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SGS v. Paraguay

Type of decisionAward
Date of decision10 February 2012
Tribunal
Stanimir Alexandrov (President)
Donald Francis Donovan
Pablo García Mexía
Legal instrumentBIT between Paraguay and Switzerland (1992)
Related decision(s)Decision on Jurisdiction, 12 February 2010
Further informationFull text of the decision

Statements from this decision

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An exclusive jurisdiction clause in a contract does not bar a tribunal from examining a contract breach as a breach of an umbrella clause
An umbrella clause cannot only be breached by actions that a commercial counterparty cannot take; i.e., an abuse of state power is not required
A contractual obligation is a commitment within the meaning of an umbrella clause
After a tribunal has found an IIT's breach, any additional breach is not relevant unless it leads to further damages
An exclusive jurisdiction clause in a contract does not bar a tribunal from examining a contract breach as a breach of an umbrella clause
A party bears the burden of proof in establishing the facts that he or she asserts
In case of a delayed payment of monetary obligations due, it is a universal principle of international law to apply interest as of the date payment became due

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