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3 - Recent developments in the approach to identifying an ‘investment’ pursuant to Article 25(1) of the ICSID Convention

from Part II - Shifts in fundamental character

Published online by Cambridge University Press:  05 December 2011

Chester Brown
Affiliation:
University of Sydney
Kate Miles
Affiliation:
University of Sydney
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Summary

Introduction

It is trite to say that:

The jurisdiction of the tribunal is fundamental to the authority and decision making of the arbitrators. Awards rendered without jurisdiction have no legitimacy. The absence of jurisdiction is one of the few recognized reasons for a court to set aside or refuse recognition and enforcement of an award.

The appealing possibility of a private investor litigating directly with a foreign State, the unique feature of the Convention for the Settlement of Investment Disputes between States and Nationals of other States (the ICSID Convention), was balanced by carefully defining the jurisdiction of the International Centre for Settlement of Investment Disputes (ICSID or the ‘Centre’). Article 25(1) of the ICSID Convention states that ‘the jurisdiction of the Centre shall extend to any legal dispute arising directly out of an investment’. The four requirements of subject matter jurisdiction, which were articulated in a similar form in Mihaly v. Sri Lanka, are, first, that there is a dispute; secondly that the dispute is of a legal nature; thirdly, that there is an investment; and finally, that the dispute arises directly out of that investment. This chapter focuses on the third requirement – that there is an ‘investment’.

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Publisher: Cambridge University Press
Print publication year: 2011

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References

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