Magnifier Search

CME v. Czech Republic

Type of decisionFinal Award
Date of decision14 March 2003
Tribunal
Wolfgang Kühn (President)
Stephen M. Schwebel
Ian Brownlie (dissenting)
Legal instrumentBIT between Czech Republic and Netherlands (1991)
Related decision(s)Partial Award, 13 September 2001
Further information

Statements from this decision

You are currently viewing the statements in their context. To view them in a list, click here.
If a choice of law clause requires a decision "on the basis of the law", the decision must be based on well-recognized international law precedents
It is a general principle of international arbitration that a tribunal is not allowed to decide ex aequo et bono without authorization by the parties
In case restitution in kind is not possible, the respondent must pay a sum corresponding to the fair market value of the investment before the breach of treaty occurred
As long as the treaty does not require an exhaustion of local remedies, jurisdiction of a tribunal can be established even if the state has not treated the investment finally through judicial process
A tribunal does not need to research or apply national law if it has neither been argued nor been identified as essential to the decision
Within a choice of law clause, it is important to distinguish whether a tribunal shall apply certain sources of law, or take them into account
It is a general principle of international arbitration that a tribunal is not allowed to decide ex aequo et bono without authorization by the parties
If a choice of law clause requires a decision "on the basis of the law", the decision must be based on well-recognized international law precedents
A party is capable of waiving lis pendens and res judicata defences
Res judicata requires identical parties, the same subject matter and the same cause of action
A party is capable of waiving lis pendens and res judicata defences
A "company group" theory is not generally accepted in international arbitration; thus, a shareholder and a company cannot be considered an identical party, e.g. within the meaning of the res judicata defence
Compound interest does not need to be awarded if the purpose of compensation does not require it
The basis of the interest rate is not determined by the currency of the claim, but by the provisions of the applicable law
After an unlawful expropriation, interest has to be awarded from the date the principle sum should have been paid; the date may depend on the rules of national law
The standard of compensation according to the fair market value of the asset on expropriation is relevant for the calculation of damages for the breach of other standards of protection
A claimant has a duty to mitigate losses
A (partial) award is binding on the tribunal and the parties
It is a general principle of international arbitration that a tribunal is not allowed to decide ex aequo et bono without authorization by the parties

Feedback

Above you will find 15 statement(s) from this decision. Please note that when viewing the statements in their context, the same statement may appear multiple times if it is relevant for more than one topic. Did we miss something? Feel free to send us your suggestions!