Texaco Overseas Petroleum Company and California Asiatic Oil Company v. The Government of the Libyan Arab Republic

Abstract

International law in general — Relation to municipal law — Principles of — Inclusion in municipal law — Principles as to restitutio in integrum — Application by arbitral tribunal

States as international persons — In general — Sovereignty and independence — In matters of domestic jurisdiction — International commitments with private party — Concessionary contracts — Right to nationalize — Whether a mandatory rule of general international law (jus cogens)

State responsibility — Nature and kinds of — For revocation of contracts — State bound by acts of its organs — Act of Minister — Conclusion by Minister of Deeds of Concession — State bound thereby

International organizations — United Nations — General Assembly — Resolutions of — As reflecting or affecting customary international law — Nature of resolution — Character of voting thereon — Permanent Sovereignty over Natural Resources — Charter of Economic Rights and Duties

Disputes — Arbitration — In general — Conception and function of — Contractual nature of — Effect of nationalization measures on arbitration provisions in Deeds of Concession — Autonomy or independence of arbitration clause — Need for compliance by parties with pre-requisites — Attempts to bring about friendly settlement

Disputes — Arbitration — Conception and function of arbitration — Restriction to matters of principle to exclusion of question of enforcement

Disputes — Arbitration — In general — Law applied by Arbitral Tribunals — Absence of agreement as to choice of law — Determination by Arbitral Tribunal as to law or systems of law applicable — Choice between municipal law and international law — Relevance of intention of parties — Relevance of provision that arbitrator be appointed by President of International Court of Justice — Relevance of exclusion of municipal law in provisions in Deeds of Concession as to Rules of Procedure

Disputes — Arbitration — Arbitration Treaty — Appointment of Arbitrator — Failure of one party to appoint arbitrator — Appointment by President of International Court of Justice

Disputes — Arbitration — In general — Appointment of arbitrator — Failure to appoint arbitrator — Rejection of request for arbitration — Appointment of arbitrator by President of International Court of Justice — Failure of defendant to take part in proceedings — Effect on rights of plaintiff

Disputes — Arbitration — Procedure — Waiver of oral argument — Arbitration governed by Rules of Procedure to exclusion of local law — Rules of 1962 prepared by Bureau of Permanent Court of Arbitration — Draft Convention on Arbitral Procedure adopted 1955 by U.N. International Law Commission

Disputes — Arbitration — Procedure — Waiver of oral arguments — Possibility of withdrawing dispute — Non — appearance of one party — Question as to identity of defendant — Attempt to distinguish between State and Minister by whom Deeds of Concession concluded

Disputes — Arbitration — Procedure — Competence to determine jurisdiction — Division of proceedings into two parts — Part devoted to question of jurisdiction — Arbitrator as judge of his own jurisdiction

Disputes — Arbitration — Procedure — Competence to determine jurisdiction — Question as to existence of dispute or difference — Divergence of interest and opposition of legal views constituting basis for litigation

Disputes — Arbitration — Procedure — Competence — Loss by plaintiffs of status as concession holders after nationalization — Whether affecting operation of arbitration clause

Disputes — Arbitration — The Award — Scope and binding force — Judgment by default — Plaintiff’s request for ruling by tribunal — Decision as to restitutio in integrum — Time limit therefor

State responsibility — Nature and kinds of — For revocation of, or interference with, concessionary contracts — Whether Deeds of Concession are contracts — Nature of concessions — Oil concession — Applicable law — Right of parties to choose law — Application of choice of law clause in contract — Binding nature of contracts derived from international law — “Internationalization” of contract between State and alien private person — Meaning and scope of nationalization of concessions — Whether or not nationalization measures breach obligations under contracts — Whether Deeds of Concession are “administrative contracts” — Whether nationalization terminates legal status of concession holders — Obligation to give full effect to Deeds of Concession after nationalization — Restitutio in integrum — Application of municipal law — Relevance of Muslim law