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This chapter delves into the question of the impact of extraterritorial and secondary sanctions on private contractual relations. It opens with a discussion of the characterisation of extraterritorial and secondary sanctions as potential legal or factual impediments to the performance of contractual obligations. A detailed analysis of the case law follows, bringing to the fore some degree of reluctance on the part of judicial authorities to allow operators to suspend the performance of their contractual obligations or to terminate contractual relations on account of their exposure to extraterritorial or secondary sanctions, at least in the absence of sanctions or force majeure contractual clauses. The chapter also explores the potential tension between such sanctions, on the one hand, and measures – commonly referred to as blocking statutes – enacted by states or by the EU to thwart their effects, on the other hand. A discussion, in this respect, of the relevant case law reveals a quest for a balance between policy objectives and economic soundness and shows the existence of incongruent views on the compatibility of sanctions clauses with blocking statutes.
To litigate or not to litigate, that is the question any Chinese companies operating in the United States long enough must contemplate. For American companies, litigation is nothing but an unavoidable business risk and often a vital competition strategy, routinely dealt with by legal and managerial professionals applying monetarized cost–benefit analysis. Such analysis typically incorporates attorney fees and other litigation expenses, potential reputational damage, time and human resource consumption, and the present value of expected litigation gains or losses. By contrast, litigation in China carries complex social meanings and is often avoided to preserve long-term cooperative relationships or to signal desirable attributes to uninformed third parties. When lawsuits do occur, they are often handled by stakeholders without professional legal assistance. Disputants consider a wide range of material and nonmaterial interests that are shaped by both formal institutions undergoing significant transformation and complex, entrenched social norms governing dispute resolution. Chinese companies immersed in these two disparate institutional environments approach legal disputes in the United States.
Chapter 4 surveys a wide range of friendly and hostile interstate relations in ancient societies, where war was often the normal state of affairs. Notwithstanding the numerous conflicts, polities tried in the end, through alliances and diplomatic relations, to establish peaceful relations in view of political stability and economic prosperity. The chapter analyses hospitality rules regarding foreigners, treaties between polities and the establishment of diplomatic relations, which emerged as an international system in the ancient Near East during the mid-fourteenth century bce. An alternative to diplomacy in conflict management, typical of the Greek world, was arbitration and mediation with the help of a third party. In a final section, the chapter outlines how states, when diplomacy failed, started a war procedurally. In conclusion, the chapter argues that, in the absence of an international court, the enforcement of diplomatic rules and treaties was in many ancient societies ensured by the supranational authority of the gods.
Although civil trials provide for the lawful resolution of many kinds of disputes, the vast majority of civil matters are resolved through other processes: Negotiation, mediation, and arbitration. This chapter provides an overview of the main psychological and structural factors that influence disputants’ decisions to select and use these primary alternative dispute resolution (ADR) processes. Further, the chapter discusses the psychology of decision-making in the context of alternative dispute resolution, including identifying what constitutes successful outcomes and how biases and other tendencies can prevent parties from realizing these outcomes. Finally, the chapter addresses research on the ways in which non-parties such as mediators, facilitators, arbitrators, and judges can improve (or diminish) the likelihood that parties’ voices will be heard, that parties will be satisfied with the process, and that the selected process will result in substantively satisfactory outcomes. Major research gaps and policy implications are identified and discussed.
Does arbitration permit a self-sufficient contract? To what extent can relevance be disregarded without affecting the validity and enforceability of an award? What power does the arbitral tribunal have?
Contract practice andthe reasons for its standardised style. A discussion ofboilerplate clauses. A presentation of the theories of the relational contract and of the autonomous contract.
How did polities interact in the Archaic and Classical periods, and which norms influenced their behaviour? This chapter aims to answer these questions. By moving away from the dominant Realist interpretation of ancient history, and employing a variety of themes that played a role in neighbourly relations, a fresh and different understanding of neighbourly diplomatic interactions emerges. Four norms are investigated; first, the decision to go to war or avoid that possibility; second, friendship ties; third, reciprocity; and fourth, reputation. By analysing the reasoning behind the breakdown of neighbourly relations, it will become that clear political actors frequently sought ways to restore the status quo and peaceful co-existence. A second factor is the friendship ties between leaders and how this influenced the direction of the neighbours vis-à-vis one another. The third aspect is reciprocity, and how this formed a staple of neighbourly relations and could be called upon to reinforce neighbourly ties. Finally, the notions of reputation and trust are investigated to show that the reputation of a polis influenced neighbourly relations, whether positively or negatively. Earlier behaviour, such as abandoning an alliance, impacted decision-making and required significant efforts to restore the trust between the neighbours.
Arbitration — Jurisdiction — Admissibility — Treaties — North American Free Trade Agreement, 1994 — Treaty interpretation — Vienna Convention on the Law of Treaties, 1969 — Effet utile doctrine — Whether one treaty interpretation technique dominating others
Arbitration — Consent to arbitration — North American Free Trade Agreement, 1994 (“NAFTA”) — Pre-arbitration requirements under Article 1119 — Whether consent to arbitration conditioned upon fulfilment of Article 1119 requirements — Notice of intent — Purpose of notice of intent under Article 1119 of NAFTA — Whether defect in notice of intent vitiating consent under Article 1122 of NAFTA — Whether pre-arbitration procedural matters jurisdictional or admissibility issues — Standard and scope of review of tribunals’ decisions — International Commercial Arbitration Act 2017
Treaties — Interpretation — Vienna Convention on the Law of Treaties, 1969 — Article 31(3) — Legal submissions as subsequent practice — Whether NAFTA Parties’ legal submission constituting subsequent practice under Article 31(3)(b) of Vienna Convention — Definition of subsequent practice — Jurisdictional error
Relationship of international law and municipal law — Treaties — North American Free Trade Agreement, 1994 — Decisions of international courts and tribunals — Decisions of Ontario Court of Appeal — Whether binding — Review of international arbitration awards — International Commercial Arbitration Act 2017 — Whether international arbitration tribunals acting within their authority — The law of Canada
Arbitration — Jurisdiction — North American Free Trade Agreement — Article 1121 — Consequences of a failure to comply with Article 1121 — Whether particular formulation of words required to provide valid consent to arbitration — Whether failure to comply with requirements of Article 1121 denying Tribunal jurisdiction — Article 1119 — Article 1122 — Whether defect in notice of intent to submit claim to arbitration under Article 1119 and 1122 denying Tribunal jurisdiction — Whether defect in notice of intent to submit a claim to arbitration a curable issue of admissibility
Arbitration — Procedure — North American Free Trade Agreement — Chapter 11 — Procedure for submitting a claim to arbitration — Procedure for valid notice of intent to submit a claim to arbitration — Defects in notice — Consequence of defect in notice — Efficient administration of justice — Prejudice to respondent
Economics, trade and finance — Foreign investment — North American Free Trade Agreement — Article 1117 — Meaning of ownership or control of an enterprise — Full or virtually full ownership — Shareholding required to demonstrate full or virtually full ownership of an enterprise — Control of an enterprise — De facto control — Collective shareholding and alignment of votes
Treaties — Interpretation — North American Free Trade Agreement (“NAFTA”) — Article 1119 — Article 1122 — Vienna Convention on the Law of Treaties, 1969 — Article 31 — Failure to comply with requirements of Article 1119 — Whether failure to comply with requirements of Article 1119 vitiating other Party’s consent to arbitration under Article 1122 — Context of Chapter 11 NAFTA — Object and purpose of NAFTA
In this chapter, Sir Michael Wood examines the future of the international dispute settlement system. The core claim of this chapter is that continuity is, and will continue to be, this system’s defining feature. It observes that the fundamentals of inter-State disputes have changed little since 1920. Most notably, consent to third-party dispute settlement remains at the heart of the system, as does a widespread reluctance by sovereign States to give that consent in advance of disputes arising. The Optional Clause, for example, remains unchanged after 100 years, as does States’ unwillingness to accept it or to do so without extensive reservations. That said, and reflecting on the chapters contained in this collection, this chapter accepts that there have been new and important developments in the international dispute settlement system in recent years and, providing their promise is realised, they will perform a critical function in maintaining international peace and security.
In this chapter, Eric De Brabandere zeroes in on the settlement of disputes in the context of investment arbitration. This chapter accepts that the case law of the current investor-State dispute settlement system is inconsistent and unpredictable and requires reform. However, this chapter claims that the problems associated with the dispute settlement system for investment arbitration cannot be isolated from broader questions on the coherence of general international law, the determinacy of legal norms, and the role of arbitral tribunals in the interpretation of these norms. The chapter argues that coherence is a matter of degrees and that a ‘middle ground’ might be to consider that international investment law forms part of international law, which is a coherent legal system from the perspective of the sources or the secondary norms of international law. Consistency, on the other hand, is not completely achievable in the current investment landscape, given its lack of uniformity in terms of substantive law and ad hoc method of dispute settlement. Consistency must be sought through different options, such as redrafting investment treaties to ensure better balance and predictability of outcomes.
The author attempts to unravel the close conceptual and practical connection between consent and autonomy. The chapter argues that consent is the vehicle of autonomy, vehicle through which States give themselves their own rules, both primary rules and secondary rules. Because the exercise of autonomy in the international society faces contextual limits, linked to the self (auto) and to the law (nomos), it is claimed, that consent appears not only to be characterized by power, but also by limitations. This holds true for consent in international law-making as much as for consent in international dispute settlement. The chapter focuses on both categories, discussing the theory of sources and institutional law-making with respect to the former and jurisdictional matters and applicable law with respect to the latter. It concludes – prospectively – with some thoughts on the future of autonomy and consent in international legal theory and practice
Chapter 9 finally turns to the results of litigation in the courts of royal justice. Analysing the well-preserved books of orders and decrees made by the Court of Requests, this chapter asks how far this tribunal’s determinations met the expectations of petitioners, acknowledged the arguments of defendants, and subscribed to existing legal norms. It first surveys the changing circles of men who passed judgment in Requests, and considers the extent of their legal and judicial expertise. It then sets out the general formula of decrees recorded in this period, and what they can reveal about the processes of decision-making in this Court, the evidence it examined, and the awards within its gift. Finally, the chapter turns to the longer-term significance of rulings made within this burgeoning jurisdiction: assessing the signs of increasing caution about the scope of Requests’ powers, on the one hand, and the future utility of written royal decrees once they were in the hands of winning parties, on the other. In all, this chapter demonstrates that making the extraordinary powers of the Crown more ordinary meant balancing litigants’ demands with practical limitations.
Chapter 5 turns from the demography of the Court of Requests to the issues that its plaintiffs presented. It begins with a breakdown of the subject matter of petitions, including violent assaults, debt and goods disputes, and quarrels over the possession of land. Thereafter, the chapter abandons firm legal categorisations used in other single-court studies, observing that supplicants to the king more often framed their cases in terms of emotions, relationships, and social values – of personal status and a wider social order that they perceived to be at risk. Finally, the chapter examines claims made by Requests’ petitioners about their inability to find justice elsewhere, in other parts of the legal system. This serves to trace the various possible steps between the onset of a localised feud and the pursuit of litigation before the king, and therefore to better contextualise the Court of Requests and the conciliar justice network. It also demonstrates how subjects and supplicants perceived this new jurisdiction: not as a forum for trying particular areas of case law but as a mechanism for remedying tangled feuds that could not be so simply defined nor easily remedied elsewhere.
Any practising lawyer and student working with international commercial contracts faces standardised contracts and international arbitration as mechanisms for dispute settlement. Transnational rules may be applicable, but national law is still important. Based on extensive practical experience, this book analyses international contract practice and its interaction with various applicable sources. It considers vital questions concerning the role played by contractual regulation, by national law and by transnational sources. What is the interaction among these factors, and how does this all apply to contracts that refer disputes to international arbitration? This revised second edition has been fully updated to reflect developments in the field and includes useful tools like tables of cases and sources, and a list of electronic resources and databases.
This chapter discusses how international courts operate, and how their jurisdiction is dependent on consent of states. It goes systematically through notions of jurisdiction, admissibility, interim measures, and compensation, ending with a discussion of advisory opinions and the possibilities for judicial review
Following a three-year post-termination transition period to bring investor-state arbitration disputes, the investment protections afforded by Chapter 11 of the North American Free Trade Agreement (NAFTA) finally expired in June 2023. Chapter 11 was one of the most litigated, cited, commented, and copied investment treaties. An important, but largely ignored, part of its legacy is how the making of NAFTA Chapter 11 shaped its subsequent successful diffusion. Combining traditional legal assessment with computational text-as-data analysis, this article shows how the give and take during the negotiations generated buy-in on the part of Mexico and Canada and emulation by Latin American countries who helped to spread NAFTA Chapter 11 language globally. The link between the making and diffusion of NAFTA Chapter 11 highlights the power of negotiated compromise: sharing the pen with others may sometimes be the most effective way to write the rules that come to shape the world.
This chapter reviews the enforcement of IHL through a range of legal and non legal mechanisms. It first addresses the obligation to respect and ensure respect for IHL, protecting powers, the international humanitarian fact finding committee and the role of human rights bodies. State responsibility, state immunity and acts of state and political question doctrines are then discussed. Reparations, including state reparations, individual reparations and reparations by armed groups are then reviewed. UN immunity, UN enforcement and responsibility in peacekeeping operations, liability and reparations in peacekeeping operations and criminal responsibility in peacekeeping operations are also addressed. The use of belligerent reprisals in the enforcement of IHL and armed groups and enforcement of IHL is then discussed. In conclusion the chapter considers United Nations Action in enforcement of IHL.