provisional measures in international investment arbitration

301 Pages·2014·2.26 MB·English

by  Federico Lenci

Scuola di dottorato in Scienze giuridiche
Curriculum di Diritto internazionale
Ciclo XXVII

PROVISIONAL MEASURES
IN INTERNATIONAL INVESTMENT ARBITRATION

Federico Lenci
Matricola R 09746

RELATORE: Chiar.mo Prof. Luigi Fumagalli
CORRELATORE: Chiar.ma Prof.ssa Roberta Clerici
COORDINATORE: Chiar.ma Prof.ssa Ilaria Viarengo

Anno accademico 2013 - 2014
Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

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Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

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Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

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Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

ACKNOWLEGMENTS

First of all, I wish to express my deepest gratitude to my mentor, Professor Luigi
Fumagalli, for his valuable guidance throughout these years of passion for International
Law. I also thank Professor Roberta Clerici for supervising the development of my
thesis with care and kindness.
I had the great chance to spend a semester at Sciences Po Law School in Paris, in the
quality of visiting Ph.D. Candidate during the second year of my doctorate; on that
occasion, I could improve substantially the results of my research and for this privilege I
am grateful in particular to Professor Emmanuel Gaillard, Professor Horatia Muir Watt,
Professor Diego Fernández Arroyo, Professor Mikhaïl Xifaras and – last, but not least,
in this group – the Dean of the Law Faculty, Professor Christophe Jamin, for their
insightful comments on different parts of my thesis and for their encouragement.
Undoubtedly, I also feel indebted to all my friends and colleagues at the State
University of Milan and at Sciences Po for their support and contribution, with various
degrees, to my endeavours.
The Law libraries of these Universities, as well as the Peace Palace Library in The
Hague and the Studies and Documentation Centre “G. Schiavoni” at the Milan Chamber
of Arbitration, proved to be high-quality working venues, especially in their
complementarity: in this regard, I also wish to record my thanks to Ms. Bisacchi, Mr.
van Tol, Ms. Alihusain and Ms. Lovato for their kind assistance.
I thank my parents for their love and that subtle sense of confusion when I told them
that – after my graduate studies – I would study much more than I had ever done in my
life, instead of finding “a real job”: their feelings indirectly encouraged me to do my
best.
Finally, special thanks are due to a person, who over the years gave me tremendous
support; without her, I would not have achieved this result: therefore, the present thesis
is dedicated to you, Yasmine. Merci.

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Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

TABLE OF CONTENTS

REFERENCES…………………………………………..……………………..…..……...11
INTRODUCTION…………………………………………………...……………..……...27

CHAPTER ONE
STATE SOVEREIGNTY AND THE RULE OF LAW
IN THE INVESTMENT REGIME

A. General framework…………………………………………………………..................31
I. Terminological Premises…………………………………………….................31
II. Overview........................…………………………………………….................33
III. Scope of the Present Study…………………………………………….............35
B. Relevance of Provisional Measures
in International Investment Arbitration……...……….....................................………..39
I. The International Economic Environment……………………………………..39
II. Asymmetries in Investment Arbitration………………………………….........42
III. Balancing State Sovereignty and Investor’s Rights.……………………..........44
C. Towards a Common Procedural Lexicon……………………………………..............48
I. Concerns about the Fragmentary Structure of the Matter at Issue...................48
II. The Role of Arbitral Tribunals …………………………………..……...........49
III. Some Provisionally Open Problems……………………………………..........51

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Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

CHAPTER TWO
THE TWO-FOLD LEGAL PERSPECTIVE CONCERNING
PROVISIONAL MEASURES IN THE INTERNATIONAL LEGAL
ORDER

A. Introduction to the structure of the chapter……………………………………..……...53
I. Cross-fertilization.……………………………………………...........................53
II. Consolidation of arbitral jurisprudence..…………………………….….……...57
III. The doctrine of precedent in international investment arbitration as soft
stare decisis principle………………………………………………….……….57
B. Differentiated approach on the sources from an historical and comparative
perspective………………………………………………………………………...........65
I. History of provisional measures in public international adjudication: from
XIX-century inter-State arbitral tribunals to the day before the creation
of the International court of justice………………………………………..........65
i. International arbitration. Réglement pour la procédure arbitrale
international de l’Institut de Droit international (1877).………....……….67
ii. Convention for the pacific settlement of international disputes – PCA
(1899).…………………………………………………………….…..........68
iii. Corinto peace treaty (1902).……………………………………….………70
iv. International prize court (1907)..………………………………….……….72
v. Central american court of justice (1907)………………………….……….77
vi. Bryan treaties (1914-1917).……………………………………….……….82
vii. Mixed arbitral tribunals established by the Treaty of Versailles
(1919)……………………………………………..……...…….…………..85
viii. Permanent court of international justice (1920).………………….……….91
ix. Washington convention (1923).………………………………………….119
x. Santiago treaty (1923).…………………………………………………...120
xi. Geneva protocol (1924).………………………………………………….121
xii. Locarno treaty (1924).……………………………………………………121
xiii. General Act of Arbitration (1928).……………………………………….122

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Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

II. Comparative analysis of the sources concerning provisional measures in
contemporary public international law...……………………………………...123
1)
i. Multilateral treaties…………….…………………………………………124
a) Statute and Rules of Court of the International court of justice............124
b) United Nations convention on the law of the sea.……………….........140
c) ICSID Convention and Arbitration rules………..…………………….146
d) ICSID Additional Facility rules…………………...……………..........149
e) NAFTA Chapter 11…………………………..…………………..........151
f) CAFTA Chapter 10…………………………………..…………..........153
ii. Sectoral treaties……………………………….……………………..........154
iii. Bilateral investment treaties…..…………………………………….........154
iv. Model bilateral investment treaties……...…………………………..........156
v. Treatification and contractualisation concerning provisional
measures……………………………………………....…………….........158
2)
vi. Institutional arbitration………………………..…………………….........159
a) ICC arbitration rules…………………………….……………….........162
b) LCIA arbitration rules………………………………..…………..........165
c) Stockholm International Chamber of Commerce rules………….........168
vii. Ad hoc arbitration rules: the UNCITRAL arbitration rules……..…..........169

CHAPTER THREE
THE CURRENT STATE OF PROVISIONAL MEASURES
IN INTERNATIONAL INVESTMENT ARBITRATION

Introduction………………………………………………………………………............173

Section one: specific features of provisional measures
in international investment arbitration…………...............................................................182

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Provisional Measures in International Investment Arbitration
Ph.D. Thesis – Federico Lenci

A. Differences between ICSID and other investment arbitration fora: focus on the
binding force of provisional measures………………………………………………..182
I. ICSID arbitration……..…………………………………………………………182
II. Other investment arbitration fora…………………………………….................191
B. Comparing ICSID with UNCITRAL investment arbitration: exclusive v.
concurring jurisdiction between State court and arbitral tribunal …….……………..195
I. ICSID arbitration………………………………………………………………..195
II. Investment arbitration under the UNCITRAL Rules………………….………..200

Section two: general features of provisional measures
in international investment arbitration………………………………………..………….203
A. Conditions……………………………………………………………………………..203
I. Introduction……………………………………………………………………..203
II. Prima facie jurisdiction / Fumus bonae iurisdictionis……………...……..........204
III. Urgency…………………………………………………………………..........209
IV. Necessity……………………………………………..………………………..211
V. Prima facie bonum ius / fumus boni iuris…………...…………………….........213
VI. Link between the provisional measures requested
and the rights in dispute………..……………………………………….……..214
VII. Proportionality.…………………………………….………………………….215
B. Purposes………………………...……………………………………………………..217
I. Introduction……………………………………………………………………..217
II. Preserving the parties’ rights…………………..………………………………..219
III. Securing discovery of evidence………………………………………….........222
IV. Preventing self-help……………………………………………..……….........225
V. Safeguarding the enforcement of the award ……..…………………………….227
C. Atypicalness…………………………………………………………….…………….229
I. Introduction……………………………………………………………………..229
II. Measures for the protection of the tribunal’s jurisdiction…………..…………..230
III. Measures aimed at preventing aggravation
or exacerbation of the dispute…………………………………………...…….232
IV. Preservation of evidence……………..………………………………………..235

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Provisional Measures in International Investment Arbitration
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V. Security for costs………………………………………………………………..236

Section three: looking beyond the current status. Treatification
and contractualisation of provisional measures in international investment arbitration…244

CHAPTER FOUR
THE IMPLEMENTATION OF PROVISIONAL MEASURES
IN INTERNATIONAL INVESTMENT ARBITRATION

Introduction to the problem………………………………………………………..……..247

Section one: normative framework…………………………………...………………….251
A. ICSID Convention and Arbitration Rules…………………………………………….251
B. UNCITRAL Arbitration Rules and the Model Law……………………...….……….257

Section two: scenarios in the course of arbitration proceedings
and relevant practice………………………..…..………………………………………..262
A. Compliance…………………………………...………...……………………….........262
B. Non-compliance and its legal consequences…………………………………….........267
C. Possibility for the addressee to oppose tribunal-ordered provisional
measures…………………………………………………………...………………….269

CONCLUSION: THE ROLE OF CONSENT……………………..……………..……...275
BIBLIOGRAPHY……………………………………...……………...….……..….........281

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