IBM World Trade Corporation v. Republic of Ecuador

Abstract

Jurisdiction — Whether a void contract would bar the exercise of ICSID jurisdiction — Matter to be dealt with in the merits — Prima facie existence of the contract — Contract characterizing an investment — Certificate constituting an investment

Jurisdiction — Consent to arbitrate — Entering into a BIT by State as consent to arbitrate — No need for additional consent by State — ICSID Convention, Article 36(2)

Jurisdiction — IBM’s acquisition of shares in IBM Ecuador — Whether constituting investment by IBM in Ecuador — Default in contract indirectly affecting IBM — Whether investment protected by United States–Ecuador BIT, Article I(1) — ICSID Convention, Article 25

Jurisdiction — Exclusive jurisdiction clause under investment contract — Interpretation of terms of BIT — Fork-in-the-road provision — BIT as the fundamental basis of the claim — Domestic courts retaining jurisdiction over investment-unrelated matters

Municipal law — Illegality of the contract under municipal law — Not posing a bar to ICSID jurisdiction — Arbitrability — Primacy of international law

Municipal law — Prescription of rights under domestic law — Matter to be dealt with in the merits — Claims founded on the BIT rather than on contract

Jurisdiction — Consent to arbitrate — Exhaustion of local administrative and judicial remedies — Interpretation of terms of the BIT — BIT, Article VI — ICSID Convention, Article 26