Abstract
This chapter explores the penetration in investment arbitration of a new actor: the legitimate government of the Respondent-State, in competition with the de facto government, for the representation of the State before investment tribunals. The chapter addresses whether ICSID and ICSID Additional Facility arbitral tribunals have jurisdiction to determine who is the legitimate government of the respondent State, and thus, who is the proper representative of the State. It concludes that such decision escapes the tribunal’s jurisdiction and advocates, inter alia, that the decision should be taken at the political level by the State Members of the World Bank.
Thanks to Sofia de Sampaio Jalles, Francisca Seara Cardoso, Edward Thorn, Adam Jankowski and Sofia Kurtis de Alzaga for your help in editing this paper.
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Notes
- 1.
Maduro parece deslegitimado luego de su dudoso triunfo electoral. La Capital, 22 May 2018, www.lacapital.com.ar/el-mundo/maduro-parece-deslegitimado-luego-su-dudoso-triunfo-electoral-n1610559.html (last accessed 24 August 2020).
- 2.
La Asamblea Nacional en Venezuela desconoce el segundo mandato de Nicolás Maduro. RT, 5 January 2019, www.actualidad.rt.com/actualidad/301160-asamblea-nacional-venezuela-desconocer-mandato-maduro (last accessed 24 August 2020); AD, PJ y VP no participarán en elecciones presidenciales. El Nacional, 20 February 2018, www.elnacional.com/venezuela/politica/participaran-elecciones-presidenciales_223759/ (last accessed 24 August 2020).
- 3.
Catena P, Gobierno apuesta a endurecer postura por Venezuela en reunión con Grupo de Lima. La Tercera, 2 May 2018, www.latercera.com/politica/noticia/gobierno-apuesta-endurecer-postura-venezuela-reunion-grupo-lima/151678 (last accessed 24 August 2020); Villalobos P, Costa Rica apoya resolución que censura convocatoria prematura de elecciones en Venezuela. Amelia Rueda, 23 February 2018, www.ameliarueda.com/nota/costa-rica-resolucion-desconoce-convocatoria-prematura-eleccion-venezuela(last accessed 24 August 2020); Dobson P, VIII Americas Summit: Cuba & Bolivia Stand by Venezuela amid US Threats. Venezuela Analysis, 16 April 2018, www.venezuelanalysis.com/news/13768 (last accessed 24 August 2020); Gobierno de los Países Bajos no reconoce elecciones venezolanas. El Nacional, 23 May 2018, www.elnacional.com/mundo/europa/gobierno-los-paises-bajos-reconoce-elecciones-venezolanas_236734/ (last accessed 24 August 2020); Russia Criticizes Calls to Boycott Venezuela’s Elections, US Plans for Regime Change. TeleSUR, 4 May 2018, www.telesurenglish.net/news/Russia-Criticizes-Calls-to-Boycott-Venezuelas-Elections-US-Plans-for-Regime-Change-20180504-0003.html (last accessed 24 August 2020).
- 4.
La OEA aprobó resolución que declara ilegítimo el nuevo Gobierno de Nicolás Maduro. El Universal, 10 January 2019, www.eluniversal.com/politica/30186/la-oea-aprueba-resolucion-que-declara-ilegitimo-gobierno-de-venezuela (last accessed 24 August 2020); Estados Unidos y la OEA desconocen el gobierno de Nicolás Maduro. Expansión, 10 January 2019, www.expansion.mx/mundo/2019/01/10/estados-unidos-y-la-oea-desconocen-el-gobierno-de-Nicolás-maduro (last accessed 24 August 2020); La CIDH instó a Venezuela a convocar “otras” elecciones con “sufragio libre”. El Universal, 19 May 2018, www.eluniversal.com/politica/9783/st-condiciones-de-publicacion.html (last accessed 24 August 2020); Grupo de Lima rechaza elecciones presidenciales de Venezuela. TeleSUR, 13 February 2018, www.telesurtv.net/news/Grupo-de-Lima-rechaza-elecciones-presidenciales-de-Venezuela-20180213-0062.html (last accessed 24 August 2020).
- 5.
MUD no participará en elecciones presidenciales del 22-A. El Nacional, 21 February 2018, www.elnacional.com/oposicion/mud-participara-elecciones-presidenciales-del-22-a_224001 (last accessed 24 August 2020); La MUD anuncia que no participará en las presidenciales de Venezuela y Maduro dice que quiere “megaelección” que incluya parlamentarias y locales. BBC Mundo, 21 February 2018, www.bbc.com/mundo/noticias-america-latina-43148830 (last accessed 24 August 2020).
- 6.
Maduro parece deslegitimado luego de su dudoso triunfo electoral. La Capital, 22 May 2018, www.lacapital.com.ar/el-mundo/maduro-parece-deslegitimado-luego-su-dudoso-triunfo-electoral-n1610559.html (last accessed 24 August 2020).
- 7.
Juan Guaidó jura como presidente de Venezuela ante miles de opositores. El Comercio, 23 January 2019, www.elcomercio.pe/mundo/venezuela/venezuela-vivo-oposicion-marcha-miercoles-23-enero-Nicolás-maduro-directo-23e-noticia-600055 (last accessed 24 August 2020); Vinogradoff L, Maduro se convierte en presidente “ilegítimo” de Venezuela, aislado por la comunidad internacional. ABC, 11 January 2019, www.abc.es/internacional/abci-comienza-toma-posesion-maduro-no-reconocida-comunidad-internacional-201901101634_noticia.html (last accessed 24 August 2020).
- 8.
Art. 233 of the Venezuelan Constitution: There will be absolute absence of the President of the Republic in the case of: death, resignation, (…) as well as the popular revocation of his mandate. While the new president is elected and takes office, the President of the National Assembly’ will be in charge of the Presidency of the Republic. (Free translation from the author).
- 9.
Cambio histórico en Venezuela: La oposición gana las elecciones parlamentarias. RT, 7 December 2015, www.actualidad.rt.com/actualidad/193510-venezuela-oposicion-lidera-elecciones-parlamentarias (last accessed 24 August 2020).
- 10.
Venezuela election: Fourteen ambassadors recalled after Maduro win. BBC News, 22 May 2018, www.bbc.com/news/world-latin-america-44204632 (last accessed 24 August 2020).
- 11.
Recognition has been granted with different consequences for his representatives. See Paddeu F, Dunkelberg A, Recognition of Governments: Legitimacy and Control Six Months after Guaidó. Opinio Juris, 18 July 2019, www.opiniojuris.org/2019/07/18/recognition-of-governments-legitimacy-and-control-six-months-after-guaido (last accessed 24 August 2020).
- 12.
Torres A, ‘Here is a list of countries recognizing Juan Guaidó as Venezuela’s interim president. ABC Local 10, 13 March 2019, www.local10.com/news/venezuela/here-is-list-of-countries-recognizing-juan-guaido-as-venezuela-s-interim-president (last accessed 24 August 2020); The last recognition seems to be from Greece: Ministry of Foreign Affairs announcement on the recognition of J. Guaido as President a.i. of Venezuela. Ministry of Foreign Affairs, 12 July 2019, https://www.mfa.gr/en/current-affairs/statements-speeches/ministry-of-foreign-affairs-announcement-on-the-recognition-of-guaido-as-president-ai-of-venezuela.html (last accessed 24 August 2020).
- 13.
The White House, Statement from President Donald J. Trump Recognizing Venezuelan National Assembly President Juan Guaido as the Interim President of Venezuela. The White House, 23 January 2019, www.whitehouse.gov/briefings-statements/statement-president-donald-j-trump-recognizing-venezuelan-national-assembly-president-juan-guaido-interim-president-venezuela (last accessed 24 August 2020); Wadhams N, Rosati A, Talev M, Maduro Squeezed as Trump Recognizes Guaido and Protests Expand. Bloomberg, 23 January 2019, www.bloomberg.com/news/Art.s/2019-01-23/trump-said-to-intend-to-recognize-guaido-as-venezuela-president (last accessed 24 August 2020).
- 14.
Sanderson C and Jones T, ICSID committee challenged in Venezuela row. Global Arbitration Review, 17 April 2020, https://globalarbitrationreview.com/article/1225799/icsid-committee-challenged-in-venezuela-row (last accessed 24 August 2020); Crystallex International Corp v. Bolivarian Republic of Venezuela, USCA, (3rd Cir. 2019), Transcript of the oral hearing, 15 April 2019, p. 178:8–12, https://www.italaw.com/sites/default/files/case-documents/italaw10518.pdf (last accessed 24 August 2020); Crystallex International Corp v. Bolivarian Republic of Venezuela, USCA, (3rd Cir. 2019) Opinion of the Court, 29 July 2019, fn. 2, https://www.italaw.com/sites/default/files/case-documents/italaw10704.pdf (last accessed 24 August 2020).
- 15.
Lee Anderson J, Venezuela’s Two Presidents Collude. The New Yorker, 3 June 2019, https://www.newyorker.com/magazine/2019/06/10/venezuelas-two-presidents-collide (last accessed 24 August 2020); Faiola A, Juan Guaidó promised to save Venezuela. Now the flame he lit is petering out, and his U.S. backers are weighing their options. Washington Post, 17 December 2019, https://www.washingtonpost.com/world/the_americas/juan-guaido-promised-to-save-venezuela-a-year-later-the-flame-he-lit-is-petering-out-his-us-backers-are-weighing-their-options/2019/12/17/48a18186-1495-11ea-80d6-d0ca7007273f_story.html (last accessed 24 August 2020); Long G, Aides to Venezuela’s Guaidó quit over plan to topple Maduro. Financial Times, 11 May 2020, https://www.ft.com/content/a3bfd388-222e-4f4e-96b3-0a0ad3bee911 (last accessed 24 August 2020); Lafuente J, Juan Guaidó: “We need a solution in Venezuela no matter what.” El Pais, 17 December 2019, https://english.elpais.com/elpais/2019/12/16/inenglish/1576491263_356074.html (last accessed 24 August 2020); The battle for Venezuela’s future. The Economist, 2 February 2019, https://www.economist.com/leaders/2019/02/02/the-battle-for-venezuelas-future (last accessed 24 August 2020).
- 16.
El TSJ de Venezuela declara nulo el Estatuto de la Transición aprobado por el Parlamento. Notimerica, 11 February 2019, www.notimerica.com/politica/noticia-tsj-venezuela-declara-nulo-estatuto-transicion-aprobado-parlamento-20190211121618.html (last accessed 24 August 2020).
- 17.
Fiscal pide anular designación de magistrados y responsabiliza al Gobierno por seguridad de su familia. Informe21, 12 June 2017, www.informe21.com/politica/fiscal-luisa-ortega-pide-anular-la-designacion-de-33-magistrados-del-tsj (last accessed 1 August 2020); Federación Nacional de Abogados emite nota de protesta ante sentencias del TSJ (+Pronunciamiento). Versión Final, 1 April 2017, www.versionfinal.com.ve/politica-dinero/federacion-nacional-de-abogados-emite-nota-de-protesta-ante-sentencias-del-tsj-pronunciamiento (last accessed 24 August 2020); Designados nuevos magistrados del TSJ. El Nacional, 23 December 2015, www.elnacional.com/venezuela/politica/designados-nuevos-magistrados-del-tsj_38324/ (last accessed 24 August 2020); Acceso a la Justicia califica al TSJ como politizado y parcializado. Runrun, 12 January 2017, www.runrun.es/nacional/292643/acceso-a-la-justicia-califica-al-tsj-como-politizado-y-parcializado (last accessed 24 August 2020).
- 18.
Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated eight Venezuelan government officials pursuant to Executive Order 13692. Authenticated U.S. Government Information, 8 March 2015, https://www.treasury.gov/resource-center/sanctions/Programs/Documents/13692.pdf (last accessed 24 August 2020).
- 19.
Legislative Gazzette N° 4, 20 February 2019, http://www.asambleanacional.gob.ve/gacetas (last accessed 24 August 2020).
- 20.
Art. 15 (b) of the Statute that Governs the Transition to Democracy to Reestablish the Full Force and Effect of the Constitution of the Bolivarian Republic of Venezuela (the “Estatuto”, a statute approved by the Venezuela National Assembly in accordance with Art. 333 of the Venezuelan Constitution, meant to regulate the “unprecedented and imminent” political change affecting the country).
- 21.
Art. 1 to the National Assembly’s Agreement, 19 March 2019: Ratify that all acts and contracts adopted or signed by Reinaldo Muñoz Pedroza, invoking his status as Attorney General of Republic, must be considered non-existent, in accordance with article 138 of the Constitution of the Bolivarian Republic of Venezuela, and that therefore, such acts and contracts will not be attributable to the State. (Free translation from the author), https://www.asambleanacional.gob.ve/actos/detalle/acuerdo-ratificacion-usurpacion-procurador-general-de-la-republica-y-en-apoyo-del-procurador-especial (last accessed 24 August 2020).
- 22.
Art. 2 to the National Assembly’s Agreement: Ratify that the judicial and extrajudicial representation of the Venezuelan State, including in international arbitrations, rests exclusively with the Procurador Especial appointed in accordance with article 15 of the Statute that governs the transition to democracy to restore the validity of the constitution of the Bolivarian Republic of Venezuela, or in the attorneys appointed by him. (Free translation from the author), 19 March 2019, www.asambleanacional.gob.ve/actos/detalle/acuerdo-ratificacion-usurpacion-procurador-general-de-la-republica-y-en-apoyo-del-procurador-especial (last accessed 24 August 2020).
- 23.
Art. 15(b) of the Statute: (…) the President in charge of the Republic may designate whoever acts as special attorney [procurador especial] for the defense and representation of the rights and interests of the Republic, State companies and other international decentralized entities of the Public Administration. The procurador especial shall have the capacity to appoint legal representatives, including in international arbitration proceedings, and shall exercise the powers mentioned in numerals 7, 8, 9 and article 13 of the Organic Law and the Office of the Attorney General of the Republic, with the limitations derived from article 84 and this Statute. Such representation will be especially oriented to ensure the protection, control and recovery of State assets abroad, as well as to execute any action that is necessary to safeguard the rights and interests of the State. The procurador appointed in this way will have the power to execute any action and exercise all the rights that the Procurador General would have, with respect to the assets mentioned here. For such purposes, he must comply with the same conditions that the Law requires to become the [Procurador General de la República] Attorney General of the Republic.
- 24.
Sondra Faccio, New Developments in Proceedings Involving Venezuela: Interim President Guaidó Intervenes Before US Courts. Kluwer Arbitration Blog, November 24 2019, http://arbitrationblog.kluwerarbitration.com/2019/11/24/new-developments-in-proceedings-involving-venezuela-interim-president-guaido-intervenes-before-us-courts/ (last accessed 24 August 2020).
- 25.
Crystallex International Corp v. Bolivarian Republic of Venezuela, USCA (3rd Cir. 2019), Opinion of the Court, 29 July 2019, fn. 2, https://www.italaw.com/sites/default/files/case-documents/italaw10704.pdf (last accessed 24 August 2020).
- 26.
Memorandum of Law in Support of Defendants’ Motion for Stay, https://www.courtlistener.com/recap/gov.uscourts.nysd.512231/gov.uscourts.nysd.512231.10.0.pdf (last accessed 24 August 2020).
- 27.
See tweet by the Special General Attorney, showing the letter sent to ICSID. www.twitter.com/ignandez/status/1110989446189645825 (last accessed 24 August 2020).
- 28.
Jones T, Perry S, ICSID Committee Rebuffs Guaidó. Global Arbitration Review, 10 May 2019, www.globalarbitrationreview.com/Art./1192627/icsid-committee-rebuffs-guaido (last accessed 24 August 2020).
- 29.
Jones T, Perry S, Guaidó calls on ICSID to take sides. Global Arbitration Review, 2 May 2019, www.globalarbitrationreview.com/Art./1190944/guaido-calls-on-icsid-to-take-sides (last accessed 24 August 2020).
- 30.
Jones T, Perry S, Guaidó calls on ICSID to take sides. Global Arbitration Review, 2 May 2019, www.globalarbitrationreview.com/Art./1190944/guaido-calls-on-icsid-to-take-sides (last accessed 24 August 2020); Mr. Hernández’ Letter to ICSID dated 29 April 2019.
- 31.
Gobierno Legítimo de Venezuela advierte al Banco Mundial sobre riesgos de reconocer al régimen de Maduro. Centro de comunicación nacional, 31 March 2020, https://presidenciave.com/presidencia/gobierno-legitimo-de-venezuela-advierte-al-banco-mundial-sobre-riesgos-de-reconocer-al-regimen-de-maduro/ (last accessed 24 August 2020).
- 32.
Sanderson C, Jones T, ICSID committee challenged in Venezuela row. Global Arbitration Review, 17 April 2020, https://globalarbitrationreview.com/article/1225799/icsid-committee-challenged-in-venezuela-row (last accessed 24 August 2020).
- 33.
Jones T, Perry S, ICSID Committee Rebuffs Guaidó. Global Arbitration Review, 10 May 2019 www.globalarbitrationreview.com/Art./1192627/icsid-committee-rebuffs-guaido (last accessed 24 August 2020).
- 34.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11.
- 35.
ConocoPhillips Petrozuata BV, ConocoPhillips Hamaca B.V. and ConocoPhillips Gulf of Paria BV v Bolivarian Republic of Venezuela (ICSID Case No. ARB/07/30); Sanderson C and Jones T, ICSID committee challenged in Venezuela row. Global Arbitration Review, 17 April 2020, https://globalarbitrationreview.com/article/1225799/icsid-committee-challenged-in-venezuela-row (last accessed 24 August 2020).
- 36.
ICSID, Advanced Search, https://icsid.worldbank.org/en/Pages/cases/AdvancedSearch.aspx (last accessed 24 August 2020).
- 37.
ICSID Arbitration Rules, Rule 18: (1) Each party may be represented or assisted by agents, counsel or advocates whose names and authority shall be notified by that party to the Secretary-General, who shall promptly inform the Tribunal and the other party. (2) For the purposes of these Rules, the expression “party” includes, where the context so admits, an agent, counsel or advocate authorized to represent that party.
- 38.
Baptista and Riofrío Piché (2019), para. 22.69.
- 39.
Baptista and Riofrío Piché (2019), para. 22.70.
- 40.
Baptista and Riofrío Piché (2019), para. 22.71.
- 41.
Baptista and Riofrío Piché (2019), para. 22.72.
- 42.
Interocean Oil Development Company and Interocean Oil Exploration Company v. Federal Republic of Nigeria, ICSID Case No. ARB/13/20, Procedural Order No 5, 15 October 2016, paras 55, 65, 95, 96(a); Baptista and Riofrío Piché (2019), para. 22.81.
- 43.
Baptista and Riofrío Piché (2019), para. 22.82; Generation Ukraine, Inc. v. Ukraine, ICSID Case No. ARB/00/9, Award, 16 September 2003, para. 16.1.; Scimitar Exploration Limited v. Bangladesh and Bangladesh Oil, Gas and Mineral Corporation, ICSID Case No. ARB/92/2, Award, 5 April 1994, paras 7–8, 21, 25, 29; Interocean Oil Development Company and Interocean Oil Exploration Company v. Federal Republic of Nigeria, ICSID Case No. ARB/13/20, Procedural Order No 5, 15 October 2016, paras 50(a), 52.
- 44.
Art. 52(1)(a) of the ICSID Convention.
- 45.
Art. 52(1)(d) of the ICSID Convention.
- 46.
Art. 52(1)(b) of the ICSID Convention.
- 47.
Art. 42(1) of the ICSID Convention: The arbitral tribunals must decide a dispute in accordance with such rules of law as may be agreed by the parties.
- 48.
Art. 52(1)(b) of the ICSID Convention.
- 49.
Schreuer (2001), p. 683.
- 50.
Art. 44 of the ICSID Convention: Any arbitration proceeding shall be conducted in accordance with the provisions of this Section and, except as the parties otherwise agree, in accordance with the Arbitration Rules in effect on the date on which the parties consented to arbitration. If any question of procedure arises which is not covered by this Section or the Arbitration Rules or any rules agreed by the parties, the Tribunal shall decide the question.
- 51.
Commission and Moloo (2018), para. 1.17.
- 52.
Generation Ukraine, Inc. v. Ukraine, ICSID Case No. ARB/00/9, Award, 16 September 2003, para. 16.1.
- 53.
Scimitar Exploration Limited v. Bangladesh and Bangladesh Oil, Gas and Mineral Corporation, ICSID Case No. ARB/92/2, Award, 5 April 1994, paras 7–8, 21, 25, 29.
- 54.
Interocean Oil Development Company and Interocean Oil Exploration Company v. Federal Republic of Nigeria, ICSID Case No. ARB/13/20, Procedural Order No 5, 15 October 2016, paras 50(a), 52.
- 55.
Hrvatska Elektroprivreda d.d. v. Republic of Slovenia, ICSID Case No. ARB/05/24, Order Concerning the Participation of Counsel, 6 May 2008; Rompetrol Group N.V. v. Romania, ICSID Case No. ARB/06/3, Decision of the Tribunal on the Participation of a Counsel, 14 January 2010.
- 56.
Hrvatska Elektroprivreda d.d. v. Republic of Slovenia, ICSID Case No. ARB/05/24, Order Concerning the Participation of Counsel, 6 May 2008, para. 24.; Rompetrol Group N.V. v. Romania, ICSID Case No. ARB/06/3, Decision of the Tribunal on the Participation of a Counsel, 14 January 2010, para. 20.
- 57.
In Hrvatska the claimant challenged a counsel appointed by the respondent on the ground that he was a barrister at the same chambers as the president of the tribunal. The claimant was notified of the participation of the barrister only shortly before the hearing. The tribunal found that, although the respondent was free to select its legal team as it saw fit prior to the constitution of the tribunal, it was not entitled to subsequently amend the composition of its legal team in such a fashion as to imperil the tribunal’s status or legitimacy. The tribunal concluded that a fundamental principle (such as that of a party’s right to choose its representative) must give way to overriding exceptions. In that case, such overriding exception was that of the immutability of properly constituted tribunals enshrined in Art. 56(1) of the Convention. In light of the fundamental rule determined in Art. 56(1) of the Convention and given its inherent procedural powers confirmed by Art. 44 of the Convention, the tribunal concluded that it had the power to exclude counsel and that the circumstances of the case required so.
- 58.
Hrvatska Elektroprivreda d.d. v. Republic of Slovenia, ICSID Case No. ARB/05/24, Order Concerning the Participation of Counsel, 6 May 2008, para. 25.
- 59.
Rompetrol Group N.V. v. Romania, ICSID Case No. ARB/06/3, Decision of the Tribunal on the Participation of a Counsel, 14 January 2010, para. 18.
- 60.
Of course, the author recognizes the principle of kompetenz-kompetenz enshrined in Art. 41(1) of the ICSID Convention, and thus, has no doubt that the Tribunal shall be the judge of its own competence. In this case, only to find that it is not within its jurisdiction to determine who is the legitimate representative of the Respondent State for that case, much less in general.
- 61.
Generation Ukraine, para. 16.1; Scimitar Exploration paras 7–8, 21, 25, 29; Interocean Oil, paras 50(a), 52.
- 62.
Hrvatska Elektroprivreda d.d. v. Republic of Slovenia, ICSID Case No. ARB/05/24, Order Concerning the Participation of Counsel, 6 May 2008.
- 63.
Rompetrol Group N.V. v. Romania, ICSID Case No. ARB/06/3, Decision of the Tribunal on the Participation of a Counsel, 14 January 2010.
- 64.
Crawford (2012), p. 144. (Crawford was referring to the recognition of States, but the recognition of governments is addressed by the author in the same chapter and he is of the opinion that recognition of government and state is closely related, although not identical.)
- 65.
Art. 9 of the Venezuela-Uruguay BIT, https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/2382/download (last accessed 24 August 2020).
- 66.
ICSID Arbitration Rules, Rule 53: The provisions of these Rules shall apply mutatis mutandis to any procedure relating to the interpretation, revision or annulment of an award and to the decision of the Tribunal or Committee.
- 67.
About UN Membership. United Nations, www.un.org/en/sections/member-states/about-un-membership/index.html (last accessed 24 August 2020); European Parliament Resolution on Recognition of Palestine Statehood. (2014/2964(RSP), 17 December 2014, www.europarl.europa.eu/doceo/document/TA-8-2014-0103_EN.html (last accessed 24 August 2020). The European Parliament takes the same position, as evidenced by its 2014 resolution on the recognition of the Palestinian State: “the recognition of the State of Palestine falls in the competence of the Member States.”
- 68.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, para. 31.
- 69.
Art. 42(1) of ICSID Convention: (…) In the absence of such agreement, the Tribunal shall apply the law of the Contracting State party to the dispute and such rules of international law as may be applicable.
- 70.
Fábrica de Vidrios Los Andes, C.A. and Owens-Illinois de Venezuela, C.A. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/12/21.
- 71.
Jones T, Perry S, ICSID committee rebuffs Guaidó. Global Arbitration Review, 10 May 2019, www.globalarbitrationreview.com/Art./1192627/icsid-committee-rebuffs-guaido (last accessed 24 August 2020).
- 72.
Jones T, Perry S, ICSID committee rebuffs Guaidó. Global Arbitration Review, 10 May 2019, www.globalarbitrationreview.com/Art./1192627/icsid-committee-rebuffs-guaido (last accessed 24 August 2020).
- 73.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, para. 51. https://jusmundi.com/en/document/decision/es-valores-mundiales-s-l-y-consorcio-andino-s-l-c-republica-bolivariana-de-venezuela-resolucion-procesal-no-2-thursday-29th-august-2019 (last accessed 24 August 2020).
- 74.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, paras 48–49.
- 75.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, para. 32.
- 76.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, para. 31.
- 77.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, para. 32.
- 78.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, para. 32.
- 79.
Enrique Heemsen and Jorge Heemsen v. Bolivarian Republic of Venezuela, PCA Case No. 2017-18.
- 80.
Longreef investments AVV v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/11/5, Annulment Procedure.
- 81.
Valores Mundiales, S.L. and Consorcio Andino S.L. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB/13/11, Procedural Order No. 2, 29 August 2019, paras 36–37.
- 82.
Air Canada v. Bolivarian Republic of Venezuela, ICSID Case No. ARB(AF)/17/1.
- 83.
The only practical recourse would be to raise the issue when opposing execution of the Award, which comes with its own legal challenges.
- 84.
For example, by violating human rights, creating a humanitarian crisis, preventing the International community from proving aid to diminish the crisis, and staying in government through fraudulent elections.
- 85.
Talmon (1999), pp. 499–537. This issue could be the subject of an independent paper on its own, which the author would like to address in the future.
- 86.
Talmon (1998), pp. 189–190.
- 87.
Although probably based on the evidence presented by the parties.
- 88.
A strict analysis over the illegitimacy of the appointment of the judges to the Supreme Court would require a constitutional analysis which escapes the scope of this paper. However, the lack of legitimacy of the Venezuelan Supreme Court has been widely denounced inter alia by the Venezuelan Attorney General, the National Federation of Lawyers and the Procurador Especial in his role as an administrative law professor. See Fiscal pide anular designación de magistrados y responsabiliza al Gobierno por seguridad de su familia. Informe21, 12 June 2017, www.informe21.com/politica/fiscal-luisa-ortega-pide-anular-la-designacion-de-33-magistrados-del-tsj (last accessed 24 August 2020); Federación Nacional de Abogados emite nota de protesta ante sentencias del TSJ. Versión Final, 1 April 2017, www.versionfinal.com.ve/politica-dinero/federacion-nacional-de-abogados-emite-nota-de-protesta-ante-sentencias-del-tsj-pronunciamiento (last accessed 24 August 2020).
- 89.
National Assembly’s Agreement. 19 March 2019, www.asambleanacional.gob.ve/actos/detalle/acuerdo-ratificacion-usurpacion-procurador-general-de-la-republica-y-en-apoyo-del-procurador-especial (last accessed 24 August 2020).
- 90.
ConocoPhillips Petrozuata BV, ConocoPhillips Hamaca B.V. and ConocoPhillips Gulf of Paria BV v Bolivarian Republic of Venezuela, ICSID Case No. ARB/07/30.
- 91.
Sanderson C, Jones T, ICSID committee Challenged in Venezuela Row. Global Arbitration Review, 17 April 2020, https://globalarbitrationreview.com/article/1225799/icsid-committee-challenged-in-venezuela-row (last accessed 24 August 2020).
- 92.
Gobierno Bolivariano denuncia ante el Banco Mundial convenio con Ciadi. NJGI, 25 January 2012, www.democracyctr.org/justinvestment_org_es/2012/01/gobierno-venezolano-denuncia-ante-el-banco-mundial-convenio-con-ciadi (last accessed 24 August 2020).
- 93.
Art. 20(3) of ICSID AF Arbitration Rules.
- 94.
Schreuer (2001), p. 1244; Overview of Arbitration under the ICSID Additional Facility. www.icsid.worldbank.org/en/Pages/process/Overview-ICSID-Additional-Facility-Arbitration.aspx (last accessed 24 August 2020). Explaining that “(i)n addition to the provisions of the Arbitration (Additional Facility) Rules, the laws of the place of arbitration apply to the proceeding.”
- 95.
Art. 1 of the ICSID AF Arbitration Rules.
- 96.
Art. 26 of the ICSID AF Arbitration Rules: Representation of the Parties: (1) Each party may be represented or assisted by agents, counsel or advocates whose names and authority shall be notified by that party to the Secretariat, which shall promptly inform the Tribunal and the other party. (2) For the purposes of these Rules, the expression “party” includes, where the context so admits, an agent, counsel or advocate authorized to represent that party.
- 97.
Art. 27 of the ICSID AF Arbitration Rules: Procedural Orders: The Tribunal shall make the orders required for the conduct of the proceeding.
- 98.
Which the author submits that it does not, for the same reasons analyzed supra in the case of ICSID Arbitrations.
- 99.
Blackaby et al. (2015), p. 172.
- 100.
Blackaby et al. (2015), p. 173: Stating that “the place, or ‘seat’, of the arbitration is not merely a matter of geography. It is the territorial link between the arbitration itself and the law of the place in which that arbitration is legally situated: When one says that London, Paris or Geneva is the place of arbitration, one does not refer solely to a geographical location. One means that the arbitration is conducted within the framework of the law of arbitration of England, France or Switzerland or, to use an English expression, under the curial law of the relevant country. The geographical place of arbitration is the factual connecting factor between that arbitration law and the arbitration proper, considered as a nexus of contractual and procedural rights and obligations between the parties and the arbitrators. The seat of an arbitration is thus often intended to be its legal centre of gravity.
- 101.
Webster and Buhler (2014), p. 344: Stating that “the Tribunal must ensure that the procedure meets the requirements of due process at the place of arbitration, the issue is what those basic requirements are and how they are interpreted in some of the major centers of arbitration.”
- 102.
Born (2015), pp. 599–600.
- 103.
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), opened for signature 10 June 1958, Art V.1(b); UNCITRAL Model Law on International Commercial Arbitration (UNCITRAL Model Law), Art 34.2.a(ii).
- 104.
New York Convention, Art. V.2.(b); UNCITRAL Model Law, Art. 34.2.b(ii).
- 105.
Gold Reserve v. Republic of Venezuela, Case I: 14-cv-02014- JEB, Doc. 19, 6 (D.D.C. 12 June 2015), Respondent Bolivarian Republic of Venezuela’s Motion to Dismiss Petition and to Deny Recognition of Arbitral Award, or in the Alternative, to Stay Enforcement, with Incorporated Memorandum of points and Authorities, https://www.italaw.com/sites/default/files/case-documents/italaw10196.pdf (last accessed 24 August 2020).
- 106.
Gold Reserve v. Republic of Venezuela, Case I: 14-cv-02014- JEB, Doc. 19, 6 (D.D.C. 12 June 2015), Respondent Bolivarian Republic of Venezuela’s Motion to Dismiss Petition and to Deny Recognition of Arbitral Award, or in the Alternative, to Stay Enforcement, with Incorporated Memorandum of points and Authorities, p. 22/50, https://www.italaw.com/sites/default/files/case-documents/italaw10196.pdf (last accessed 24 August 2020).
- 107.
Gold Reserve v. Republic of Venezuela, Case I: 14-cv-02014- JEB, Doc. 19, 6 (D.D.C. 12 June 2015), Respondent Bolivarian Republic of Venezuela’s Motion to Dismiss Petition and to Deny Recognition of Arbitral Award, or in the Alternative, to Stay Enforcement, with Incorporated Memorandum of points and Authorities, p. 22/50, https://www.italaw.com/sites/default/files/case-documents/italaw10196.pdf (last accessed 24 August 2020).
- 108.
Gold Reserve v. Republic of Venezuela, Case I: 14-cv-02014- JEB, Doc. 19, 6 (D.D.C. 12 June 2015), Respondent Bolivarian Republic of Venezuela’s Motion to Dismiss Petition and to Deny Recognition of Arbitral Award, or in the Alternative, to Stay Enforcement, with Incorporated Memorandum of points and Authorities, p. 32/50, https://www.italaw.com/sites/default/files/case-documents/italaw10196.pdf (last accessed 24 August 2020).
- 109.
Art. 52 of the French Constitution: (T)he President of the Republic shall negotiate and ratify (international) treaties; French Const. Art. 14: (T)he President of the Republic shall accredit ambassadors and envoys extraordinary to foreign powers; foreign ambassadors and envoys extraordinary shall be accredited to him.
- 110.
Assemblée Nationale Français, Resolution on Recognition of Palestine Statehood, JI 5, Dec. 2, 2014 “Invit(ing) the French Government to recognize the State of Palestine” http://www.assemblee-nationale.fr/14/ta/ta0439.asp (last accessed 24 August 2020).
- 111.
Chapus (1990), p. 950.
- 112.
Conseil d’Etat, No. 120437/120737, Sept. 23, 1992; Conseil d’Etat, No. 171277, Sept. 29, 1995.
- 113.
Danic (2013), pp. 527–528.
- 114.
Cowell A, Erlanger S, France Becomes First Country to Recognize Libyan Rebels. The New York Times, 10 March 2011, www.nytimes.com/2011/03/11/world/europe/11france.html (last accessed 24 August 2020). In 2011, France’s Minister for Foreign Affairs, publicly announced that Libya’s National Transitional Council was the sole holder of governmental authority in France’s relations with the Libyan State and its Entities.
- 115.
Tribunal administratif de Paris, No. 1111788, July 25, 2011.
- 116.
Joint Declaration on Venezuela. France Diplomatie, 4 February 2019, https://www.diplomatie.gouv.fr/IMG/pdf/2019_02_04_joint_declaration_on_venezuela_cle42db6d.pdf (last accessed 24 August 2020).
- 117.
Tribunal administratif de Paris, No. 1111788, 25 July 2011, holding that “it is not for the French administrative court, the ordinary court of the French administration, to rule, even by way of exception, on the legality of an administrative decision issued by a foreign authority, appointing, in this case, the Director of the Libya’s Economic and Social Development Fund.”
- 118.
In fact, in the PDVSA v. Petropar case an ICC Tribunal seated in Paris decided on a request filed by the Paraguayan State entity, Petropar, to stay the proceedings and strike out the Claimant (PDVSA)’s reply on the merits on the ground that the latter represents the views of the Maduro government, which is not recognized by Paraguay. The ICC Tribunal decided in favour of the stay and reserved on the merits, after Guaidó intervened in support of the request of the Respondent. http://arbitrationblog.kluwerarbitration.com/2019/05/25/icc-tribunal-recognizes-guaidos-intervention-and-stays-proceedings-in-pdvsa-v-petropar/?doing_wp_cron=1592900903.1685969829559326171875 (last accessed 24 August 2020).
- 119.
Albari (2016), p. 175.
- 120.
Charlotin D, Hepburn J, US Courts diverge from ICSID annulment committee on Venezuela’s Representation in International Disputes. IA Reporter, 23 May 2019, www.iareporter.com/Art.s/us-courts-diverge-from-icsid-annulment-committee-on-venezuelas-representation-in-international-disputes (last accessed 24 August 2020).
- 121.
Rusoro Mining Limited, Gold Fields Limited v. Bolivarian Republic of Venezuela (2018) USCA Case #18-7044, https://www.italaw.com/sites/default/files/case-documents/italaw10521.pdf (last accessed 24 August 2020).
- 122.
Talmon (1998), p. 190.
- 123.
Van den Berg (1999), pp. 114–145: Explaining that “(t)he ultimate purpose of the arbitration agreement is to render an enforceable award.”
- 124.
Member Countries. The World Bank, www.worldbank.org/en/about/leadership/members (last accessed 24 August 2020).
- 125.
ICSID is one of the five organizations of the World Bank Group and it is in charge of providing facilities for conciliation and arbitration of international investment disputes. The Centre has a Secretariat—in charge of administering the Centre’s case load—and an Administrative Council, composed of one representative of each Contracting State. Normally the person appointed by a State to the Board of Governors is also the State’s representative at the Administrative Council.
- 126.
Public Information from ICSID Webpage https://icsid.worldbank.org/en/Pages/about/ICSID%20And%20The%20World%20Bank%20Group.aspx (last accessed 24 August 2020).
- 127.
Public Information from ICSID Webpage https://icsid.worldbank.org/en/Pages/about/ICSID%20And%20The%20World%20Bank%20Group.aspx (last accessed 24 August 2020).
- 128.
Art. 3 of ICSID Convention: The Centre shall have an Administrative Council and a Secretariat and shall maintain a Panel of Conciliators and a Panel of Arbitrators.
Art. 4 of ICSID Convention: (1) The Administrative Council shall be composed of one representative of each Contracting State. An alternate may act as representative in case of his principal’s absence from a meeting or inability to act. (2) In the absence of a contrary designation, each governor and alternate governor of the Bank appointed by a Contracting State shall be ex officio its representative and its alternate respectively.
- 129.
Art. 6 of ICSID Convention: (1) Without prejudice to the powers and functions vested in it by other provisions of this Convention, the Administrative Council shall:
-
(a)
adopt the administrative and financial regulations of the Centre;
-
(b)
adopt the rules of procedure for the institution of conciliation and arbitration proceedings;
-
(c)
adopt the rules of procedure for conciliation and arbitration proceedings (hereinafter called the Conciliation Rules and the Arbitration Rules);
-
(d)
approve arrangements with the Bank for the use of the Bank’s administrative facilities and services;
-
(e)
determine the conditions of service of the Secretary-General and of any Deputy Secretary-General;
-
(f)
adopt the annual budget of revenues and expenditures of the Centre;
-
(g)
approve the annual report on the operation of the Centre. The decisions referred to in sub-paragraphs (a), (b), (c) and (f) above shall be adopted by a majority of two-thirds of the members of the Administrative Council.
(2) The Administrative Council may appoint such committees as it considers necessary.
(3) The Administrative Council shall also exercise such other powers and perform such other functions as it shall determine to be necessary for the implementation of the provisions of this Convention.
-
(a)
- 130.
Campos R, Lawder D, Venezuela leadership issue still blocking IMF, World Bank aid. Reuters, 11 April 2019, www.reuters.com/Art./us-imf-worldbank-venezuela/venezuela-leadership-issue-still-blocking-imf-world-bank-aid-id (last accessed 24 August 2020).
- 131.
Campos R, Lawder D, Venezuela leadership issue still blocking IMF, World Bank aid. Reuters, 11 April 2019, www.reuters.com/Art./us-imf-worldbank-venezuela/venezuela-leadership-issue-still-blocking-imf-world-bank-aid-id (last accessed 24 August 2020).
- 132.
Campos R, ‘Large’ IMF majority on Venezuela leader issue needed: Lagarde. Reuters, 13 April 2019, www.reuters.com/Art./us-imf-worldbank-venezuela/large-imf-majority-on-venezuela-leader-issue-needed-lagarde-id (last accessed 24 August 2020).
- 133.
Sanderson C, Jones T, ICSID committee Challenged in Venezuela Row. Global Arbitration Review, 17 April 2020, https://globalarbitrationreview.com/article/1225799/icsid-committee-challenged-in-venezuela-row (last accessed 24 August 2020).
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Baptista, K. (2021). New Actors in Investment Arbitration: The Legitimate Government. In: Gourgourinis, A. (eds) Transnational Actors in International Investment Law. European Yearbook of International Economic Law(). Springer, Cham. https://doi.org/10.1007/978-3-030-60679-4_4
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