Trends in International
Investment Arbitration
18 August 2014

James Claxton, Legal Counsel, ICSID

1	  Part I: ICSID

2	  The World Bank Group
ICSID

IBRD

IDA

IFC

MIGA

International Centre
for Settlement of
Investment
Disputes

International Bankfor Reconstructionand Development

InternationalDevelopment
AssociationInternational
Financial
Corporation

Multilateral
Investment
Guarantee Agency

MISSION:MISSION:MISSION:MISSION:MISSION:Ø Provides facilities
for conciliation andarbitration ofinternational
investment disputesØ Lends funds togovernments ofmiddle and lowincome countriesØ Provides interestfree loans andgrants togovernments ofpoorest countriesØ Provides loans,equity and technicalassistance tostimulate private
sector investment
in developing
countriesØ Guarantees forinvestors indeveloping
countries against
non-commercial
risk

3	  ICSID Convention

4	  ICSID Membership
150 Member States

5	  Part II: Case Trends

6	  ICSID Caseload60	  50	  2	  8	  40	  4	  1	  2	  1	  6	  2	  2	  40	  2	  8	  8	  8	  9	  1997	  1998	  1999	  2000	  24	  21	  20	  23	  1	  25	  13	  ICSID	  Conven9on	  Concilia9on	  Cases	  ICSID	  Addi9onal	  Facility	  Arbitra9on	  Cases	  ICSID	  Addi9onal	  Facility	  Concilia9on	  Cases	  2013	  2012	  2011	  2010	  2009	  2008	  2007	  to	  June	  30,	  2014	  ICSID	  Conven9on	  Arbitra9on	  Cases	  2006	  2005	  2004	  2003	  1995	  18	  2002	  1994	  21	  3	  2001	  3	  1996	  1	  2	  1993	  1991	  1990	  1989	  1988	  1	  2	  1992	  4	  1987	  1986	  1	  1985	  1983	  4	  1984	  1	  2	  1982	  1978	  2	  3	  14	  1	  1	  1981	  1977	  1980	  1	  1979	  1	  2	  1976	  1975	  1973	  1974	  4	  1	  1972	  1	  3	  2	  38	  33	  32	  30	  10	  1	  1	  1	  20	  0	  1	  1	  30	  2	  4	  7	  ICSID Cases by State Party Involved
North	  America	  (Canada,	  Mexico	  &	  U.S.)	  5%	  Central	  America	  &	  	  the	  Carribean	  6%	  Eastern	  Europe	  &	  	  Central	  Asia	  24%	  Western	  Europe	  3%	  South	  America	  27%	  Sub-­‐Saharan	  Africa	  16%	  South	  &	  East	  Asia	  &	  	  the	  Paciﬁc	  8%	  Middle	  East	  &	  North	  Africa	  11%	  8	  ICSID Cases by Sector
Agriculture,	  Fishing	  &	  Forestry	  4%	  Oil,	  Gas	  &	  Mining	  26%	  Informa9on	  &	  Communica9on	  6%	  Finance	  7%	  Services	  &	  	  Trade	  4%	  Electric	  Power	  &	  	  Other	  Energy	  13%	  Transporta9on	  10%	  Water,	  Sanita9on	  &	  	  Flood	  Protec9on	  6%	  Other	  Industry	  13%	  Tourism	  4%	  Construc9on	  7%	  *	  This	  sector	  classification	  is	  based	  on	  the	  World	  Bank’s	  sector	  codes,	  available	  at	  h\p://siteresources.worldbank.org/PROJECTS/Resources/SectorCodesLists.pdf

9	  Outcomes

Dispute	  decided	  by	  Tribunal	  65%	  Dispute	  se\led	  or	  proceeding	  otherwise	  discon9nued	  35%	  10	  Disputes decided by Tribunals
Award dismissing all claims
28%

Award declining jurisdiction
25%

Award deciding that the claims
are manifestly without legal
merit*
1%

Award upholding claims in partor in full46%

11	  Settlements or Discontinued
Proceedings
Proceeding discontinued at therequest of one party
27%

Settlement agreement embodied
in an award at parties' request
17%

Proceeding discontinued at theInitiative of the Tribunal
1%

Proceeding discontinued for lackof payment of the required
advances
8%

Proceeding discontinued at therequest of both parties
46%

Proceeding discontinued forfailure of parties to act
1%

12	  

Part III: Arbitrator Challenges

13	  Challenge Procedure14	  Number of Applications Filed
12

11

11
10

10

9
8

8

6

5
4

5
4

4

4

3
2

2

1

1

1

1998

1999

2
1

1

2002

2003

0
1982

…

2000

2001

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

to June16, 2014

Number of proposed disqualifications filed15	  Outcome of Proposals

Proposed disqualificationresulted in new composition ofTribunal
30%
Proposed disqualification did notchange composition of Tribunal
70%

16	  

Grounds for Disqualification
Article 57 of the ICSID Convention• Manifest lack of the qualities in Article 14(1)o High moral charactero Recognized competence in law,commerce…
o Reliability to exercise independent judgment• Nationality requirements not met17	  Procedure for Challenge
Arbitration Rule 9• A party must promptly file its proposal to disqualify
with the Secretary-General, stating its reasons• The Secretary-General(a) transmits the proposal to the members of theTribunal(b) notifies the other party of the proposal• The arbitrator to whom the proposal relates may,without delay, furnish explanations to the Tribunal orthe Chairman18	  Who Decides the Proposal for Disqualification?
Article 58 of the ICSID Convention• The other members of the Tribunal in the absence ofthe arbitrator concerned (Arbitration Rule 9(4))• The Chairman decides wheno Members are equally divided
o Proposal to disqualify a sole arbitratoro Proposal to disqualify majority of arbitrators

19	  Part IV: Transparency

20	  Relevant Provisions• ICSID Arbitration Rules 6(2), 15, 32(2), 37(2),48(4)• Administrative and Financial Regulations,22-23

21	  Transparency v. Confidentiality• Confidentiality is a traditional feature ofarbitration• No presumption of confidentiality in ICSID
proceedings22	  Rules Applicable to the Centre• Publish information on registration andtermination of cases (Administrative andFinancial Regulation 22)• Maintain registers with information on theinstitution, conduct and disposition of eachcase (Administrative and Financial Regulation
23)
23	  ICSID
1818 H Street, N.W.
Washington, D.C. 20433
USATel: (202) 458-1534
Fax:(202) 522-2615 or 522-2027
Website: www.worldbank.org/icsid24	  About the Presenter 	•James Claxton is Legal Counsel at the International Centrefor Settlement of Investment Disputes in Washington, DC.
Prior to joining ICSID, he practiced international arbitrationin Paris for six years with two international firms. Jamesregularly lectures at law schools on the topics ofinternational arbitration, international investment law, andICSID procedure. He is a graduate of the University ofColorado, Tulane University Law School, and the London
School of Economics and Political Science.	

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