International Arbitral Jurisdiction International Litigation in Practice General Editors Loretta Malintoppi Eduardo Valencia-Ospina Advisory Board David Anderson John R. Crook Gilbert Guillaume Pieter Kooijmans Sean D. Murphy Alain Pellet Brigitte Stern Prosper Weil Rüdiger Wolfrum Sir Michael Wood VOLUME 2 The titles published in this series are listed at the back of this volume, and also at brill.nl/inli International Arbitral Jurisdiction By Chittharanjan F. Amerasinghe LEIDEN • BOSTON 2011 This book is printed on acid-free paper. Library of Congress Cataloging-in-Publication Data Amerasinghe, Chittharanjan Felix, 1933– International arbitral jurisdiction / by Chittharanjan F. Amerasinghe. p. cm. — (International litigation in practice ; v. 2) Includes index. ISBN 978-90-04-18133-5 (hardback : alk. paper) 1. Arbitration, International. 2. Jurisdiction (International law) I. Title. KZ6115.A46 2011 341.5’22—dc22 2010050599 ISSN 1874-0502 ISBN 978 90 04 18133 5 Copyright 2011 by Koninklijke Brill NV, Leiden, The Netherlands. Koninklijke Brill NV incorporates the imprints Brill, Hotei Publishing, IDC Publishers, Martinus Nijhoff Publishers and VSP. All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from the publisher. Authorization to photocopy items for internal or personal use is granted by Koninklijke Brill NV provided that the appropriate fees are paid directly to The Copyright Clearance Center, 222 Rosewood Drive, Suite 910, Danvers, MA 01923, USA. Fees are subject to change. Contents Abbreviations ................................................................................................ ix Table of Cases ............................................................................................... xiii PART I PROLOGUE Chapter One Introductory Observations .............................................. 3 History of Arbitration ............................................................................. 4 Arbitration as a Means of Dispute Settlement .................................... 7 Representation before Arbitral Tribunals ............................................ 14 Personality of Arbitral Tribunals ........................................................... 15 The Place of Precedent ............................................................................ 15 Scheme of Work ....................................................................................... 17 PART II GENERALITIES Chapter Two La Compétence de la Compétence .................................. 23 History ........................................................................................................ 23 Initial Explanation of the Rule ............................................................... 26 Current Status ........................................................................................... 30 Possible Limitations ................................................................................. 33 Raising Proprio Motu the Issue of la Compétence de la Compétence ............................................................................................ 40 Finality of the Determination on la Compétence de la Compétence ............................................................................................ 41 Jurisdiction of Other Tribunals to Decide on the Compétence of a Tribunal .............................................................................................. 42 The Issue of Conflict of Interest ............................................................ 44 vi Contents Chapter Three Consent as the Basis of Jurisdiction ............................ 47 The Requirement ...................................................................................... 47 Requirements for Effective Consent ..................................................... 49 Consent and Individuals ......................................................................... 53 The Relationship of Consent to Inherent Jurisdiction ....................... 54 Parameters of Consent ............................................................................ 55 Chapter Four Interpretation of Clauses Submitting to Jurisdiction ................................................................................................ 57 General Principles .................................................................................... 57 Restrictive Interpretation ........................................................................ 60 The Contra Proferentem Rule ................................................................. 63 The Doctrine of Sovereignty ................................................................... 65 Chapter Five The Matter of Compétence ............................................... 69 Forum Prorogatum and Compétence ..................................................... 72 The Judgment on Compétence and Res judicata ................................. 74 Identifying Matters of Compétence ....................................................... 76 Time for Raising Issues of Compétence ................................................ 78 Sources of Jurisdiction ............................................................................. 79 Scope of Primary Jurisdiction .............................................................. 82 Fundamental Limitations on the Scope of Primary Jurisdiction ..... 85 Exercise of Jurisdiction and Discretion ............................................... 92 Proof of Jurisdiction ................................................................................ 93 Chapter Six Inadmissibility ...................................................................... 95 Grounds for Inadmissibility ................................................................... 97 Waiver and Estoppel ................................................................................ 100 Time for Raising Objections to Admissibility ..................................... 117 Chapter Seven Incidental Jurisdiction: Intervention and Interim Measures .................................................................................................... 119 Intervention ............................................................................................... 121 Interim Measures ..................................................................................... 130 Chapter Eight Jurisdiction vis-à-vis Remedies ..................................... 147 Inherent or Implied Jurisdiction ........................................................... 151 The Principle of Non Ultra Petita and Jurisdiction ........................... 165 Chapter Nine Jurisdiction to Reopen Cases ......................................... 167 Res judicata and Finality ......................................................................... 167 Reopening Cases ....................................................................................... 174 Contents vii PART III THE IRAN-U.S. CLAIMS TRIBUNAL Chapter Ten The Iran-U.S. Claims Tribunal ........................................ 199 Primary Jurisdiction: Compétence and Admissibility ....................... 199 Incidental Jurisdiction: Interim Measures ........................................... 243 Reopening Cases ....................................................................................... 259 Annex to Chapter Ten ................................................................................. 268 1. Declaration of the Government of the Democratic and Popular Republic of Algeria (General Declaration), 19 January 1981 .................................................................................. 268 2. Declaration of the Government of the Democratic and Popular Republic of Algeria Concerning the Settlement of Claims by the Government of the United States of America and the Government of the Islamic Republic of Iran (Claims Settlement Declaration), 19 January 1981 ..................................... 274 Index ............................................................................................................... 279 Abbreviations AD Annual Digest AIDI Annuaire de l’institut de droit international AJIL American Journal of International Law Am. UJILP American University Journal of International Law and Policy Arb. International Arbitration International Brooklyn JIL Brooklyn Journal of International Law BYIL British Yearbook of International Law Calif. WILJ California Western International Law Journal Canadian YBIL Canadian Yearbook of International Law CIJ Court International de Justice CJEC Court of Justice of the European Communities CLJ Cambridge Law Journal CSAT Commonwealth Secretariat Arbitral Tribunal CSD Claims Settlement Declaration (Iran-US) Dickinson JIL Dickinson Journal of International Law Duke LJ Duke Law Journal EC European Communities ECR European Court Reports European JIL European Journal of International Law FILJ Foreign Investment Law Journal GA UN General Assembly General Declaration Declaration of the Government of the Democratic and Popular Republic of Algeria (January 19, 1981) German YBIL German Yearbook of International Law Hague Recueil Recueil des Cours de l’Académie de Droit Interna- tional de la Hague Harv. ILJ Harvard International Law Journal IACHR Inter-American Court of Human Rights IAT International Administrative Tribunal ICC International Chamber of Commerce ICJ International Court of Justice ICJYB Yearbook of the ICJ x Abbreviations ICLQ International and Comparative Law Quarterly ICSID International Centre for Settlement of Invest- ment Disputes ICTY International Criminal Tribunal for the Former Yugoslavia IJIL Indian Journal of International Law ILC International Law Commission ILM International Legal Materials ILO International Labour Organization ILOAT ILO Administrative Tribunal ILR International Law Reports Iran-US CTR Iran-US Claims Tribunal Reports ITLOS International Tribunal for the Law of the Sea J. Int’l Arb. Journal of International Arbitration JDI Journal de Droit International JUNAT Judgments of the UNAT LDA London Debt Agreement LN League of Nations LNTS LN Treaty Series MAT Mixed Arbitral Tribunal Mich. LR Michigan Law Review MIGA Multilateral Investment Guaranty Agency Moore, History and Digest Moore, History and Digest of the International Arbitrations to which the United States has been a Party (1898), 6 vols. NAFTA North American Free Trade Agreement National LJ National Law Journal Neth. Quarterly HR Netherlands Quarterly on Human Rights NILR Netherlands International Law Review NYJICL New York University Journal of International and Comparative Law NYUJIL New York University Journal of International Law OAS Organization of American States OASAT OAS Administrative Tribunal OECD Organization for European Cooperation and Development PCA Permanent Court of Arbitration PCIJ Permanent Court of International Justice R.A.I. Lapradelle et Politis, Receueil des arbitrages internationaux