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The Award In Saluka Investments V. Czech Republic

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Chapter Summary

This chapter analyzes the award issued over the claim that the Czech Republic had violated its bilateral investment treaty with the Netherlands through actions following the failed privatization of one of the biggest Czech banks. It considers the content of the requirement to state reasons under the U.N. Commission on International Trade Law (UNCITRAL) Arbitration Rules and provides further factual and procedural information on the dispute between the Czech Republic and Saluka. It also delineates certain desirable characteristics of a well-reasoned award and finds that the tribunal was successful in fulfilling the reasons requirement in the sections on jurisdiction, fair and equitable treatment, non-impairment, and full security and protection. Finally, the chapter highlights the benefits of a well-reasoned arbitral decision by presenting changes in the parties' negotiating positions after the release of the award. The award also contains an interesting contrast within itself.

Keywords: arbitral decision; bilateral investment; Czech Republic; jurisdiction; Saluka; UNCITRAL



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