Download this Paper Open PDF in Browser

The Compliance with the Law Requirement in International Investment Law

29 Pages Posted: 30 Sep 2010 Last revised: 25 Oct 2011

Rahim Moloo

Gibson, Dunn & Crutcher LLP

Alex Khachaturian

White & Case LLP - Washington, D.C. Office

Date Written: September 27, 2010

Abstract

Investment treaties often require that an investment be made in accordance with the law of the host-State in order to receive protection under the treaty. As such, a tribunal hearing claims under such an investment treaty does not have jurisdiction over claims relating to illegally made investments. Even where no such requirement is present, there is an emerging trend, though inconsistently applied, that requires investments to comply with both host-State and international law in order for claims based on those investments to be admissible. Drawing on international case law and general principles of law this article discusses when an investment’s non-compliance with the law should act as a barrier to the investor’s ability to pursue its claims under an investment treaty.

Keywords: investment treaties, bilateral investment treaty, international dispute resolution, international arbitration, international economic law, BIT, international law, NAFTA, accordance with the law, clean hands

JEL Classification: K33

Suggested Citation

Moloo, Rahim and Khachaturian, Alex, The Compliance with the Law Requirement in International Investment Law (September 27, 2010). Fordham International Law Journal, Vol. 34, p. 1473, 2011. Available at SSRN: https://ssrn.com/abstract=1683523

Rahim Moloo (Contact Author)

Gibson, Dunn & Crutcher LLP ( email )

200 Park Avenue, 47th Floor
New York, NY 10166-0193
United States

Alex Khachaturian

White & Case LLP - Washington, D.C. Office ( email )

601 Thirteenth Street, NW
Suite 600 South
Washington, DC 20005-3807
United States

Paper statistics

Downloads
621
Rank
34,417
Abstract Views
2,857