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

Settlement of Disputes between a Party and an Investor of the other Party. (1) If an investor of a Party considers that a measure applied by the other Party is inconsistent with an obligation of this Agreement, thus causing loss or damage to him or his investment, he may request consultations with a view to resolving the matter amicably. (2) Any such matter which has not been settled within a period of six months from the date of written request for consultations may be referred to the courts or administrative tribunals of the Party concerned or to international arbitration. In the latter event the investor has the choice between either of the following: (a) the International Centre for Settlement of Investment Disputes (ICSID) provided for by the Convention on the Settlement of Investment Disputes between States and Nationals of other States, opened for signature at Washington on March 18, 1965; and (b) an ad-hoc arbitral tribunal which, unless otherwise agreed upon by the parties to the dispute, shall be established under the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL). (3) Each Party hereby gives its unconditional and irrevocable consent to the submission of an investment dispute to international arbitration in accordance with paragraph 2 above, except for disputes with regard to Article 10 paragraph 2 of this Agreement. (4) Once the investor has referred the dispute to either a national tribunal or any of the international arbitration mechanisms provided for in paragraph 2 above, the choice of the procedure shall be final. (5) An investor may not submit a dispute for resolution according to this Article if more than five years have elapsed from the date the investor first acquired or should have acquired knowledge of the events giving rise to the dispute. (6) The Party which is party to the dispute shall at no time whatsoever during the process assert as a defence its immunity or the fact that the investor has received, by virtue of an insurance contract, a compensation covering the whole or part of the incurred damage. (7) Neither Party shall pursue through diplomatic channels a dispute submitted to international arbitration unless the other Party does not abide by and comply with the arbitral award. (8) The arbitral award shall be final and binding for the parties to the dispute and shall be executed without delay according to the law of the Party concerned.

Settlement of Disputes between a Party and an Investor of the other Party. (1) If an investor of a Party considers that a measure applied by Any disputes which arise within the other Party is inconsistent with an obligation terms of this Agreement, thus causing loss or damage between a Party and an investor of the other Party who has made investments in the territory of the first, shall, to him or his investmentthe extent possible, he may request consultations with a view to resolving the matter amicablybe settled through consultations. (2) Any such matter which has If through these consultations a solution can not been settled be reached within a period of six three months from the date of written request for consultations may be referred to the courts or administrative tribunals of the Party concerned or to international arbitration. In the latter event settlement, the investor has may submit the choice between either of the followingdispute: (a) to a competent tribunal of the International Centre for Settlement of Investment Disputes (ICSID) provided for by Party in whose territory the Convention on the Settlement of Investment Disputes between States and Nationals of other States, opened for signature at Washington on March 18, 1965investment was made; andor (b) to an ad-hoc arbitral tribunal which, unless otherwise agreed upon by the parties to the dispute, shall be established under according to the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL); or (c) to international arbitration of the International Center for Settlement of Investment Disputes (ICSID), created by the Convention on the Settlement of Investment Disputes between States and Nationals of other States opened for signature in Washington on March 18, 1965, if both Parties are party to the said Convention; as long as this requirement is not met, each Party agrees that the dispute may be settled under the rules governing the Additional Facility for the Administration of Proceedings by the Secretariat of ICSID. (3) Each Party hereby gives its unconditional advance and irrevocable consent to the submission of an investment for any dispute to international arbitration in accordance with paragraph 2 above, except for disputes with regard to Article 10 paragraph 2 of this Agreementkind to be submitted to any of the arbitration tribunals mentioned under paragraphs 2 (b) and (c). (4) Once the an investor has referred submitted the dispute to either a national competent tribunal of the Party in whose territory the investment was made or to any of the international above-mentioned arbitration mechanisms provided for in paragraph 2 abovetribunals, the choice election of the either procedure shall be final. (5) An investor may not submit a dispute for resolution according to this Article if more than five years have elapsed from The arbitration tribunal shall make its decision on the date the investor first acquired or should have acquired knowledge basis of the events giving rise national law, including the rules relating to conflicts of law, of the disputeParty involved in the dispute in whose territory the investment has been made, the provisions of this Agreement, the terms of any specific agreement which may have been entered into regarding the investment as well as the principles of international law. (6) The Party which is party to arbitration awards shall be final and binding on both parties and shall be enforced in accordance with the dispute shall at no time whatsoever during the process assert as a defence its immunity or the fact that the investor has received, by virtue of an insurance contract, a compensation covering the whole or part law of the incurred damageParty in whose territory the investment was made. (7) Neither Once a dispute has been submitted to the competent tribunal or international arbitration in accordance with this Article, neither Party shall pursue the dispute through diplomatic channels a dispute submitted to international arbitration unless the other Party does not has failed to abide by and or comply with any judgement, award, order or other determination made by the arbitral awardcompetent international or national tribunal in question. (8) The arbitral award shall be final and binding for the parties to the dispute and shall be executed without delay according to the law of the Party concerned.

Settlement of Disputes between a Party and an Investor of the other Party. (1) If . Disputes arising within the scope of this Treaty, between an investor and a party of a Party considers that a measure applied by the other Party is inconsistent with an obligation that has made investments in the territory of this Agreementthe first, thus causing loss or damage to him or his investmentshall, he may request consultations with a view to resolving the matter amicablyas far as possible, be settled through amicable consultations. 2. If consultations fail to produce an solution within five (25) Any such matter which has not been settled within a period of six months from the date of written request for consultations settlement, the investor may be referred to submit the dispute to: a) The competent courts or administrative tribunals of the Party concerned or to in whose territory the investment was made; or b) The arbitration a national of the Party in whose territory the investment has been made; or c) To international arbitration. In the latter event the investor has the choice between either : i) The ICSID if both parties are members of this; or ii) The rules of the following: (a) additional facility for the International Centre for Settlement administration of Investment Disputes (ICSID) provided for conciliation or arbitration proceedings and Fact-Finding by the Convention on secretariat of ICSID, where one of the Settlement Parties is not a member of Investment Disputes between States and Nationals of other States, opened for signature at Washington on March 18, 1965the ICSID; andor (biii) an ad-hoc arbitral tribunal which, unless otherwise agreed upon by The arbitration in accordance with the parties to the dispute, shall be established under the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL), in the event that no party is a member of the ICSID. To this end, each party consents to advance and irrevocably any difference cannot be referred to arbitration. (3) Each Party hereby gives its unconditional and irrevocable consent to the submission of an investment dispute to international arbitration in accordance with paragraph 2 above, except for disputes with regard to Article 10 paragraph 2 of this Agreement. (4) . Once the investor has referred submitted the dispute to either a national tribunal or any the competent court of the international arbitration mechanisms provided for Party in paragraph 2 abovewhose territory the investment has been made or an arbitral tribunal, the choice of one or other of the procedure shall be final. (54. The arbitral tribunal shall decide on the basis of: a) An investor may not submit a dispute for resolution according to The provisions of this Article if more than five years have elapsed from Treaty and other agreements concluded between the date the investor first acquired or should have acquired knowledge parties; b) The national law of the events giving rise Party in whose territory the investment was made, including the terms of any specific agreement concluded in relation to the disputeinvestment; and c) The rules and the universally accepted principles of international law. (6) The Party which is party to the dispute shall at no time whatsoever during the process assert as a defence its immunity or the fact that the investor has received, by virtue of an insurance contract, a compensation covering the whole or part of the incurred damage. (7) Neither Party shall pursue through diplomatic channels a dispute submitted to international arbitration unless the other Party does not abide by and comply with the arbitral award. (8) 5. The arbitral award awards shall be final and binding for upon the parties to the dispute and shall be executed without delay according to in accordance with the domestic law of the Party concernedin whose territory the investment has been made. 6. The parties shall treat through diplomatic channels matters related to disputes submitted to court proceedings or to arbitration in accordance with this article, until the relevant processes are completed, except where the other party to the dispute has failed to comply with the court decision or arbitral tribunal's decision on the terms established in the respective decision or judgement and in accordance with domestic law. For the purposes of subparagraph (a) of article 9.11 shall be covered by the term public interest to: Costa Rica: public Interest legally established; El Salvador: public purpose or social interest; Guatemala: usefulness collective social interest or public interest; Honduras: public need or interest; Nicaragua: public purpose or social interest; and Dominican Republic: public purpose or social interest.