Common use of Settlement of Disputes Between a Contracting Party Clause in Contracts

Settlement of Disputes Between a Contracting Party. and a National of the Other Contracting Party (1) Any legal dispute between one Contracting Party and a national of the other Contracting Party concerning an investment of the latter in the territory of the former shall, if possible, be settled amicably. (2) If such a dispute cannot be settled according to the provisions of paragraph 1 of this article within a period of three months from the date either party to the dispute requested amicable settlement, the dispute shall at the request of the national concerned be submitted either to the judicial procedures provided by the internal law of the Contracting Party in the territory of which the investment has been made, or to international arbitration. (3) If the difference has been submitted to the competent court of the Contracting Party in whose territory the investment was made, reference may only be made to the international tribunal within thirty days from the date on which notice of reply to the claim has been given, or if the competent court has failed to make a final decision on the matter in the term of eighteen months from the date on which notice of claim is given. However, each Contracting Party can offer a more favourable treatment. (4) In case the dispute is referred to international arbitration in accordance with the provisions of this Article, each Contracting Party hereby gives its consent to its submission to the International Centre for Settlement of Investment Disputes for settlement by arbitration under the Convention on the Settlement of Investment Disputes between States and Nationals of other States, opened for signature at Washington on 18 March 1965. A legal person which is a national of one Contracting Party and which before such a dispute arises is controlled by nationals of the other Contracting Party shall, in accordance with Article 25 (2) (b) of the Convention, for the purpose of the Convention be treated as a national of the other Contracting Party. (5) Neither Contracting Party shall give diplomatic protection, or bring an international claim, in respect of a dispute which one of its nationals and the other Contracting Party shall have consented to submit or shall have submitted to judicial procedures or arbitration under this Article, unless: a) the former Contracting Party shall have failed to abide by and comply with the award rendered in such a dispute; or b) the Secretary-General of the International Centre for Settlement of Investment Disputes, or an arbitral tribunal constituted by it, decides that the dispute is not within the jurisdiction of the Centre. For the purpose of this paragraph, diplomatic protection shall not include informal diplomatic exchanges for the sole purpose of facilitating a settlement of the dispute.

Settlement of Disputes Between a Contracting Party. and a National an Investor of the Other Contracting Party (1) Any legal dispute The disputes which arise within the terms of this Agreement, between one a Contracting Party and a national an investor of the other Contracting Party concerning an investment of the latter who has made investments in the territory of the former first, shall, if to the extent possible, be settled amicablythrough consultations. (2) If such through these consultations a dispute cansolution could not be settled according to the provisions of paragraph 1 of this article reached within a period of three five months from the date either party to the dispute requested amicable of written request for settlement, the dispute shall at investor may submit the request of the national concerned be submitted either to the judicial procedures provided by the internal law of the Contracting Party in the territory of which the investment has been made, or to international arbitration.dispute: (3a) If the difference has been submitted to the competent court tribunal of the Contracting Party in whose territory the investment was made, reference may only be made to the international tribunal within thirty days from the date on which notice of reply to the claim has been given, or if the competent court has failed to make a final decision on the matter in the term of eighteen months from the date on which notice of claim is given. However, each Contracting Party can offer a more favourable treatment.; or (4Two) In case the dispute is referred to international arbitration in accordance with the provisions of this Article, each Contracting Party hereby gives its consent to its submission to the International Centre Center for Settlement of Investment Disputes for settlement (ICSID), created by arbitration under the Convention on the Settlement of Investment Disputes between States and Nationals of other States, States opened for signature at in Washington on 18 March 18, 1965. A legal person which is a national of one , in case both Contracting Party and which before such a become parties of this Convention. As long as this requirement is not met, each Contracting Party agrees that the dispute arises is controlled by nationals shall be submitted to arbitration pursuant to the Rules of the other Additional Facility of the ICSID; or (Three) to an ad-hoc tribunal which, unless otherwise agreed upon by the parties to the dispute, shall be established according to the arbitration rules of United Nations Commission on International Trade Law (UNCITRAL); (3) The choice made as per subparagraphs a, b and c herein above shall be final. (4) Each Contracting Party shall, in accordance with Article 25 (2) gives its advanced and irrevocable consent for any dispute of this kind to be submitted to any of the arbitration tribunals mentioned under literal (b) and (c) of the Convention, for the purpose of the Convention be treated as a national of the other Contracting Partyforegoing numeral. (5) Neither The arbitration awards shall be final and binding on both parties and shall be enforced in accordance with the laws of the Contracting Party in whose territory the investment was made. (6) The Contracting Parties shall give refrain from treating through diplomatic protectionchannels matters related to the disputes referred to local courts or international arbitration in accordance with this Article until the proceedings have been concluded, or bring an international claim, in respect of a dispute which one of its nationals and except where the other Contracting Party shall have consented to submit or shall have submitted to judicial procedures or arbitration under this Article, unless: a) the former Contracting Party shall have dispute has failed to abide by and or comply with the court decision or award rendered in such a dispute; or b) the Secretary-General of the International Centre for Settlement of Investment Disputes, Arbitration Tribunal in the terms established by the respective decision or an arbitral tribunal constituted by it, decides that the dispute is not within the jurisdiction of the Centre. For the purpose of this paragraph, diplomatic protection shall not include informal diplomatic exchanges for the sole purpose of facilitating a settlement of the disputeaward.