Common use of Disputes between an Investor and a Party Clause in Contracts

Disputes between an Investor and a Party. 1. Any dispute arising directly from an investment between one Party and an investor of the other Party should be settled amicably between the two parties to the dispute. 2. If the dispute has not been settled within three (3) months from the date on which it was raised in writing, the dispute may, at the choice of the investor, be submitted: (a) to the competent courts of the Party in whose territory the investment is made; or (b) to arbitration by the International Centre for Settlement of Investment Disputes (ICSID), established pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of other States, opened for signature ai Washington on 18 March 1965 (hereinafter referred to as the "Centre"), if the Centre is available; or (c) to arbitration by the Additional Facility of the Centre, if only one of the Parties is a signatory to the Convention referred to in subparagraph b of this paragraph; (d) an ad hoc arbitration tribunal to be established under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL); or (e) any other previously accepted ad hoc arbitration tribunal. 3. An investor who has submitted the dispute to a national court may nevertheless have recourse to one of the arbitral tribunals mentioned in paragraphs 2 (b) or 2 (e) of this Article if, before a judgment has been delivered on the subject matter by a national court, the investor declares not to pursue the case any longer through national proceedings and withdraws the case. 4. Any arbitration under this Article shall, at the request of either party to the dispute, be held in a state that is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), opened for signature at New York on 10 June 1958. Claims submitted to arbitration under this Article shall be considered to arise out of a commercial relationship or transaction for the purposes of Article 1 of the New York Convention. 5. Each Party hereby gives its unconditional consent to the submission of a dispute between it and an investor of the other Party to arbitration in accordance with this Article. 6. Neither of the Parties, which is a party to a dispute, can raise an objection, at any phase of the arbitration procedure or of the execution of an arbitral award, on account of the fact that the investor, which is the other party to the dispute, has received an indemnification covering a part or the whole of its losses by virtue of an insurance. 7. The award shall be final and binding on the parties to the dispute and shall be executed in accordance with national legislation of the State of the Party in whose territory the award is relied upon, by the competent authorities of the Party by the date indicated in the award.