Interaction Of International Tribunals And Domestic Courts In Investment Law

Abstract

One of the main purposes of investment arbitration is to avoid the use of domestic courts. From the investor's perspective, domestic courts are not an attractive forum for the settlement of their disputes with the host State. This chapter offers a broad overview of the interplay between international tribunals and domestic courts. It is possible to identify a number of typical forms of interaction between domestic courts and international investment tribunals. Some of these interactions are regulated by treaty or customary international law others have been developed through the practice of courts and tribunals. These interactions are broken down into the following categories: I. Prior use of domestic courts, II. Competition between investment tribunals and domestic courts, III. Support by domestic courts in investment arbitration, IV. Interference by domestic courts in investment arbitration, and V. Mutual scrutiny of investment tribunals and domestic courts. Keywords: customary international law; domestic courts; international investment; international tribunals; investment arbitration