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Host-State Counterclaims in Investment Arbitration: Holding Investors Accountable for Human Rights Violations
Klímová, Nikola ; Balaš, Vladimír (advisor) ; Šturma, Pavel (referee)
1 Abstract Host-State Counterclaims in Investment Arbitration: Holding Investors Accountable for Human Rights Violations International investment arbitration has been long criticized for its structural bias against host states in favour of the defence of the interests of investors. The one-way character of this dispute settlement mechanism has been, however, recently challenged in the light of numerous cases in which arbitrators were confronted with counterclaims of host states, requesting damages for investors' illegal conduct. To successfully assert counterclaims in arbitral proceedings, host states have to deal with a series of difficulties. The submission of a dispute to an arbitral tribunal first requires consent both on the part of an investor and a host state. Its scope is determined by the language of dispute settlement provisions in international investment agreements. While these instruments generally accept a wide range of investors' claims related to their investments, counterclaims of host states fall within the jurisdiction of tribunals only if the international investment agreements contain a dispute settlement clause with broad wording. The second condition which concerns the admissibility of host states' counterclaims is their close connection with the primary claims advanced by investors....
Host-State Counterclaims in Investment Arbitration: Holding Investors Accountable for Human Rights Violations
Klímová, Nikola ; Balaš, Vladimír (advisor) ; Šturma, Pavel (referee)
1 Abstract Host-State Counterclaims in Investment Arbitration: Holding Investors Accountable for Human Rights Violations International investment arbitration has been long criticized for its structural bias against host states in favour of the defence of the interests of investors. The one-way character of this dispute settlement mechanism has been, however, recently challenged in the light of numerous cases in which arbitrators were confronted with counterclaims of host states, requesting damages for investors' illegal conduct. To successfully assert counterclaims in arbitral proceedings, host states have to deal with a series of difficulties. The submission of a dispute to an arbitral tribunal first requires consent both on the part of an investor and a host state. Its scope is determined by the language of dispute settlement provisions in international investment agreements. While these instruments generally accept a wide range of investors' claims related to their investments, counterclaims of host states fall within the jurisdiction of tribunals only if the international investment agreements contain a dispute settlement clause with broad wording. The second condition which concerns the admissibility of host states' counterclaims is their close connection with the primary claims advanced by investors....

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