In Accordance with which Host State Laws? Restoring the 'Defence' of Investor Illegality in Investment Arbitration

Abstract

© The Author 2014. Published by Oxford University Press. All rights reserved. Many bilateral investment treaties include provisions to the effect that investors must comply with host state law. These clauses provide an important mechanism for host states to 'defend' themselves against investment treaty claims: tribunals have, in some cases, rejected jurisdiction over claims where investors have failed to comply with host state law. However, some tribunals have proposed limitations on the extent of host state law with which investors must comply. Other tribunals have accepted investors' arguments that the state is estopped from denying the investor's compliance with host state law, due to rep..