Case Report (free download)
Case Report by Jorge Arturo González, Editor: Diego Luis Alonso Massa
Claimant brought an action for relief against Venezuela pursuant to the Venezuela-Spain bilateral investment treaty ('BIT'), claiming that Venezuela breached, among others, fair and equitable treatment, full protection and security, and expropriation protections set out in the BIT in relation with its investment in Clorox Venezuela, a company with operating headquarters and two factories in Venezuela. Respondent objected to the Tribunal's jurisdiction on several grounds. The Tribunal conceded to one of Venezuela's arguments, considering that Claimant, while being the owner of an investment in Venezuela, had not made the investment itself. Consequently, Claimant was not protected under the BIT and the Tribunal declined its own jurisdiction.
Requirement under the BIT that the investor made an investment; difference between holding an investment and having made an investment; indirect investments; treaty shopping; abuse of process.
Case report provided by International Arbitration Case Law (IACL)
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