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The Public—Private Distinction in the International Arbitration of Individual Claims against the State

Published online by Cambridge University Press:  17 January 2008

Abstract

Does the rise of international arbitration signify a retreat of the State from classical adjudication? In examining this question, it is important to distinguish contract-based arbitration of individual claims against the State from arbitration pursuant to investment treaties. The former is broadly limited to the private sphere of the State's activity, whereas the latter gives arbitrators a comprehensive jurisdiction over public law. An elaboration of this distinction, and the grey area within it, demonstrates that the significance of international arbitration for juridical sovereignty is its privatization of the authority to define the very concept of the public sphere.

Type
Shorter Articles, Comments, and Notes
Copyright
Copyright © British Institute of International and Comparative Law 2007

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77 ibid para 119.

78 ibid para 168. The tribunal also found that a broad reading would make superfluous the other substantive obligations of the States Parties, that the language of the umbrella clause did not expressly refer to ‘contractual’ commitments, and that the location of the umbrella clause in the treaty text indicated that it was not meant to be a substantive obligation: paras 168–9.

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