Fireman's Fund Insurance Company v. United Mexican States

Abstract

Foreign investment — NAFTA, Chapter 14 — Financial services — Relationship between Chapter 11 and Chapter 14 of NAFTA

State responsibility — Attribution — Nature of body established for company's financial restructuring — Whether informal recommendations of working group could be attributed to host State — Whether investor justified in relying on informal recommendations of working group

Measures — Exceptions to NAFTA obligations — NAFTA, Article 1410 — What constitutes “reasonable measures for prudential reasons” — Whether measures with discriminatory effect permitted — Whether Article 1410 a self-judging provision

Expropriation — Determination of meaning of expropriation — NAFTA, Article 1131(1) — Tribunal to rely on NAFTA and international law — Whether tribunal permitted to rely on international case law

Expropriation — Loss of investment due to risk not expropriation — Bilateral investment treaties not insurance against investment risk — Discriminatory treatment not tantamount to expropriation — Whether host State's failure to conclude agreement constitutes expropriation

Costs — Apportionment of costs — Respectable claims on the merits to be considered in apportionment of costs