Metalclad Corporation v. United Mexican States

Abstract

Arbitration — North American Free Trade Agreement, Chapter 11 — Procedure — ICSID arbitration — Additional Facility Rules — Amendment of claim — Requirement that amendment must be within the scope of the arbitration agreement and sufficiently timely — Due process — Discovery — North American Free Trade Agreement

Damages — Expropriation of property — Restitutio in integrum — Fair market value — Calculation — Loss of profits — Discounted cash flow analysis — Whether appropriate in case where project never operational — Alternative methods of calculation

Economics, trade and finance — Investment protection — Fair and equitable treatment of investment — North American Free Trade Agreement, Article 1105 — Requirement of transparency — Federal State — Federal authorities required to remove uncertainties created for foreign investment by provincial and local authorities

Expropriation — Definition — North American Free Trade Agreement, Article 1110 — Conduct tantamount to expropriation — Distinction between expropriation and regulation — Indirect expropriation — Work on project halted after long period

State responsibility — Federal States — Responsibility for acts of State and local government — International Law Commission Draft Articles on State Responsibility