State Entities in International Arbitration
Description:... States get involved in international affairs either directly or
through their instrumentalities. The activities of these
instrumentalities raise many issues, two of which have given rise to
significant recent developments both in arbitral and domestic case law.
The first is whether and under what conditions a State may be held
liable for the conduct of such instrumentalities on the basis of an
investment treaty. This issue will be the subject of a systematic surveyof ICSID and ICC case law and that of other arbitral tribunals so as toidentify the circumstances in which such liability may arise.
The second issue, which is addressed by State courts, is whether and
under what conditions State instrumentalities that have a separate and
autonomous legal personality may be held liable for the pecuniary
obligations of the State. A comparative law study focusing in particularon solutions found in French, English and U.S. law will provide answersto the question as to whether an award holding a State liable may be
enforced against the assets of instrumentalities of that State, where
such instrumentalities are prima facie separate juridical persons.
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