StIl/V
-
:‘
‘V
11 SJj) I
V
iii ihe woiding of time treatv, pnas 62 i i tq md lot et q. 11w ssord
: n’t I r 4 Is I 111111 5
1
taketu
rhe Award pana. 6 i.
Os iii SI)
Oena Hot1/sItnIttdi -1-ab Repuhltca//gij&, Il Slitt ,usi’ NI. 5k 1.6)5
20011.
Il, fii0 0 il St I
11. SI i
i
SISt’ s
iz ,‘1ir, bL&tflu I! I (/mi, / 0/ •.i,liI
1
A,i
Award, 2” 1mw iflflO.
iss,uid
i Iiui-l1i)euIttnu Ru,1L/nh,. il. til li ii, Nuir\kb ul, 5
,Slu.m’n 4
LV
1,1 bO Si’. .1 I
I
R-n/u/ li’ i
16, V, ti eL/IL :
(.IE
R ,‘:i
SV-IL VilIb
Juni ,uid ,Salii &si IflIi’,IllIu’li i, I li’s .V ziss;,,’
50 .0
200o
biiii’kii h.’i i RI7VUL/ 0/ i’JiY&d Piitti .5v a:ii, i- \ut’,st 2uu’
I,V :1.
I
fl i iti 5 i
du! V’lVVO/L/iIl7a 5 il iv / ti 1111
(‘ofrIpa;na 515
-,
[(‘Slit 1. ase Nu. AR BiQ”!.i. Awa nd, 20 A Itgis
I/’’nicas !tfsrlzoambie,:ti/i 155010 5. 4 I
Nu. ARBAF )/00/2, Award, 20 Mm’ 21>0
ta iwc
‘k ii.i
‘•
I on / Lut
.
ot t lii. [orillulat IW is
ilit i iauioai
I’,,
./;j
r
,
hi I
n kl 015’ II,II lItt [1k lii 5 sh,iII lIt Rt OtIk i IJ 11 JULI eqUitJble treat
IL, 0. .1
\ liii
poRt 11011
.1011
511.111
.0111
‘et
1/lit’
III>
III
autorded
CJSC
be
i han ih u tqulIcd 1)5 imt 11.11 (linil .11V
1
all,
for
istauce,
\rtkle
( ie li R puhi
111k LI N ao
I
An
BI
a
it
I
mwd States!
L
(
2
l.
)
\iiijt li
tjt’s iu,idoi tI I
i’,, I
,
111k
Artile li titai
Roiiitni,, hI I
111 t 1 1,it
titie
i I) 11111 d Ntatsi 1urLc 1Ii,l) Or
\itiL 11 i
IIIII
dItt /aiie hI l.
1iietitbliip. ( Illuerte antt Nas lgatuin priavldilig
l rt.iii
.0 ot 1;:l1N Iji,iLI
1\L ilw Imot
Idiit pioteetioti aud secutilv fir their
Os Inti
roptnls. aud sli illcnos tliis tIspIll tiie full pioteutenandsecur
in
last
i. \
\i
01 IIIV IIU.IIL between the
nited
pezo
r
1 nipor
i
I k
fl I.
I
IL
i
i
1
.‘
‘
III
0
att’. LI
I),i»lLI
,iII)II1.ItlOIi [1 Jt 11 I ilOet not seem to
ci
I.
V
5
( ‘I
11
I
fl
ti 5
11,1
1115 eStnit lit
uiviroltment aud
I ,ssi.Jtlt il)
LIk
Ss
‘.
i’
‘L,
ZV’Jf
/
.111
i lo nu
1/
‘
II
frilt
5111
‘V
[k Isfil’.
io
ud I (1 tobtr 2 i0i
Sol’n I !s,f.ii/.s ,f ltd
In i 211(1
kR15 111 2. ‘\sv,iid, li iilt 21100.
‘ni.
I I’. UssIli, i ( 1k ( Jo
liii.
questioiis tilat
I Ll)ll i
Ila’ issard eveli
i
,.
kl (I
ni
‘‘
N.
I
.0
(
is ,a ing.
Ilki (I
i
thi
l0iL t 111)11
1(1 :1 .old ui.u[iI
1 I li. II u.iI V eL’l1i Il) Itit C piaed Jil
‘ni I lii. st (I dii
115
0. 1111.110 ‘\ts lit. 1151 sppIiabL tteat\ desiates trom
li 101 ti tIl Il i 1111111111
I il lit V il) tint il SptJLS of ‘legal
‘sot di III.
i i la’ t r.’.ii i 511 iii) to prot ide a eltar hasts for
dii. tleJt god 0
hi.v
t
id
1151111
IIt
IL
it ti i
i
li. Nt il llil [11)11)1 tit
ii th ssoidiiig cl tIk a iplit ,ihlt I reatY in tIie trnerpretatiofl of
.o alil ii’ 11111 p1ttetloIl .itid tetul 11V. I iii. svording of the treat
1111’ tri[itin.il re,isotiitig, bot it does not seelu to plav
ti Los, 1
Ss
11
KL
Stall
iaid ot full pltlwtlion and ct 11015 15 cxptcssed in a varier> ot
110
iurmuLu 1011
n
tlw Liltilit Ut ifl\C’1 10(111 fIat (5. [hus, il notild be teasoiiable to
1111111 )11 \OldHi0 ot the 111.11k’ ivads to ditlerent interpretatiotls
i i!l.11 I
i h i mdi id
i! tO til iriv at to I la it ho 10 isi ip bi.t weeu full protettion aud
1111115 nit il t 1)11 hiiiti. aud i ni aud I’qIILtJ le IRatmeut on rhe other hand, at
.lli lislip It unel I lii. lre.i
I lo
h.ised obligation atlI tlie standard of
anaeb a signiti
itp
iltil
Rit
litt
1111
Oil
(aril
(il
i’
11 1
I
i
1
I Litt 151K 111 I I il I
li
ni
1
i
1
i
B. ho ouie
traditional phvsa’al securitv is covcred.
1 I Ioweset. tlie trihittial does not oisider
ihe formulat en ofthe standard at dett’riii tii,.nt md cotnes 11) I til’ 14)111 lUsi fl 111,11
i be very defitution
ofititestniem
tnade
in
ila’
t
rt’aty.
Itit
.ts
luditig
also
intaughles,
speaks har ti legal
prolettion
rather
tltan
fol
.t
5
ph
sii.aI
t
ptotetlloll)
ki far liii.
!e),in’nJ t rihunal
seenis
to
have
rematned
JlOll
i.oitsideri
In
tip 111.11 I hi. LII ti 11 il 00
iO iiivestmem determint
5
hit.
Stope
0!
ipplaai
1011
i
f
Ille 1)1)1 Igal 011 ol 11111 l 0
teet jon aud
seturity,
even
if
niost
tle.&tiCs
eaintned
liert’III have a di III 111011 0!
invesIrnent tbat di rei. t Iv or i tid i rett lv i ni.
1 tid
1 s t nti i tti bk’
.
5
Ilie lsiemi’ns tnihunal,
lurther,
does
not
.ittai.h
[01110
ular
11)11)1)1 1JUlI nI t iii.
wordng of thc treaty
when
it
i.onsiders
ihe
stindaids
of
legal
ploletIlon at il kgal
securttv and of [air
JULI
equitahle
tteal
ment.
respect
ivels,
ds (4111 sitigle st
despite Ille t’act tInn the treaty [lsts iliem a to separate 5
tandatds.’
I
A.Iso, ihe Azurix
°
2
aud
Oil
t
be
identab
axards
otisider
11)1111 l} dit obl lgallon
rekaling to [air aud el
uttahle
1
treatnient
and
to
t’till
protel
troll .11111 ‘(‘1 mils
ut
sptte of the i ircumstani.e
that
the
tespei.tls
tt’etltles
e
I ii t lietli a’ iss o ss’pdt dii.
obligations. ‘I be Azurix
award
openly’
reeognh/i’s
that tlie two stand,tt ds ppt.ir
in tbe treats as separate obitgations. but pro
eeds ne\ertlleless ti) appli ihetri .15 If
1
thev tvere .1 tititt t.
‘
,
15. I
us i 1 i,,’i. Li
Anoihei example of an award
tbat
(lot’s
1)1)1
seeiti
to
attai.h
i.
Spi
Ila
iniponi
anee to he wording ol the lteatv
is
thi.
deetsion
reletitir
rendered
III
ti ild!
li. liii. trihtiit,tl iiolds t
hat
standa
the
ci
rd
i’til
I
l i[1e
1 111)11 .11111 ti,’ tilItt
extends heyond the protei. tjon Irom phy sii.al i titerli renl
i.. I be sLitt ing ix 1111 for
rhis reasoning is the wotding ol Ille treats,
whii
li
dtos
1)01
iflefll
11)1)
I
llt
itordi
‘phystcal tuterferetice ii.1 thus does
not
resti
1
i
ihe
t
SI
id
oi
1111’
OhIlgal
cli
ti)
proteuton fram
pllysieal 2
interi’erenee
’
.
‘liii
tribunal
theti
reh’rs
VXLetisi5l’l
to
arbitral jurisprudence in support
of
its
opinion
on
Ilie eVlended scc[, cl ha
’
1
proteetmon, VI 11111)111 colnmenting on t be l.1’I tli.tt
1111’ urisprudeia i. I etu red to
in hats connet.tiou is based on treaties
thai
piesent
ti
t
1
s
riet}
ot
fot
innlat
toll’s:
proteet jOn J5 .1 specification of taii aud qtnt
able
real
i
11
1
Ic’lit,
full
plott’t
11011
at
.1 separate 24
standard, aud full proteetion at a separate standard .11)11 rett’riIIt li)
i.
publie international iats’
It tnay t hus be toneluded t hat JI bni al pral tae does 111)1 dt’em I Ix ssoud
ihe treatS at decisis e for t be 51 0V of applii..it jon ol lIte sta nda t d ut mli
I
“
i’ dl 1(11 ii’n.i, ,ihos
i.
p.i sa. Sc i.
Ihol
lOrd..
50-i, .1(1’)
I1
ft1’iX u
i çefl/snd, ,iI,s wt’ li. II p.s li. 4 18
i.),, de,n.il i l1,’li,IåaI’, .4111)51’ i. 12. 1111.4 5
i 115)11/1 i’ .‘liYs’uhln.l. .1115)11’ Il. 5 p.ir.s
i I V
Netltr1ands/( 21111 RcpuhI 1511 .i sol ‘V 1101 I 1.1 Ild” I ci 11111 Ol
0 Republit/Slcvak R
(‘het
’puhlis. 111 I ,ilid 1 liltId Is ullgd,illi l’ pi lii I
1
I. !nited ktati.s cl A rnersi.al’k [Cflt 115.1 BIL 511111 Snstt’ s,I ‘5 I1II 51.5 I’, snill
cl’ k nss,’ric,s / I talv 011
ing of
°
21
“
NI til’s
Iik
)tu
uit
kl! aud
tOtIUJICit
iii iv
ett
sVileil
111!! I>ie noe
1k)! c\
ut the tiejts.
e
CII
tiii”
div
:ir,i
IVSIS
ut Ute
(. International Standard
question
starts trom
\ttiui.uI Iss.t d CufltCtjliiCS dis USS 55 tetliet the standard ot tull proteerion is an
;;hepr ndei I sttidoJ to h ided on h bast,s ut tbc applivable rreaty and ofthe
i an nistauuc is ol la c ase nr whet ber v ustott ars international Iaw plays a role tn
deteimtitint; uss ontent
sven Culioss rhe appi ed tueat ies li ive
ariet v ol fot tnularions regarding
ute teLit uuidii
u bet sseeti tlte 1
1
urotes tinn ac oruted lw ilte trearv and rhe stand
ni piote. tinn e\isuiitg under geilelal international law. li does not seem
il
i hat i tuese ni nuttlut tons at v gisett a des usuve mlv in arhirratton praetice. In anv
v i se. iii at hu i at inn prac 1kV t be va riets ol a pprnavbes taken does not seem to
has c subsu uiuu iii onsc qnenues in tespus i ni tbe v oncrete application of the
standard.
Iluca .tie tbiv i iieoteti dl apptt.teltes ru uhe question: tbat ibe standaid ot
ustunuarv i iernat k tid luss rept esenis ille sviling tur the obligations eontained
Le tiens, tbau it repieselits div tlnut, nr tlu.tt it is equtvalcnt.
iii i
International Iaw as a Cciling
‘
I be sttnda ai ni nuiern.ttioitjl lass is sven as a veilittg in the inrerpretative note
usstied to .i tide ItSu li ut ilte \A1’ l\ by the Free Irade Commission in 2001:
i be note siaws i hat tbe obligation to provids htll sevurity and proreution in the
s
i I \ dnc s not reciutte i I reatment in as dition to or heyond that whieh is
ustntn,irv tnternatinnal law minitnu in standard ofrreatment ot
reciutieci b ila
ti iens
lit inier 1
uretat inn lias heen deemed to be binding by tribunals applying
tliv N;\ i I
[titt 0 is not nceessarilv relevant in other disputes.
28
international Law as a Floer
i
i I
\
“s
i
ur
li
i
I
in
i
5,
on
J uuls
,tiliiins
0O I (us tulihir
ti
hrip:?/ww wdfaur.muesi.gvcII
.\ . i i 0 Il ) toher 00 pa ru I 0
iii i)!). Ot dt.ti iii’ liii
150t)ttOfl ol ihe NAFI A
Ow sr.tuudard under other ireatles. ee also
iukrpis1ttIitfl ni
)IT.t
la
I:O i siitu
( on in sunt i
i ni:
I.’
,!1J1,’tI’Cui Il.
0, s.
i pu
Is 1 il’uin I in i vin is i vi roent, iii, tppls in
a trett v tbat requires a treatment
to les tas ttbl t hatt ditt tegnired by inteinational law. aiErms rhat the
nd.u ni I Intet il ti iOit.t i liss is to be u nderstood ds ti tloor for rhe treaty—based
i:
I’
i
i t, s:cudrii
I
(.
InternaIlO,Ia/
Sldni/arlI
Cnis
i i’
2
protevtion.
ihe
trihunal
eomtnues
notiiiig.
ltu)SSe\
ei.
liiai ii is not ni niovi Cil
significanec whetber international [ass is il linor nr a veiling, hvu
tla sandid
of international law evolves, and ihe cunte n ot be obligations is ibstaiii ualis
similar whether interpreted aveording to ihe ordinat meaning ni thc i reauy s
wording or according to the standard nnder interliauionCi I lass,
International I.aw as Equivalent
p,ti.’
‘
:1
I
i
‘i
ull
/ A ;s:’ ni
in
:. ,
reaty
‘Ihe trihunal of AAPI. ti ,S’ri I enke, applying ,t treaty tbtt dnc s tiot nientiuun tbe
relarionship
bctween
the
standard
of
intet
nattonal
la
and treats proies tinn,
affirmed
that
the
treatv-hased
proteuttuuti
is
tb
same
protevtiun alinuds si under
international
lutw,
aud
would
be
applieable
es
en
iii
div ahsettue iii i spe ta sLiuse
in the treats. ihe tribunal analvses the wording
ot lite treat and aifirms tliat
the wording f il proteetion pussibly suggests i itigber degree ni resp itsiiuilut
than the cttstomarv standard, it Nevertiteless, the trihutnal ends up Cil5 ing thv
minimum statidard of vustomary international law,
Ihe trihunal in AMli Zairc, applving si riestiv tbat eunsidets ilitei litilu nu
as a Floor for rhe treatv proteetion. assu mes Ibut lite tt eu obligit inn has in be
vonsistent with
i
the
minimum
Iasv.i
required
by
international
Also, ehe tribunal in Noble Venture.’ i’ Roma,i,a, applving a t
ditt pro
vides for treatment no less favourable than requtred by i tatt national iass, a lit ms
that it is doubtful wherher the treaty obligation is larger than lite genviil duuy
to provide for full protection and seuriiv in eusiuntar iilteFnttiofl.il i.uss. lite
arbitral tribunal rendered its decisioit in respeut ni ilte s iolattnn ut i be in I
tection aud security standard exclusivelv bs reierenve to the l( s des isiotu in
I
ELSI and comparing the set of hiuts in tbe two vases, alt bougb tlie aoudiiug in
rhe applicable BIIs was quite dilferent —respevtiveh, full
Protevttoit and syv ur—
ity and no less than international law’ in the treaty hetwc’en tbe I nuted Ntates
and Romania, aud the most constant proteeliott anl sueurii md tbe i ull pin—
teution aud seeurirv required by international iass iii t be tie.it ht 5 seil t
Unired States aud Italy.
Even If not in the context ofa treaty on investtnent prntec tinn, i ut, I ti ‘otunmi
tribunal recently vonfirmed tlw general at tiltale ttken liv arbiti itunn ptis titt
according to wbich lite appli.ation ni thc standard under intertiatitutual lass ssnuld
not add rnuch to the proteution accorded by lIte .tpplis ablu rett’..
‘‘
‘
.‘
A.oarts v ‘1 uuruu.una, ab) st’ n 1 pa ut 0 I
u
bud. paras 6’i n ueq.
A.41’I v Su, len/ca, .thost’ n. i pris tO Si.
.‘
Ibid.,
p1as (i
(0).
u
4 ti ‘li Zaurc. above n. iS. pa ras k.IU,. ut...
“jo//i’ I ‘‘,i1ur,’,, i’ Romania. abovt i. I 5. i’a u I (,i.
°
(l’iuine/
Ib
l’u,inu’/
(rou4f i gfrutit)cl. /t,iu,( i I,
oJl’u’atice (Furuutn,i,u I), Part ni Awai d. .11) I aiutua rs
(1
I
u/ I;tnt:in
i
mo
1). Physical a1cty
ulL
.
ull piuru on and si ni us Lo in undisputed sipe
00 10 çI1SUR
Ila (iIol
ni persotisand insiallations
0
500 si iii pius ual atr I
.is
be ass ord rciudered in
pi
t
Ei
is si
il
Iii
,uun an •hIianon ro preserve ihe ptibhe
ubed
uro uS us 0! pola aud puhli puwers,Js repeatediv
ut ULl
1
:Ue1
>uted scope ot opp! ation
1
li nuudjs
undei il urit in i la I nu uutunui / \ssatd.
e1 r i isi ni iolI 11) i 15 il st I Iii a si pits ti al suoienee as arnicd in the
i a s ud
(aiisaiit
us
responsi
n
5.
il iii
to
le
la .IUI
not
n
1 LI
i isi 0115 stil
100e Icutust ss In n he ploeLl on is duceted mav be aued by
otiteris ise 1w .ittrilutalule to i be Store, nr m.iv be caused
I.iti li o.un
lule
to ilinu pdrtui
hen tli pius si il d.nuuape is dnc to i hiri part les, il does not seem rhat arbi
i i upliri s 0 Oi ta uhir connec jon ol causaliry to ccn.sidci the Store
i rot inn pu i
IuuhI hus i hi / ntnlan,u / i ubunal alhi nu withotit fnrrher ado, that disorder
°
na i’ Evjt sirnply not ices that the
i he ti ibun i ut
is ii i ruulut dii i u iI t ati
ni
Oli ol ihi h. nilul .ituotis takt. ,l0ainst Ille investor.”
i
iru[uiital iii /umsd i .110501) siiIli5 1(1 ,i51i1iW .1 iCrtillil cOlliiectiOIi
teiSsiLli tlte iuarnuuil isufils III! tlue Stites h lasinur. in that it iists
,iU.iii
Ol
i tIt
t lie aut tor ras i i not en ii ta e o support the adverse inovements
hic in tisat oflfleCt1Oi1.°
0
as oua ut ila tiasons lot not orls1dcrInV isle State lj
I li ss ru ur i ruhu ni I ni ugl il II ive mci i1ioid the abser ice of ru is ei li umstaflce
aliegation i hat the Store bad played thor role.
i hr elaumani
i
ressarilv an argument for alhrming
s ti ki tar in thr iss aid is
horut les ene nu r,teniCnt Is a rrerequislte for the State’s
L
i li ni e. ut
the
,
‘I’s
0. :01
Oss.
,,‘,
‘
I
i0
jUS
I i’.iLi.
ti’
s05
i
I1S
p.ira.
liii
.0’’
i.
‘il i
uuipuuu$)
i.
i ti lure\.uUr ni 0 Iii oiis.lite n to le e\piaiiued in lighi ot ihe obligation
i
ti sinidird ni toll proterti ti and sesuritv: the obligation is not
utsu i ig daunagi bot ti eei i se due diligcncc, nr take ihe neces
i, i II lii 10111
at i i Ur 05111 is ut uVula nr i, in order nu pies ein damage. 1 hus, lite obligation rnay
lo is diii i tur Spi s i is i ni ila ou ugnu ni ihe danuage. Whenever it falis within tite
g iliL tUl I to Iliot nu in utulirfirinri, 1juni to rio so is a breah ofihe obliga
i n
u I ull 11511Cr 111111 nsl ser ni i
i’
I
‘n i,’, i, .uhs i I
itsos
1’
:0,
‘5/
In
Forms of Behaviour
ål/Igene
1).
!!‘1’itii/
i/i [i
Ihe rhreshoid iii ronsidering the standaud 055 lolatrul is i tilsi i luugh slikt 05 st iii
be seen below, Ille obligition to provide i ull protes 11(111 i ni sri nint is us hat hr il
if rhe Store hos taken some measlires ni s igii ita i ihat Jo tuni se m uturr uso’Iable
md the rnom for sovereign .uppIeeiatlon us uluuite ss de.
Ihus. tribunals tend to OeriI)i rite masut is takt ti bs be States us ssl li i liii to
meet ihe obhgation. As ss iii be seelu heiosi ti is ihe la k ot me,isiu res ti to’. cm
harmtui eseuts, the laek ni meastires tO 10101. Ille sutuatiun plint to Ille tiauflutrui
event, or rhe laek ol i mposut inn ni sa ni tions i hat iead to a s unlat inn nu dir st aud
ord, as in the l’hna aard. Il measures havr bren taken, thr thiesluold lot riui s
tioning ihem seems to be quiie lngh ‘Ihi / uiotunnu’/ ass ord, ss ssi Il be sre s h loss,
assumes that the measures talen ma se etiesi tonen rilv ti ibu s h,uv i auused
intolerable eonsequenees.
A notabie exception to the triburtals general Iluellilarlon 11)1 to just sitt t be
qualitv ottiw measures taLen is the inao iiv iii il1’1 r.S I.a,in/. \s ss iii be seell.
however, tIis part ni ihe award svis nriiiiied by tite iflhiliiuir ni liii uiisunai
l)ur
li
I
ti) par.. 01.
LI)’) u In 1.iii/a, .ihsr’ i i p,,,,
iiIi si o ahiuse i 0, psu. tI 11111
poni
484; Iiirnr/
“fl
‘sS I’
10
11
0
i
‘ur ii Is
:uni
i
ni
i
i
fl
i
‘1
il
‘
i
0’
si
-
Arhitral i ribunols olten diseuss iL’ quesu inn il liii itature <il u be oblug ti o is itus
ing our of thn standard ol full proteetion md ser itt’iis. lite i hat I pu is ,iihu 1’ sin
tude, as ss iii be seen beloss, is i hat t he sianda rd reuju des i Sota to XC
i si i tur
dihgenee don to ensure the safetv ol ilie ut vist tHeOl s. I li Is us ut ti i rett kU lii is
bei og an obligat din at mea fl s nr ohi igatioll ot india 1. Os p1
bli a
.11
0 ised
tion ofresuir, also refdrred 10 Os stri, i lahilii
I his means tht.u ute Stue dci mii
to have diseharged us obligation even il liii’ iiueasuues 1,1 ken to piotre! liii tilsi st
ment have not a.hieved the desired plnteri inn, as king as il hos ar ted dihuge stls
While the qualitv of the ohligaiion at noe nfeonduet .uud not ot ri sult is i xplu
eitly .tfiirmed in mosi awards, inueb tema Ins to be spen ilid beinie lite om tOr’
eOfltent ol thn ohligation is idr’nrifiable. .\s ille .155 ord in ille 1:, usufluuiin
.usc puus
it.
the
general
lassihation
ol
oblig.iiioiis
ohlmgatioius
inn
oI
resnll
iii
oil
tions of conduet, useful as it mav be tor sal toits plimposes is 10 suhist 11111
r lItt
is.
applieation in the eoncrete eireumsian.cs ot a gis’n
\Vhai seems to be esiabhislued is that a Staie is tatudet to ohi gal nuru ut
i Iuo.
md does not gram an lnsurance .Igainst dam.ugr thai mas ifici t tlur tilsi srmr Isl,°
nr a warranty rhat property shali ncvcu In 00v i ur nmstuilrs hr’ uo uiptrri nr
stilut I iaiailuu v
par..
1’) SI. .ibo
ihus
I U?,)1I)llli i .6 Si. li 15. tor lI
Il?,. i l:1/it. i b i’ n i. p1 .u 5
44 ihe Stutte is not under a
disturbed,
n 6
to
a
.
.t
is ln
/nil Prni
is tI in tite
el ti ilit tpet lit a
\e’sle siiie
1 i
i
“
f/im atu/
,Se urny
NI’ .10,1
‘5.
area 0 ss Itit li the
;‘_
‘.il..
li
ii
I
,iit.i, hivt il. 4, 10101.
governtllent
Ut 1 /aiic dues :0 .i ,trd seetli ti) have assumed a strid
5
tle ut
Ille II iI100JI iniirtned tilege taral iiess that the State is under
\i:n
bl it iuii ni tigilante 0’ Inund tlin th ohhatton was violated by mere
i i hr’ es ni ing t’al tt ni ihe damagi eausd’. I his line ni reasoning
tt agn li inn
os in suppni i i stort Iiahilit i be tribrinal aliirtncd that it did not intend
)IiOatit)ll of reslilt nr of
iie State is inu i Jil
ta
li, jeio,ie on ss het het
lit i ti inund ihat dir Niate ssa tesionsihle 1kr us unabilitv to prevent
OslOs i.
st iii t
eqllefls et ni er ein t. it i ir i ribrinril Ltd IIIIied tLit the itblia
not ni ilie N1tt is a du rhiipetie obligattoti. il ssnuld Lise been mote dorrect to
irfiut ihat tiw State ss is iesponsihle fot not hit ing taken sulfieient nieasures for
be prnter i on ni i be nsestnient, u,iu her i tatt nu not havitug been abie to preVent
ett ut ute titt ilinstantes ut ube ase. lorverer n is dtiult to on
to
ddei tbtte itenletli’ .n Ilerpulsuralir tuppirtiuig ihe viesv ola stridt liability;
‘si lit bad i et nrii iied i be ex Istetice ni the damage a nu bad
ou r I li
5 iii
ippa i r 111k li I .iu ued i hat it bad taLen .inv nteasln et to tCVCtlt ii.
fat tn sial lisitt ti i hat i hr siandaid ni full ptnie don md security is not an
nulpeulsate ab
ilamage iii. i ni. i aert an investuttent. but att obli
big.atiun
duligetite in tereuttun atis suh damage, iL reniaLns to be
I I.
I ss I
,
‘
I)
i
,,
I
ni 0/i/i tror rtdfltJatd
ritt
‘\ artis t in in it rr giitdeliuies as to i be t nnt’nt ni ihe dnc diligenre obligation,
il ‘si; ltt in
ru .is ute uhligatuitt to t,ike .iI ntejsures neressar to ensure ihe
tdts t\ ut Ille lirt’\tllietlt. in partustulat. ubete i’ nu rlearlv prevaulung view as to the
t.ii u re ii r I;, ittd.t i!. ss het lier it is uhiet ute nr subjective. lite latter view seems
i
i e takt i [i i be i ruhti mii iii I mdi i ( an Jr Rrpuh/i i hat siated that ute meas
eircumstan(eS)
rirt s in b ta tn stell i huse reasnutable under the 8
9
li s, hu Os t ti rot leir t titt ss het bru t h St at e hat arted in gmud faith nr n0t.
1iiii atfuti ts lIse eXlstUnde ut d sliduitg su,ale
ti
.1,’!
ii.e :tiPtit ,i lii
tiie si i higenst ho ti .111 old suhjeeiive triterlon to an
i .l.t orur. ta iti.i i 0 il 5
taid ut iglians e I )uue 1 Itgetire n said in tOOSlSt of uhe reason
5
rik 1,
aisle tiasiiir ni pi eseutt inn ss bih a stell aluninustered goserntfleflt could be
t’ per at
1 in t \t I titt undtt similat titt umstanres. Ihe mijot uty of the tribunal
i ho
’rinui ti
5
i ulot UflS uunius ersu il ss a, questionung tite procedtire
i it
il’ .5, ut
i i. sel il ittet it ut Nu i I .1 i’ La ut .u n arnied acu ion undertaken to
.00! I ut .lr :lsa ustlipleil h irstiurgetits. All tup nuallagers of AAPLs
ritt
bad lost control.
‘i’’
I
i
.
appreclario 11
i), 1
l
h
t;’i/
Sa/d
iii
were susper red of partueipat ung in i be
miii
ter
111)11.
i
be
ar
i’
iarnt
ss
dest
i-i
ed
du
ing rhe armed adtion; ute trubu nal inn nr
1 i hat i itere ss .is tti) I litt li isit e er st. ll
e
5
at to what efTeetively caused lite destrur tiott, i lossever, titt’ ti ihu nal tnnsideird
ihat the government should have tiied pearehul rnmnlllnlcatinn to gei titt sus
peet eiements exduded front the inesunu s stall helore underuakini, a nnlitavs
counter—insurgencr
1—urther. t iw tribu usa1 ioutnd th.ut Ille gitt erut metri ,buuld
have instituted judteual investugations against tise susperted persouts. Il buld
have uurderuaken necessary measuues to get i b’un iidthie idrutt, )u Ille Par i thi
reasoning, ute State’s responsibihity is deemed establtsbed,
51
A considered dissenting opinion pnint s ottu t hat ute dispiuued ar. inn ss at
a straregie ausd highlv setssitive secttruu opei at iltut to regaln roiti ml ni titt atea
of’ unsurgenev. taking piac in a situau not ni ttat nina
1 eutlergeut
5 .A.s urt1inr to
the dissenring opinion, tlse governuneuti svas under a suunpeli ittg sut ei eitt tinn
to undertake a milirary nperau ion to utga n rom rol ni i be are,u. litt, I mo og and
modalitues <il’ Lise operation, ihus ihe nuinotitv ni lise iributsal, tnust hai st ithin
the goverusment’s exelusuve ditt rei inn, and the assattl shouId not qut si hin lik
exercise by t he state ol urs own sovereigul puerogat is et.
30 vereign
If lite exercise of due dihgence is a quesu ious ni vemtf itig u be abiltis ni titt’ meas
ures taken to rear,h the airn, as tlse unajolits us i be ,IAI/ rase due’, i ht e is t ise
risk of interherence wit h sovereign appre iat inn ..is poi med not iii titt’ ti i stilt lulg
opinion.
ibid.,
tid..
tr
.
n
tO
pila.
106
I ti
‘‘I’ I?j’uOO. .111, i
il,Iit’r ar nilt
IllitrIls
I
ui.i.. tii,s.
II SI, abost
pa
litt
i
i..
i’ ‘I
,unsn,hi.i.it
1. li.
I
li’;
‘..‘
Lt.i’ianrir,
i
5
.u
..:
‘.
‘
i iii ,‘‘s
ti’.
:
‘
lite
prevailiutg
.uppuoaeit
ifl
;jrI)itrjtuo)ul
puarulte
seeutts
in
tore
be
ti, litetu il)
examine
wherher
thc
measures
taLen
[ix’
ille
State
obvlnusi
devu,uu.
tioiit .1 ni
soutahle
stausdard,
rather
tisan
suggesting
.uhuernat
ter,
more
eflei.
lite nteasurr
lise lntertsariouta
Court
l
of
Justuce
(I(
rnuthmnss
dt,
ihe Smaie t njoys a
J)
nseasiure ofsovereign
.uppretuai.in
in
ut
decisuituu
n
L,SI.
in
I
I ,sen il ilie autitnrluit s
were Ikiuusd to have tolerated the otrupatiott ol titt’
b ssorkers. be pit’
teetinn accorded ro ute iutvesu menu wa ulli iutuutd til be hiuts ute st.. i,i.ird.
Furthermore, even uf the legal system it,ud tear ted .itter .iuu undiun1tiettis i i
time, rhe proteetiots stas not deented to be beloss liii’ suattdaid, het aust’ ila i’ stat
a mechanisnt
its
54
plate.
‘lite tribu nal in .Saluka v (.zt’clt Ri’
’n/’1iu’ intind thai ute nbhigat inn 55.1k 1111
1
hreached if the State’s hehavinnr \SJS not tnualiv iuuireasutiable aud rinitistinable
by turne rational legal poliev; ibat nte,utiul’es i,tketi stud liol ii.itl%s cmi ille li:i,is
legislatnu ‘s dusereuuun if uhuev weue itit intalis devnid ut legal tIllitt mIl’. 115s1
ola
s
-
in
• Ibid.,
lrashin
V
O
I:
11
I’
I
V
fl
fl
V
/00
lufilk
/ot
li,
‘I
VJ’
touod
1//1(0
is
jul
otkO
‘O.I !(
1
to
i
,
dill lik
SUf
LIt
pUi)lIC
d lildililLsi
and tlicir rcaI
had 0110001V
mdci huonws
soscrcgn fipprociation
is Osti000l
iLo ,loThorItIcs
hull, V0Il
il
tiait,
5
h
ouid ,&ve boco, thrc ss is
101 t)Iddil( 0 with paratneters
lmmd
1110
[41 l10C.0
this
elilpioS
Iii
cos,
dVSO,
tho
heat
iIIscstmcnl trom unlasvtul
1111
n i
111
ti
c 111 1115
I’ oIl
ti
tttt
Ii1
illIldal
hipahiLIns
10 0\0l 1,0 000
1111
bevond I h sleal Safet
ot
Ild, I Is) I CpI’JII’LI In
[Ild au
U 1,11
k ioi
‘JS( hall
1l11r
rs dcl
VIl/li
fl)\ omI11
V.
t,l1L 5 Idi [[IL III d1
iotmd th
1111
11 IhilIldi
fl l1 lliTl 1
/
V
V
i
10111
V
t
,\iqnt
V
slid
111
I 11101 dlii 51 TIL
li
:ppIIeaLi0II
lik
pL I
Il’ ,k\ i 0 1,1 IILII
d
u
1
JIL mc.ooics to p101
11 I1OtIIJI
u-
I [IL
.
0 \\
Il) pI
ib
VV
tillOt
hc s
V
1V11
V
lii
V•
I
1
V
li
I
li
V
511
i
pik
LV1
,
ol
ot Il
sil
‘‘
I
VI
it
I
I
51.11,
l
i.
IV
V
pl Il
\s
i
1
Is
Li
1IV
Lo
1111V
I
‘1 11)1)0, .0 toll ol I li,
‘11k
LIII
V,
I,
5
II1\C5IlIlLiII
.
1
,Oj,
‘I tOLlI))’t
11,01’
ol ilo
.t tio
•j,,
notild not
,s,’.O
,,,
ti II, 111)1,11
511 111115
1(1111 ,1L [IS 111
I
bui
tO II’,
tor 1110
V
1515
i tilsI .1)10 I llt./L.Old. hit,
II IIC
III I ot III inss iint’ni, ibtd
51 51
1llII prIlpolIlons and II OdS
and n was due To
.ind piiblis (IIdLVI
‘iIii’so’
.1.,
dail
V
based on an lnv,’sl
addod aiirhin
‘i i .fi I I .lp)sal1 51 Ss) Iii III’
ti I is V.1tI1d ttd l Ull 1)1(110511011 ,i1I,I
VIVlVVl,
V
II
I
V
111111 lI ti 11(15 111,11(1 IS 1101
VI)
il,
(HVIl stat
V,
,
1
I il 1,1
liVS
i
151
110.
1111111,11115
I
Oil)
5
I,
si 1.1
5
,ii
01
V,i,Csi
5
10 I
•VV..
I
I li
‘.
1151
I
I 111.111,1 II
II
1,5
‘I
OL
VVVV
VI
,I1l
V
sIflhl,l{Id ,iild I To
jO
iI is
011110) SI
1.
VI.
III
I
5
5
VII
V
VV,VV.[lI,
n
VVlI,,ViL
.VIVU.V
,V,,,L,V•VV’,VIV
V’
CVI
V
,1V
siaiIJald.
Iii III I’\LIIOIL 1111’ 1 Il ddisi I)
ull pl000tlull and sceurilv
tIllul ri
50 fl i S,IIOI
tt I To 11150511110111, WI10I OdS others
sthct flSSdl(l5 LI) 1101 taLe ati 0\10S5 0Slti011 00
ItIlilOSItOV
UILiiIOoil 111111111051)11 applilahion d tlic standird. Ihe
oottsidci cd toC1 1101 with
(4110 ot lir ,iiud equitahlc
1V
111111
i
I
011
k[
t
‘
t
0
i
V
V
ViVVVV
I
V
1111
V
V
V
fl
ti
V
V
V
V
V(I\
‘f/
h din
Il
s
k
i
V•
[[[ Ith
1
V
V
0,
1111 i
V
.110
fl
Vt1IS
N,
ru
hL
I til
ILV,
1111
V
,,
V
jtltt
ns
ti In lflI/4
i’, II
tiL
1110
10
Ild
10111
p1
V
V
L.II 11101 1
cl 0
i ,iO’1o
V
5
fl
V
i’. Applo ztinn buv,u l/i
al
S/ct
Scope ofApplication Restricted to Phvsical Safet
,
(
/
.11105)
V
1111V’
i
,
1. ‘4
a’
t5ii.
.1
(
ptr Is
j/
’
1
ti,b/i ,aitosl I
JVjJV))
I
LV_
V
fit
i
V
)li
V,
45
iS
I
.1
tVluoL,it
i
,iootoi
.1 “1 I.
1/ I. il.
I
.
In 501110 ass a rds, SUL h as i fl Sa/til a i’ 1 xo d Rty1uh/zL ,° ti
10 t rihu ita is LII
rhat the standard du’s not i t’fer 10
110(11011 .ldtfl5t ,l 11’ Li ud ni itni dli 0k 111,
bot oniv to t ho npai 11110111 agatnst t ho ph sic dl Integl us nI tn i us (stoloril and
ag.tilIst IfliUrterslloC by 1150 ot torc.
iindispiiiol soc ))t .ip
ari tIL
5
l
1
refers. essentiallv. to en ti strtfc .111d pils ieaI VIt1Ic.ik0VtV
Ihus, lit Ilt’mi’tI 1 .
.Iexuo ihe tribtin.tI tounl i hat ihe
t
11)11 1)1 .idniin—
istratlve 0111 its at, a 000se(ltIL’IKe ni ,tdverse nl(ketflLnis d[4.11t151 lik ifil I 51015
acilvity WaS a violatioti by 1110 State of uS 0 )ll.itl0fl to
tait and t l4llltdlfll(
treatnient, 1
md not a s iolaon cii ilie staridatd JVIVTI1I pioleetion .iiisl 50(0111
SlmilarivV [110 tribllflai in
J 05 lusseol fllOasllres tluat 1c1 lit t1
tatlure ro ensure stablu and predietable 1111 0051. 0115 Il) 111110110 tIul,l[1IS til 1ll11\ 0
hanges, arht rat v 1nc)dthC.at not of ret4ltlalot 5 it tililesS I Irk vtctlal i Og [‘lii 111db
eXpt’Ctdtiofls, i11000SiStCflt administrative ,11 ts. c onhlnuing iegisiatis
liangt’s
undor the oN igation o au ord ing iaii .111(1 0(40 itahie tue.tl ment, i nd not [Il t.00
neettun witlu the standard of full pluteoticln aud SOs 1Itlt\.°’
.\lso
Ille
irihunal
111
i’
I’O/d?/d
11)111101
111,11
.1
1115 OsI lbbc’111 LIlllldlO’
stabie
is part
01
1111’
obligatiun
ot
talt
.nud
0(4IlltflhiC
tedtllleilt,
I
lot iii! t’ti ‘101111)11 ,l’)oI
65
seeuruty,
‘ille
itubunal
tound
t
hat
1110
I
ttVestOrs
rights
had 11(011 1. ioiad, Iludt fl
WaS
ahundanr1
elear
that
tise
treatment
aoorded
1(1 11 s5ts itnfati dikt 111(41111ahie, that its coiltractual i ughis 55/OtO bro i
,hed atbitrarik ,111c1 for pIliltiLdi
1
tldtlunaliSt i rcaSclns. t hat the 1115 stur 11.111 hull 0\p (Seol 0) fl 11 I)11i1.ifli’t)LlS .1011
shueking eolldUet;”° bot 00110 ut this 50.11. outtstdt’rs’d to be .i hreaeli ut 11111 fl
teetion aud seeUrity. ‘Ille 0I1l reiireuuee 111.1010 10 11115 standard ut tlis’ ,iss aroi
relates to allegations ol harassnaent th.u tiie tribunal, In uses er iound 1101 11) be
suhstantiau,d. li 11)0 alieged itarassmeuit had heen repeated, tinn th), IL oould
possibiv have been iiabuluty under Ille standard ut full piuieuion .itid s&c u ruls for
failure to prevent ti.
As alreadv 50011 III respeet ol tlie relat cnshup betsveeti ille I leal prules 11011 ,i1ii
international iass, .1151)
(Olbneetiofl
li)
wttli
ihe
toll
ni
.11
Itlo
nulleOt
.tIlplII
tuon,
the
wording
of
i
be
treatv
not
(10(5
50(111
to
etiti.i1
a
rule.
ss iuik
phw
Ihus,
the nlajority
of
the
treaties
applied
in
the
nietitiotnd
,aSeS
abost’
(onIdluk
1111 oblu
gation to ensure
Inn
kI
I
proteu
.15
Ild
seo
fl
10115
.1
SI’pJ
ratt’
111)1
1011. 1111.’ Il L’,lls
igat
applied 111 Ille
last
mentioned
eotusiders tle St,111d,1ld ut hull prole
ease
5 1101)
Ille Ohli[4atiutl Il) .10
0d t.ttr ,tiid UOILIII.1l1l1’ IleJtfllufli.
1
specJhcatioul LIt
,
1
Sa/uk
ISt
.11)1)1 il
i’n/dUhi, .thI 50 i..
/UIAVIi
/1/1 510.
pari
1(1 )/J,/ I
Ihid..
urt III 1’
/‘SJ’ti’
jV
.
ihid., pai,11 .120.2)1
lhld. para 2
14
/‘u// /o11 awn i,it/
Securtiy
Seope of Applieation bcyond Physkal Safety
o/
lite hçi/
Itlem
ass aids deem ute stamlaid ut full piote Hun aud sesuriuv to extend heyond
he mci ph skal salet ut be i msi ment. \arious degrees may be detected in
his C\is nsloii ut tItC 55
ut applis at ton
li 4JLZ()1/1()
Ihe aditiot al scopt ut alis auun Itas some tantifisations that go heyond the
mere s Seis ds ut poii sseu s. I his sunsei ns, pai tisulark, the availahility ofthe
udis ia I aud adniinist at is e ss stem to prutes t the intet ests ut the investor.
I hus, hs rtbuual in
na i I ept lou nd ihat one of the violations of the obli
ted ss u li full protest iun aud ses urity was the sir<umstance that
imposed an sanstiuns against chose who had unlawfully seiicd
the Staie bad
not
gat mils sonites
fors not hee i s iolated
t5
\lso in I mul i JI(xuo tbs riibuital atlirt ted that the availability of tbe judi
s lal ss sis in ss as an s lenient ut i be full pi otes t ion aud ses urity to be enjøyed by
ihe jus s slui In i his spes itis ase, howes er, in telation to tbe investor’s attempt
to i s ei se i h
5 adm mii Isim at i se measures t hat atlested thc ins et,u ment, the trihunal
louud that il e lsgal ss stem ssas suffisteutls as atlable aud the standard bad there
Sunilai is bom the argumentatiun of ihe des ision in F’SI il seems that the
Intsruational ( om t ut tistise sonsidered th asailabiltty of a legal meehanism
to s sitt i h lass I uluess ut ulte iequisttion ut ihe plant as an element of the full
pioti ion and ss ui uts to be eutjoed h
5 the it vestot. I loweser, in the speeific cir
umstaus es t be i. ourt thuud that the legal msshanisrn was present and that, even
ti t be tinie ta Len to obtat n a ds sision 16 mo ti bs was undoubtedly mo long it
sould not h Isemed as a denial ut justiss aud ihe obligation was not breaehed:’°
Also ths i ibunal in i snu/et i ( zt /1 Rspubiie afhrmed that the State has a duty
to ksep ths tidis tal ss siem as atlable aud to pruperlv examine claims and decide
assurding n doins stis aud intet national law. I be tribunal fhund that titar duty
bad not besu siolaisd in tltus spesitis sase
imiLti Is be ti ibttnal in Ssi!uka i ( iih Repuh/zc aflirmed tbe obligation to
makc asailabls appsal mes hantsms agaiust polise searebes, and administrative
des tstuu s alles ting i be tus est ment, It alsu hat id t hat i he obligation bad not been
iolatsd in t Us 5lW us s ase, 2
1(5
i ÇJslI sunt I sli stil It1(//’t ute/i ut
sum ss au s go bs md tlte iesiuirentent ihat tIts State makes availahle its judi
aud sdi iim ti atmse ss sts ut so tltat the insestur san protest its interests, and
s ial
5/, .51)055 fl
9 55 15 /fl abos mm
li i
/
515 ‘15555(5 ,iboss’ .9 pu, I ‘I.
9.0 I
1.
Iispuh/is Ihoss ss 0 psss. Sli.
/
la i /
F. /lpp/lLarion beyond PIlys1cz/Sil/efy
Ii
expressly affirm that the standard off ull pr testion and seeuutty es.teuds to the
srahility of tbe investrnent elimate and the Iet.al trainework,
As already seen above, the award in 5i
5 uns’u v Ars’utu,ia has ,t spes ial basis fui
afhrming tbat tbe standard ut protestion mteuds to ihe legal sesuut5 ut the ius est—
ment aud means, substamially, tbe ss’rtaitlts ut tbe legal system. In parttsular, the
wording of tbe applicable treaty explienly reters to /egsu/sesurit), as oppu5sd to ths
otber treaties applied in tbe urisprudenee ibat is examined here,
Anothcr award that atfirms tbis large ondt rstandiug ut tbe standaid is MI i
(zech Repuh/zc. ‘Ihe majority of tbe trihtinal af{irmesl ihat tbe Suate is under the
obligation ro ensure that neither by amendrnent ut us lasss nor b aet tons ut its
administrative hodies is the agreed aud approved ses uritv aud puotestioi ut ilse
investment wuthdrawn ur devalued,
74 It must be temembered, hossessi, ils st this
award is aeeompanied by a disseming opinion. Also, it niust be nottsed ihat the
CME tribunal comes to a desision opposits’ to ihe des ision taLen, on i be same
facts and substantially between the samt’ parties, by tfse tribunal in ihs i azu/s i i
czech Repuhlic sase. For thc sake of c omplemeness, hossever, it must be pututed
out that the Lauder award is decided on be Ids’ts, aud that it s annot be takt it as i
position in prtns.iple ut’ the tribunal agai nst tbe extenston ut ths’ sma ndaid ut isill
protection aud securiry to the legal sceurity. ‘lite it ibunal found in laudu r that
the amendntenrs made to the media legislation wete not a tbreat to the lusest
’ It remains open wbetber, bad the amendments been des’med astualls
7
ment.
to affect the investmenr, the trihunal would hase sonsideied de standard d full
protection and security hreas hed.
Also, in (.‘,SOB v Slovak Repubii tbe trihunal found ibat the Stats sondsis t ut
the interpretation ut the terms of the sontlast deprived the insestor ut aus mean
ingful proteetion f’dr its loan aud titsis hieasbed tItt’ s oiuumii ment to giant full
proteetion and security.
76
Recently, rbe trihunal in l/vendi v tlrentuua Il rendeted an ass amd that estsrm
sively examnines the seope of applisation ofthe full protestiou aud ss’surits tansi
ard. As already mentiormed in sestion B above, the tribunal metetresi to pus’s ious
arbitral praetice and made an antithetis interpletation ut the ttsat5 basesl on
its wording to support us opinion that the standamsl apply to 5
mny ai ut meas
ure which deprive an investor’s invesiment ut protest iou aud t’u II ses si ru s. ‘sus li
aetions ur measures need not ibreaten phvsical possesston ur lIte is gallv piums’stsl
(lvii’
i’
(
ass/i
fl
5
Rs’pu/s/zs ahsss< ss
Su’rns’n si’ ligs ntiim, ibost
ti
,
(il
Si.) I
pira
sa
“.
terms ofoperation of the investmem.” Assording to uhe tuihunal, the staudaid
can apply to more than physisal sesurity ut an iitss’sts>i oi us piopsu ts,
s.ause
either could be subjeet to haiassment witbout bs’titg pltssmsalls bai uu,d ut ss ijsd,
‘lite Award does not identify an> furihei tbe spes ifis suutent ui iltis siaiidamsl Iii
‘
6
,
I sjiS(/5’7 i ( ass/i 1/spiSs/i ahost ss 1(1 s,sma il I
( ,5QJ v 5/om sil’ Rspmsh/u, ,iIii,c ss
‘
s,st ,i I
ISvs’ndm i .4 tssmustma, .iho ss 5 pa s,s. a I’s
:0v
s
Li
uoro dl
ty ar mer
ca
.ts
(j1V
ivkuss
V
.IbLV
V
uIts
/ all Jroh 1w i ani
50 on,
li
il i
tu’
aud
11111v
arttt
sards v/e 111 to ipplivd rhv standard ut full pietevtien aud seu.ur
os vis .is those lov nr orivd Rbes
Os v it i hougit they make no express
e,
t
itr unnv toll, i heso us
.tpplicd dro standard as i ti was
.iid
t1
ni.tblv ([uRtI000t. liws sviii be exain
r0 nu
ut ro t.ft
ihunai
liv
ti
div!
iu
nrvntloii ut siolatten et
i.’,
Oil
sv. 1,1 li
st.lnd,IId,
an
i
dmvd
.ih ihe dotltins and Omis—
iOt
ru liv tijrv as a violat ren
i
pr i m. Iple et fatt and ev]u itable
lK
I ho v arg(Vd sv
of
iblig
liv
ion
rchning to full proteetlon aud
01k
\%% Otlirnivd hs mliv trrhuiial
by
i
00 tpp!wd le the favts of the case,
nett mdv by- hroadlv dehited as an
nv:Vr
XtOn
I rrtiu
syv (11115,
dl
lOvVyl
m{l\ .11v it to urO ,idJtvt.uitl
V
VIS
11v
.
V
,
V
vVv
V
otlwr Standards
v rtrrrvnr’
nu
v
enipat
v(lIVSidCf
ujt-
to
air o is obsv i ed i
tron
u
II
ah
v,
werdrirg
ho
vn
ihe t reat les applied
tI tI
v
mil (ti s for vin mo has plaVv
e
i
srgn
I
i
tiv
ani
rele in the dcli nitien
irv p: om .ippln .uiruii ui ute uandard
auard
i
iii
rendered in .Sanit’ns i’
II ‘ull
Is ass ud i har gis v’s PR iv ular
nuderation to the word
Ing vil tltv ti ar \invv Illu lU I betssevn ( rman .und Argemina provides, as
mv nr oirr (IV tror lvg.ui syv u lit I liv werdrng v div’ ei her treaties upon which the
d i: ro:t 1011v vi bor v .um v based .u v nei v
.ubl. \X’h ile i be treaties applied
:n ir i
E uro,! tur uiuv l5 nv.’ jjr’vls
ihu tsso obliatiens as separ
i v nivauv s ll kv! 111 i ho
‘i1i and in liv ‘trond, Il awards v,onsider the
11 .tt nOt full pr otv4 to iii is a sjiOv divat lot oft be ebligation avv ord lVair aud
VI
L(U1ldi iv r
()‘verlap
liii ull mr/lit
J,VSVtilfllt)11
V
i liv rirg it iii ro ranr full
0v tron aud sov
its
in
has
uneertarn
an
border
tn
i, ru
)thv ples rsiuns irsrIaiis veniauilv’vl in nvvslnldnt
treaties.
By
tar ihe mest
.rnpor 1,1111 IVI ro, nisiv’ ihar rvvIulrius a ,1rei til vil itdtii.ii iou IS that
biir aud equit
,ibtv ilvatrruv i, Alsu, ute pr srsIeils on rvirnbrirsetncn el damages dnc to aetions
voirthat i Sv 0v vasroti rlls hvert vonsrdered as overlapping wit h tise obligatjon
to i pmoit v uten a rrd SOv 11111
iii
Il!
i
ViSS
,
‘
i
‘us
-
‘1
1
i,
V
stri
5
i1’\
1. 0,
i
.0
I
‘i
,
1
paris
.1
e}n,
inlS.
it has by v n pi iv tt is i fin ru ivd in in bli rat et I r.tv rive, idr exaniple by the irihtrnai
III i lit
i (I 1111 ltd 11111 I liv I h1 tgi tlu at off ull pie tevt jon ,i ud sov i trity may be
v n tvv’
:f il jls Siv.ll s elv’iivv et dam.ge evvurrv’d and gees bevend poliee
Om ‘lvr
ml v Ild IS nmivdint il) svnr’v’ lite mvvstirmv’tri 80
vliVIiOllIlteltt, Simultaneouslv.
.sivl lv et’ nr ‘v d aud vn vnmphasiivd ti .11 i hete is an i mer Vreiationsh ip wit h
In, ut I ti) ‘ti .ltO f,rii .urd t’v
ttitablv’ treatnlv’tlt, aud found rhai ihe State Luled
1
tv
lt(
i
I App/icatton In 3vm1 PI’yia ni Sa/i ty
14
le provide lair aud eqttttable treatniv’mtt .i id thv’i’vluo,’. ssli liii
5,11)1v lv IlOtIS,
alse breavhed tlre ebhgatien et i
iii
pruutev
[Oil
.111v!
sOv
iltit
5.
1
1
1v
i
riflUrLuu
that the two standards dro oloselv
interrelated,
aud
referivd
re
cai
lier ti ibunals
that had found that the obhgation et full proteuron aud sov ni
svas hrvav liei
in
hecaun’ i be i uvest ment ss as suhev
i
to
nu
ni
arr
.tlld
I
1
nov
ti
itable
ti
eat mvi in ,ts ull i Ilv
OcczvIenia/ i’ L’utlul(/Or 0,150. til’, veliversy
is’.
teund
1,11
i
bi
(‘,lv
i
vil
I til i Iriev in’n
aud seeuritv causes a breavlu et ihe ta:r aud equtiable tleatlnerll
si,irivlatvl, is 111
Wena i I’ypi. I he tribunal in Azu,,x
turther
potlitevi
Ottn
hat
i
ru i lIv applivahiv
treary hetsseen rhe Uutted States aud
Argv’trtuua
ilie
tsso
obIiatiuns
ei (ull piu
teetion aud seeurltv aud tatt aud ev
uiiabie
1
ite.lililent
arv’
sup.0.llv’.
ds liv i uS v’rv’ III
tbe treats apphed in th alorenreul ioned
()
cidinial
award.
I be i ribnitu,rl uuutrved
thar, neveriheless, div viulai jens of the
fri
li
ptet
don
arrd sev ur tts stand.i id is
utnsi&red absorbed in dsv’ uufair aud
iurquiiablv
tlv’armelit in iliv 0 :11v’ ilal
award. IheAzurzxasvard alse dues so, agdin 111 s
iite ei the werduug et tiiv’ trydis,
1
which consaders i be wo stauvlards .is sepdrate.
5
‘ihe line oftlioughi ut tlie atureineuttriuvd
0’
Idt
lltlijWarvi
Is
ili.t
ito,
stahtliiv
ef the Iegal aud hu.siues.s l’rarnesserk is an
essetu
ial
element
of
titt
oblrgatiert
to
avcord ro the invesi mcmi, tatr and vvjuitable treatmv ni. I Ihe ti nbumr.iI
v’stahlislsed
that thcre bad been .i Vaelation til [ho tall aud ev
u
1
it.able
ire.li
111cm
ellilgat
eie .und
aihrmed rilat li becomes 01001 to elrqumre ss Iretlier to
.tddii
toll
tirery’
SS dS .1 breav i
ot mil pretevt ion aud seL ti ru y, as a treat I ueni i hat
is
mor
1,11
r
aud
ev vrrtai le ,itttr i—
maticaliy entaiis an abseuv e et full pretev don aud St v 11111 ei the
1115v sir st nt
Aceording
,
-
to tbe ti ibunal in Ou’u tv/et: full l’ I n,tdur’, .rItvrat ion ut div’ iy a i ,uiyj
busiuess ens trolimeut in ssltkli ute 1115 estineilt 55,15 111,1(1v’
tsa
s
i,dai
null
el
liv’
ike
stanvIrds, as bodi tan aud equitaiolc tl’varuremii .itid i dl p11 11ev en
i
driv!
tCv tiun
u
I
v
uar
,pu
r
‘I
i
is
‘
‘VI
pres
hull, userlaps 5511 t rio
.‘l’tiy
lit
t,,ri
dl
v”
snIvi
by i syv tor ti I nsrt
’d Si ro s miv! 1’
5
Is i 1v’
rvles ivin iitt rshin,sttv n trtv r unv i ti
V
securiry require rbat the State pr ovides stability and prv
div
tahilin
In l!/’r i 55
p1, lise rwe siauvlaids of protiotturut haul
3
L’t<
alrtavls
1
by
ut
dv
iii
witb COliv ut :eitrlv aud b
11 ttd s’ioiatd, 55 11111 til sl)o i s ing ss li lvii .1v i lurt’ (1...
v vi
wiiieh obhgatious. lite deseiipiieu vii hr, tavt.s lIt 111.11 v,,,e
vufll.lln
hV
huS
0
.0
relatiug ro phvsica i secut it,
’ ie avail.uhnl
5
t r li e,al ss
ti’t
siv
irr
trt
ry
trr0l
I
1.
prevent ion er prost i ut ton ei ll) sk a
1 via magv’.’ ds syv il
ny
as
fl
ila
I
i
115v
g
Whiie the ft’rmer 1551) torms et bv’hay mur ichtte ne Ille ti avhr tinui,il
I
ti[
A
valien ot fitlu pleteutioll .untd 5v’v’LlritI’ tlie l(i[lvn ialI ss
itlun 10’ ,tfvd rrl I is hv,\v
meurioued v .sp.tudevl Svope ihat tu
equttahie i icat nieni, Aj,so, i by i rom
Ihu
j
/V
Ila,
V’
10,1.,
I
treativsapplied is Lutis attd ()u’kiu Otar
‘‘
V
i
iS
I’n/I Iiott
rio
anå Sec lirity
protes tto i aud xxiii iii aud to asxotd fair aud cqtmahle iteatmeut as two separate
itittd a ds
I 1t s lose tcLit iship hstsscen ihe cxi ‘udcd itaudatcl of full protet.tion aud
ss’s ut ti a ttd ht. oltitgatiott to at. s otd la i 1 kl equttable i reatmeni is pointed
(titt a Ro i ti i ht. I iI 6 i In la y ass ard, i hat lii ds t hat only exceptionally will the
standatd ix is latt. d to a hroads’r attihit than tht. phvsical set.urit as ihe afore
metitiotis d ( idi part tal ass atd had postuLits d aud, in sush ase, there would be
89 ‘Ihe award
ss’i i
st. slattoti to t he latt aud squiu ble treatmeut obligation.
alL i itis’d i li is in pent. tal teruss aud did not seem to attach particuhir import
ant.c x ihs d flerettse in ssoidiiig hetweeu ihe treaty applied in the C/vl[ award
(ss hen. I til g 0k st mii aud se ur iii is i spes i Rat ton of fai r aud equitable treat
ment) a tid i Le ti eats appltsabk t ti i be I’I’ 6 case (whers the two standards are
sepatats obhpations).
it
,
5
I
a
i
I
fl!
6
il
i
ti fl
th thi
s
i ,tt t
,‘
s’ni t Psl In i md
6 I’)
6 tid OS 4$)
i
oiis’t,tm,
i
bt.
/
/‘i ,tlsj’,s tt,
i’
pi
s’qsttt,thIs
in armeni.
o in tite
6
I lit. uitits dii to dtst ttiguisht ix lweeu mc two staudards is evidern a
ahxads tnent toned ass ard iti is nu ut i Aii’,ir,na ihat, also based on the word
ing ol i ti u s xpl is 1tI appites i be ila uda i d of proteetion to the legal secur
iii i at us r iL in to i be ilis sisal ses ut iti of ihe tnvestment, Renegotiat ion of the
t,ontl at. Is loi titt. soL put pose ol tedusiug ihe prise aud without any declaratxn of puitits t utets st, delaied ga> ment wi hout auy basis on the contract or
titt. applis aLle is piilattott. ot dstiiai of ass ess to administrative files for fihing an
appeal all tix se lot mi ol behaviour att.’ deeiued to violate both the standard of
fair aud s qu table tit. atmeut aud ihat ol full g otection aud securityY° ‘The treaty,
hovves st pto idt. i lot la ti aud equitahle trent ment aud full protection aud legal
es urtii is tss x patats’ taudamds; ihe ti thttt ni faiis to elaborate on the distinc
tioi iii ihis licat lx tiiss’tI tlie two standatds,
\lso, ihs’ ( SOl1 asvaid utade nefeteuse to I. ii aud equitable tieatment and full
gi i ites i ton ti d ses ut it i ogs’t lxi d
t in spilt.’ of t be appi icable treaty ihat provides
lot tiso spat ut. obhigatmous.
I Rcpublic lailed to distitsguish ilie
litt. pat ti il ass itd issmts’t.i in ( ‘mil i (
timli piotss ti in aud ss’sutiti lioni otlxi staitdirds, aud saw tbe same astiotis and
in is tions titt sted to t enios e tIme iss tinn aud Iegal protest ion of the investment as
9 discrim’
i basis lot ths slatin lot expropi
lam aud equitahle treatrnent,
i natt. ni ms’as ut. i
aud lithl plots’s i mon aud ses itntty’
t5 ‘lite overlap between the
st, nsl,ii si’, i gossihhs s’xplaiuesl in viess of titt.’ applisabie Bl’l’ that considers the
bl i ‘at toti to stisuts’ Itmll gi oles i mon aud 5sst ty ,ts a specification of the standard
latt aud s’ 1
itti,ibls tts’atms’nt
i
t i
i
la. App/zcaiio;i in vond Phyzcal Safety
i 49
‘ihe Vivendi vArgenrina llaward, finally, suhoidiuated tbe siaudaid ol liii! gro
tection and security to tbe prinsipie off iii and equmtabie tieatmeut. lhe standard
is said to apply to auy ast on measitre ss hit. li depnis ss an iusestor’s i nye Imt. in
of protection aud sesunity, provided mi son.slitittes also uulaii aud mmit.t.i uiablc
96 ‘Ihis is exphisitly hast.d on ute spesilis siotding of thse ticaty, whit.b
ireatment.
suhjec in the obligation to gi ovide full protes t mon aud set. ut iii to titt. gitt s ipit. ol
Idir and equitabie treatinent. Aften haviug aisesset.I tIiis iutenielatiouship [ss tsses’n
the two standards, the assard ignoted the standard ol full ptoteslion aud st.’surtty
aud nteasured the State’s hehaviour i. xc lusis el> agamnst i be gi ineipls’ ol fai i aud
equitabie treatment.
’
9
‘Ihe ovenlap of tbe i wo standards, in 50115 lusmon, fiuds a justifit. attoti in lite
wording of tbe i reaty ouly in ille (All’ aud in titt. i ene nde lI san. I lit. otbsn
awards have simply disregarded that ute respesi Re i teaties listed lIte mo stand—
ardi ni two separate obligatton i and hast. ti e,iied i bent as et.iuivaient,”
As already seen, soine awards openly alhrm i hat, il tite t titt. iple ol Liii aud
equitable treatment bas heen violated, ubers’ is uo ued to t. stablisb in at.it.iimton
a violation of tIte provision on full gi miles tion aud ses unimy. (‘Itbei ,mn ands do not
state this expressiy but nei de ,frc’ro in assordause witb this appioat. It, i atlmug a
spectfic elaboration mitt what exat. ml> diii mnpuisbes omie stattdatd ftoum lite otbsn
rnakes tbe standard offuli protestion aiit.I secui ity tedutidaut, as it is imot imistbie
to identify whish asnons or ontissioims uta> sonslitutt. violatmoii i ltene I on ,in
indepetident basis.
i
ih
i
is)
,t i
i il
Aiion en combai
Anorher situation whcre oscaslonally awatds base sboss n tmnsc’nt,tint in lite
choice of wbich treaty’ provision to apply, is when ube pbysisal damtiags to the
investor is dnc to armited action. In tbess sast.’s, ihert.’ may be a hnl, to thc pios i
sions that thc treaties rnay contain on damages dutc to at. iion in t.ombau.
‘lhuis, the majority in AM I’n /a,re’ afhrntt.’d that tlte hahihts ol Ris ,Si,us bad
a basis eirher in the provision ot full protestlon aud st.’sittmt’, ot in titt. pitvision
on not amid comhat, or in hothd
9 Ihese aiiei uatist.’ bases sin rs snttmsmlesl ni ute
separare opinion by Arbit rator (dolsong, w bo considt.’tesl litt. i os ision on not
and combat as a /ex ipecea/ea ilmau ni susb ahsorhs ibe tuic on I ull giots st mon aud
ses unmuy.
na
i I
le’ U
Z i ‘lit,! ,ttl,td, dhti’,! n 8
1
Ihid.. pamas. 7 +18
i, +6 aiisl
,‘i
trt i, i iii ti
AIso I’N( I AD, mhts mi. I V i , l t sit iii
I 6
ti
I
ttitds r rhc sann hs adi ng ,ts i hi’ ta il mr ml mcli il il,) li i
i i
I) I’ pi I titt
I
tI
tim &
i
i i
ti s t t i i
tHUlam Ss!tps ni ths siattdatd in isl,tuttr ta pit
I pis i
,ttn t I
distuih,tnsc’ but 1111(1555 ,tko lhi’(insit,i i i li
i i sI i
i i
ihid., nu, +0 i’! q. 11w papt i I mils ittsl thor t st i hr I. i Oil 1111) hs is”c iii lis in) I mii i
,titd sslutiihlt iisairic iii
ihoss n Is p im i li
Dii
i’s’ titt,
,mnsl rItt
i If I
sssnttrv