PRAVNI ZAPISI • Year X • No. 2 • pp. 331-357
DISCONTINUANCE OF ARBITRATION PROCEEDINGS UNDER THE ICSID RULES
Prof. dr Maja Stanivuković
Professor, University in Novi Sad Law School
Pravni zapisi, No. 2/2019, pp. 332-357
Original Scientific Article
investment arbitration, ICSID, discontinuance
This study examines arbitration proceedings that were discontinued after being registered with the ICSID Secretariat under the ICSID Convention and ICSID Arbitration Rules or under the ICSID Additional Facility Rules between 2010 and 2019. The research focused on number of discontinued arbitration proceedings and the legal grounds invoked by the parties to discontinue the arbitration proceedings. The study revealed that settlements are the most common reason for the discontinuance of the proceedings. However, in a surprisingly small number of cases, the parties requested the arbitral tribunal to transform the settlement into an arbitral award on agreed terms. Furthermore, the number of cases discontinued due to the non-payment of deposits was equally small. Considering the grand entry of third-party funding into the field of investment arbitration, it may be predicted that the number of such cases will be even smaller in the future. The discontinuance of the proceedings due to non-activity of the parties is even less frequent. Regarding the states that have been involved in settlements, the author found that out of the 128 countries that have been respondents in at least one arbitration dispute during the period, 67 have settled at least one dispute, while 61 have not settled a single one. The picture of which countries tend to settle has changed comparing to the previous periods. The place of Serbia in this picture is not very good and should be improved. Serbia has had seven ICSID cases so far, but only one settlement. The high costs of the arbitration proceedings administered by ICSID justify investing more effort into creating a permanent mechanism which will enable settlement both in the pre-arbitration phase and after the case has been registered.