The Legitimacy Crisis of Investment Arbitration: Fake News or Valid Criticism?

Discussion with Mr. James Boykin, a Partner at Huges Hubbard & Reed on investment treaty arbitration. Investment treaty arbitration has been under increasing attack from critics who contend that the system limits states’ authority to regulate. This “regulatory chill” criticism is often accompanied by criticism that the participants in the system – arbitrators and counsel – have a vested interest in preserving the system for the benefit of multi-national companies. Recently, Russia invoked such arguments before the Swiss Supreme Court to set aside two jurisdiction awards in international arbitration proceedings arising out of its expropriation of Ukrainian-properties in Crimea after the annexation of Crimea. Swiss Court announced that it would conduct public deliberations in October 2018. In his talk, Mr. Boykin will survey the various criticisms raised against the system of investor-state dispute resolution and consider whether those criticisms are supported by facts.