Soverign Immunity From Legal and Arbitral Proceedings and Execution Against the Assets of a Soverign State: The Evolving Paradigm Shift
30 Pages Posted: 2 Feb 2021
Date Written: November 21, 2020
Sovereign immunity is the single most effective instrument by which States can escape liabilities in international arbitration and execution proceedings. This reality not only works hardship on investor-parties who have to bear the burden of unenforceable awards, but also operates to douse the efficacy of international arbitration. To this end, this paper examines the concept of sovereign immunity under international law and specifically examines the sovereign immunity concerns that arise during execution proceedings. The paper argues that there has been a paradigm shift from the traditional notions of immunity to a more restrictive approach which takes cognizance of investors’ interests. In its final part, the paper discusses approaches which can be adopted to deepen the paradigm shift in a bid to create a widely beneficial enabling environment for international commerce where investors are protected and state parties are accountable.
Keywords: International Arbitration, Sovereign Immunity, Execution Proceedings
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