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Practising VirtueInside International Arbitration$
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David D. Caron, Stephan W. Schill, Abby Cohen Smutny, and Epaminontas E. Triantafilou

Print publication date: 2015

Print ISBN-13: 9780198739807

Published to Oxford Scholarship Online: January 2016

DOI: 10.1093/acprof:oso/9780198739807.001.0001

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Local Remedies in International Treaties

Local Remedies in International Treaties

A Stocktaking

(p.280) 16 Local Remedies in International Treaties
Practising Virtue

Rudolf Dolzer

Oxford University Press

This chapter determines the role of local law in investment treaty arbitrations. It addresses four distinct issues: the exclusion of diplomatic protection under the International Centre for Settlement of Investment Disputes (ICSID) Convention; the requirement to follow the traditional rule on the exhaustion of local remedies; the rule that ordinary commercial matters do not fall under the jurisdiction of ICSID; and the relevance of the rules of denial of justice. It shows that although ICSID tribunals rightly eschew diplomatic protection, some of them erroneously have introduced requirements to resort to, and even exhaust, local remedies when neither is required under the ICSID Convention or the relevant investment treaty. International tribunals should therefore not shy away from reinforcing their editority in relation to local courts.

Keywords:   investment treaty arbitrations, diplomatic protection, international arbitration, local remedies, national law, remedies, ICSID

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