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An analysis of the annulment mechanism under ICSID Jurisprudence
The International Centre for Settlement of Investment Disputes (ICSID) is celebrating its halfcentury existence this year. Having presided over more than 525 cases in various topics including annulment; it is no surprise that it is described as the premier international investment arbitration ins...
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University of Pretoria
2017
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| _version_ | 1867613569064894464 |
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| access_status_str | Open Access |
| author2 | Soyeju, Olufemi Olugbemiga |
| author_browse | Soyeju, Olufemi Olugbemiga |
| author_facet | Soyeju, Olufemi Olugbemiga |
| collection | Thesis |
| dc_rights_str_mv | © 2016 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | The International Centre for Settlement of Investment Disputes (ICSID) is celebrating its halfcentury
existence this year. Having presided over more than 525 cases in various topics
including annulment; it is no surprise that it is described as the premier international investment
arbitration institution in the world. Annulment was designed as an exceptional remedy to
safeguard against violation of fundamental legal principles. This provision, enshrined in the
ICSID Convention of 1966, stands out as the 'art', 'crown' and 'jewel' of ICSID jurisprudence.
The annual number of cases registered by ICSID increased rapidly in the last decade. To
date, there are 160 signatories and contracting states to the ICSID Convention. Awards
rendered under this mechanism are binding and have been successfully implemented without
interference by domestic courts.
What this statistic fails to show is that the rate of annulment has increased considerably.
This implies that out of every 344 arbitration cases registered; 150 ICSID Convention awards
have been rendered and 53 annulment proceedings instituted. This is against the background
that only few annulment applications existed in the institutions' early years. This remedy has
been pursued by both claimants and respondents to ICSID proceedings. Approximately 57
percent of annulment proceedings have been initiated by respondents (in all instances, states),
36 percent by claimants and 7 percent by both parties.
The annulment mechanism is deployed by ICSID in lieu of providing an appellate option.
Dissatisfied parties have employed this mechanism to challenge awards rendered by the
institution.
It follows that, despite the institution's uniqueness and widely recognised success in
international arbitration, annulment negates the principle of finality and certainty ? one of the
core principles of arbitration. The above flaw has led to the withdrawal of Latin America countries from the ICSID
Convention. Bolivia was the first to withdraw as it denounced its membership in 2007. This
was followed by Ecuador in 2010 and Venezuela in 2012. Countries like the United States,
South Africa and Germany have also revisited this provision and called for review of the whole
system.
This research calls for reform of the ICSID annulment mechanism. It arrives at practical
alternatives to be adopted by the institution aimed at creating finality and predictability in the
international arbitration system.
This mini-dissertation argues that finality and predictability can be achieved under ICSID
by establishing an appellate mechanism drawing lessons from the institutional framework of
the World Trade Organization Appellate Body Dispute Settlement System (WTO - DSS).
If the annulment mechanism negates the principle of finality in international arbitration,
then the ICSID objective of attaining predictability in international arbitration remains
fictitious. This research therefore adds to the growing voice that argues that amendment of the
annulment procedure is long overdue. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/58746 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:38:13.749Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/58746 An analysis of the annulment mechanism under ICSID Jurisprudence Soyeju, Olufemi Olugbemiga marianchamber05@gmail.com Ajemba, Linda Uzoamaka UCTD International Centre for Settlement of Investment Disputes ICSID Jurisprudence Law theses SDG-16 SDG-16: Peace, justice and strong institutions The International Centre for Settlement of Investment Disputes (ICSID) is celebrating its halfcentury existence this year. Having presided over more than 525 cases in various topics including annulment; it is no surprise that it is described as the premier international investment arbitration institution in the world. Annulment was designed as an exceptional remedy to safeguard against violation of fundamental legal principles. This provision, enshrined in the ICSID Convention of 1966, stands out as the 'art', 'crown' and 'jewel' of ICSID jurisprudence. The annual number of cases registered by ICSID increased rapidly in the last decade. To date, there are 160 signatories and contracting states to the ICSID Convention. Awards rendered under this mechanism are binding and have been successfully implemented without interference by domestic courts. What this statistic fails to show is that the rate of annulment has increased considerably. This implies that out of every 344 arbitration cases registered; 150 ICSID Convention awards have been rendered and 53 annulment proceedings instituted. This is against the background that only few annulment applications existed in the institutions' early years. This remedy has been pursued by both claimants and respondents to ICSID proceedings. Approximately 57 percent of annulment proceedings have been initiated by respondents (in all instances, states), 36 percent by claimants and 7 percent by both parties. The annulment mechanism is deployed by ICSID in lieu of providing an appellate option. Dissatisfied parties have employed this mechanism to challenge awards rendered by the institution. It follows that, despite the institution's uniqueness and widely recognised success in international arbitration, annulment negates the principle of finality and certainty ? one of the core principles of arbitration. The above flaw has led to the withdrawal of Latin America countries from the ICSID Convention. Bolivia was the first to withdraw as it denounced its membership in 2007. This was followed by Ecuador in 2010 and Venezuela in 2012. Countries like the United States, South Africa and Germany have also revisited this provision and called for review of the whole system. This research calls for reform of the ICSID annulment mechanism. It arrives at practical alternatives to be adopted by the institution aimed at creating finality and predictability in the international arbitration system. This mini-dissertation argues that finality and predictability can be achieved under ICSID by establishing an appellate mechanism drawing lessons from the institutional framework of the World Trade Organization Appellate Body Dispute Settlement System (WTO - DSS). If the annulment mechanism negates the principle of finality in international arbitration, then the ICSID objective of attaining predictability in international arbitration remains fictitious. This research therefore adds to the growing voice that argues that amendment of the annulment procedure is long overdue. tm2017 Centre for Human Rights LLM Unrestricted 2017-01-31T12:47:58Z 2017-01-31T12:47:58Z 2016 Mini Dissertation Ajemba, LU 2016, An analysis of the annulment mechanism under ICSID Jurisprudence, LLM Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/58746> D2016 http://hdl.handle.net/2263/58746 en © 2016 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD International Centre for Settlement of Investment Disputes ICSID Jurisprudence Law theses SDG-16 SDG-16: Peace, justice and strong institutions An analysis of the annulment mechanism under ICSID Jurisprudence |
| title | An analysis of the annulment mechanism under ICSID Jurisprudence |
| title_full | An analysis of the annulment mechanism under ICSID Jurisprudence |
| title_fullStr | An analysis of the annulment mechanism under ICSID Jurisprudence |
| title_full_unstemmed | An analysis of the annulment mechanism under ICSID Jurisprudence |
| title_short | An analysis of the annulment mechanism under ICSID Jurisprudence |
| title_sort | analysis of the annulment mechanism under icsid jurisprudence |
| topic | UCTD International Centre for Settlement of Investment Disputes ICSID Jurisprudence Law theses SDG-16 SDG-16: Peace, justice and strong institutions |
| url | http://hdl.handle.net/2263/58746 |