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Research on Four Generations of ICSID Annulment Standard

Author: YangYan
Tutor: ChenYongMei
School: Southwest University of Political Science
Course: International Law
Keywords: ICSID arbitral award annulment standard four generations
CLC: D997.4
Type: Master's thesis
Year: 2012
Downloads: 18
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ICSID annulment system is the only system to maintain the justice in ICSIDarbitration system. In this system, ad hoc committee reviews cases under Article52ofthe Washington Convention to determine whether the arbitral award is annulled. Thereasons which are provided for annulment by Article52are too simple, when the adhoc committee reviews the case, it has to interpret the reasons for annulment.However, each of the ad hoc committee may take a different approach to explain thereasons for the annulment, so resulting in the different annulment standards. From theifrst annulment case to the case in the summer of2010,there are four differentgenerations of annulment standards. Understanding of the general trend of eachgeneration, and studying on the difference of the standards on the same case, can helpus to make better understanding of the changing trend of the four generations. Basedon the research on the annulment standard, it may promote the development of theICSID arbitration system and protect the interests of the parties.This article is divided into three parts which include the Introduction, Text, andConclusion, The text consists of four chapters. Based on the research on theannulment standards, this article overall discusses the annulment standards of eachgeneration and analyses the trend of each generation.The ifrst chapter outlines four generations of the annulment standards. Accordingto the feature of every generation of the annulment standards, it simply introduces thecorresponding annulment cases, and approximately understands the case situation.And then this chapter discusses the approach to the standard and proposes some ideas.The second chapter discusses the four generations of annulment standards form‘‘the tribunal has manifestly exceeded its powers" view. The ad hoc committeedecides whether the arbitral tribunal has exceeded its power by it applies theapplicable law,and obtains the every generation of the annulment standards. Byanalyzing application of the annulment standard in practice, the scope of the ad hoccommittee’s review has gradually expanded and this annulment standard begins todecrease. This trend prompts the voice of the establishment of ICSID Appellate Bodygrowing louder,meanwhile,when parties sign the BIT, they should perfect the clauseof the applicable law. The third chapter discusses the four generations of annulment standards form“there has been a serious departure from a flindamental rule of procedure" view. Thead hoc committee decides whether the arbitral tribunal serious violates the basic rulesof procedure form three aspects of “violating the part’ys irght to be heard”“,violatingthe rules of evidence”“,violating the principle of fair treatment". By analyzing theapplication of the annulment standard in practice,the tribunal gradually pays attentionto the party’s right to be heard and the interpretation of “serious departure from afundamental rule of procedure,,has gradually become more clearly. These changeswill not only require the ICSID arbitration system to fully protect the irghts of theparties, but also require the arbitrator to continuously improve its quality.The fourth chapter discusses the four generations of annulment standards form“the award has failed to state the reasons on which it is based,,view. The ad hoccommittee decides whether the arbitral tribunal satisfies this annulment standard from“not state the reasons" and "contradictory reasons,’ two aspects. By analyzing theapplication of the annulment standard in practice, every generation of the annulmentstandards has gradually become widely. However, it is still lacking of unified standard.This change requires to establish the following precedent mechanism. The tribunalcan follow the precedent to arbitrate cases, not only to prevent the case which hasbeen annulled, but also improve the efficiency of the arbitration.

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CLC: > Political, legal > Legal > International law > Private international law > International Commercial Arbitration and the International Maritime Law
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