Summary

The Tribunal in the recent LG&E v Argentina ICSID arbitration award, concerning actions taken by Argentina during the financial crisis of late 1990's, held Argentina liable for breach of its obligations under the USA-Argentina BIT to provide fair and equitable treatment and to observe its contractual commitments towards investors. However, the Tribunal accepted the Republic's defence that the actions were taken under a 'state of necessity' and exempted Argentina from liability during the period of the crisis. The Tribunal held that the emergency nature of the crisis ...