INTERNATIONAL COURT OF ARBITRATION. CASE No /AC

Similar documents
INTERNATIONAL CHAMBER OF COMMERCE INTERNATIONAL COURT OF ARBITRATION. CASE No /AC

PETER EXPLOSIVE THE REPUBLIC OF OCEANIA

ARBITRATION PURSUANT TO THE RULES OF ARBITRATION OF THE INTERNATIONAL CHAMBER OF COMMERCE ICC ARBITRATION NO /AC PETER EXPLOSIVE (CLAIMANT) Vs.

Foreign Direct Investment International Arbitration Moot Case

2016 FDI MOOT Africa Regional Rounds SKELETAL BRIEF FOR CLAIMANT

The 2016 Foreign Direct Investment International Arbitration Moot. Memorial for Claimant

CHAPTER 9 INVESTMENT. Section A

CHAPTER EIGHT INVESTMENT. Section A Investment. 1. This Chapter shall apply to measures adopted or maintained by a Party relating to:

Chapter Ten: Initial Provisions Comparative Study Table of Contents

INTERNATIONAL CHAMBER OF COMMERCE IN THE PROCEEDING BETWEEN PETER EXPLOSIVE. (Claimant) THE REPUBLIC OF OCEANIA. (Respondent) CASE NO.

AND THE GOVERNMENT OF. The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of,

AGREEMENT BETWEEN CANADA AND THE CZECH REPUBLIC FOR THE PROMOTION AND PROTECTION OF INVESTMENTS

D R A F T MODEL TEXT [DRAFT] AGREEMENT [ ] BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND

CHAPTER 9 INVESTMENT. Section A: Investment

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES Washington, D.C. (ICSID Case No. ARB/04/14) Wintershall Aktiengesellschaft (Claimant)

INTERNATIONAL CHAMBER OF COMMERCE IN THE PROCEEDING BETWEEN PETER EXPLOSIVE. (Claimant) THE REPUBLIC OF OCEANIA. (Respondent) CASE NO.

Agreement. Promotion and Protection of Investments

Oceania - Measure Affecting Arms Production Services

THE INTERANTIONAL COURT OF ARBITRATION OF THE INTERNATIONAL CHAMBER OF COMMERCE. Case 28000/AC

Box 16050, Stockholm, Sweden Phone: ,

Bilateral Investment Treaty between Netherlands and Cambodia

Siemens v Argentina, ICSID Case No. ARB/02/8, Award

SECTION A. Investment Protection. Article 9.1. Definitions

The Government of the Republic of Colombia and the Government of ---- hereinafter referred to as the "Contracting Parties";

Award Name and Date: Kompozit LLC v. Republic of Moldova (SCC Arbitration EA 2016/095) Emergency Award on Interim Measures 14 June 2016

Bilateral Investment Treaty between Netherlands and Lao

Agreement on encouragement and reciprocal protection of investments between the Republic of Nicaragua and the Kingdom of the Netherlands.

Vienna Convention on the Law of Treaties 1969

Vienna Convention on the Law of Treaties

The Protection of Foreigners and Investments Abroad Diplomatic Protection of Natural and Legal Persons

AGREEMENT BETWEEN THE GOVERNMENT OF BARBADOS AND THE GOVERNMENT OF THE REPUBLIC OF VENEZUELA FOR THE PROMOTION AND PROTECTION OF INVESTMENTS

MEMORANDUM FOR CLAIMANT 9 AUGUST 2013

Agreement on Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the Republic of Ghana.

MEMORIAL FOR THE CLAIMANT

International Court of Arbitration of the International Chamber of Commerce IN THE PROCEEDING BETWEEN. Peter Explosive (Claimant)

VIENNA CONVENTION ON THE LAW OF TREATIES

Agreement. between the Government of Hong Kong and the Government of New Zealand for the Promotion and Protection of Investments

Article 1 Field of Application

Treaty between the Federal Republic of Germany and Ceylon for the Promotion and Reciprocal Protection of Investments.

Agreement for. the Promotion and Protection of Investment. between the Republic of Austria. and. the Federal Republic of Nigeria

Agreement on Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the Oriental Republic of Uruguay

NCIA MOOT COMPETITION APRIL, Page 1 of 10

Bilateral Investment Treaty between Korea and Thailand

TEAM BADAWI IN THE INTERNATIONAL CHAMBER OF COMMERCE CLAIMANT RESPONDENT MEMORIAL FOR CLAIMANT. Peter Explosive. Republic of Oceania

AGREEMENT ON ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS BETWEEN THE KINGDOM OF THE NETHER LANDS AND BELIZE

United Nations Convention on the Law of Treaties, Signed at Vienna 23 May 1969, Entry into Force: 27 January United Nations (UN)

MEMORIAL FOR CLAIMANT

ADJUDICATION: RAISING OBJECTIONS TO THE ADJUDICATOR S JURISDICTION OR BREACH OF SOP ACT AT THE EARLIEST POSSIBLE OPPORTUNITY

Islamic Republic of Pakistan (ICSID Case No. ARB/01/13) Procedural Order No. 2

The Government of the Republic of Korea and the Government of the People's Republic of

Box 16050, Stockholm, Sweden Phone: ,

Agreement on encouragement and reciprocal protection of investments between the Republic of Kazakhstan and the Kingdom of the Netherlands.

Provisional Record 5 Eighty-eighth Session, Geneva, 2000

REQUEST FOR ARBITRATION

(ICSID Case Nos. ARB/10/11 and ARB/10/18) Procedural Order No 16. (Concerning the Respondents Request for Reconsideration of 30 June 2016)

International Centre for Settlement of Investment Disputes Washington, D.C. In the proceedings between

ANSWER TO THE REQUEST FOR ARBITRATION [NOTE: OR ANSWER TO THE REQUEST FOR ARBITRATION AND COUNTERCLAIMS, IF

Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR):

AGREEMENT BETWEEN CANADA AND FOR THE PROMOTION AND PROTECTION OF INVESTMENTS

INTRA-E.U. BIT ARBITRATIONS DECLARED INCOMPATIBLE WITH EU LAW JUDGMENT RENDERED IN C-284/16 - SLOWAKISCHE REPUBLIK V ACHMEA BV.

INTERNATIONAL COURT OF ARBITRATION OF THE INTERNATIONAL CHAMBER OF COMMERCE. ICC Case No /AC PETER EXPLOSIVE. (Claimant) REPUBLIC OF OCEANIA

Treaty Series No. 37 (1997) Agreement. for the Promotion and Protection of Investments with Protocol. Santiago, 8 January 1996

Agreement on encouragement and reciprocal protection of investments between the Republic of Zimbabwe and the Kingdom of the Netherlands.

CASES. Cambridge University Press ICSID Reports, Volume 13 Edited by Karen Lee Excerpt More information

1 Came into force on 30 April 1982 by signature, in accordance with article 12. Vol. 1294,

MEMORIAL FOR THE CLAIMANT

PROCES-VERBAL OF EXCHANGE OF INSTRUMENTS OF RATIFICATION

No Colombia and Peru

Agreement on Encouragement and Reciprocal Protection of Investments between the Republic of Croatia and the Kingdom of the Netherlands.

AND CHAPTER ELEVEN OF THE NORTH AMERICAN FREE TRADE AGREEMENT ( NAFTA ) PROCEDURAL ORDER ON TWO DISPUTED ISSUES DATED 6 FEBRUARY 2015 (English Text)

INTERNATIONAL CHAMBER OF COMMERCE. ICC Arbitration Case 28000/AC PETER EXPLOSIVE

AGREEMENT BETWEEN THE SLOVAK REPUBLIC AND THE ISLAMIC REPUBLIC OF IRAN FOR THE PROMOTION AND RECIPROCAL PROTECTION OF INVESTMENTS

,*^^ (3) "forces" means :

The Government of the Kingdom of the Netherlands and the Government of the People's Republic of Bangladesh, Article 1

Treaty Series No. 37 (2003) Agreement. between the United Kingdom of Great Britain and Northern Ireland and Bosnia and Herzegovina

Limited CHAPTER 2 INVESTMENT PROTECTION ARTICLE 2.1. Scope. 1. This Chapter applies to: covered investment, and

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES. Eco Oro Minerals Corp. Republic of Colombia. (ICSID Case No.

Agreeing that a stable framework for investment will maximize effective utilization of economic resources and improve living standards;

Dispute Resolution Around the World. Azerbaijan

ARBITRAL AWARD FIBA ARBITRAL TRIBUNAL (FAT)

Article 1. v. rights granted under public law or under contract, including rights to prospect, explore, extract and win natural resources.

INTERNATIONAL CENTRE FOR THE SETTLEMENT OF INVESTMENT DISPUTES IN THE PROCEEDING BETWEEN ATA CONSTRUCTION, INDUSTRIAL AND TRADING COMPANY (CLAIMANT)

INTERNATIONAL CHAMBER OF COMMERCE UNDER THE ICC RULES OF ARBITRATION 2012 ADMINISTERED BY THE ICC INTERNATIONAL COURT OF ARBITRATION PETER EXPLOSIVE

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES. RAILROAD DEVELOPMENT CORPORATION Claimant. REPUBLIC OF GUATEMALA Respondent

ARBITRATION INSTITUTE OF THE STOCKHOLM CHAMBER OF COMMERCE

Agreement on encouragement and reciprocal protection of investments between the Kingdom of the Netherlands and the Federal Republic of Nigeria

Treaty Series No. 47 (2003) Agreement

International Court of Arbitration of the International Chamber of Commerce IN THE PROCEEDING BETWEEN. Peter Explosive (Claimant)

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES. Unión Fenosa Gas, S.A. Arab Republic of Egypt. (ICSID Case No.

Convention on the Settlement by Arbitration of Civil Law Disputes Resulting from Relations of Economic and Scientific-Technical Cooperation

The Government of the Repub1ic of India and the Government of the State of Qatar, (hereinafter referred to as the Contracting Parties );

Enforcement & Dispute Resolution Outline. Cecilia M. Bailliet

PRINCIPLES OF EUROPEAN CONTRACT LAW

Vanuatu No. 1 (2004) Agreement

Award Name and Date: WNC Factoring Ltd v. The Czech Republic (PCA Case No ) Award - 22 February 2017

Treaty Series No. 38 (1987)

Marvin Roy Feldman Karpa. United Mexican States. (ICSID Case No. ARB(AF)/99/1) Interim Decision on. Preliminary Jurisdictional Issues

The Government of the Republic of Korea, on the one hand, and the Government of the

Dispute Resolution in Romania - Before and After Accession to the European Union

Practical Experiences Re Competition Law and Arbitration. 13 November 2009

Transcription:

INTERNATIONAL COURT OF ARBITRATION CASE No. 28000/AC PETER EXPLOSIVE v. REPUBLIC OF OCEANIA (CLAIMANT) (RESPONDENT) MEMORIAL FOR THE CLAIMANT

List of Abbreviations: 1. ICSID: International Center for Settlement of Investment Disputes 2. BIT: Bilateral Investment Treaty 3. UNCITRAL: United Nations Commission on International Trade Law 4. ICC: International Chamber of Commerce 5. FDI: Foreign Direct Investment 6. MFN: Most Favoured Nation 7. EO: Executive Order 8. VCLT: Vienna Convention on the Law of Treaties LIST OF AUTHORITIES 1. CME V Zcech Republic 2. Re Secession of Quebec 3. Re Secession of Kosovo 4. Bank Mellat v Council of Europe 5. Suez v Argentina 6. Siemens v Argentina 7. Maffezzini v Spain

STATEMENT OF FACTS The case at hand is an investment claim. The Republic of Oceania concluded bilateral investment treaties for the Promotion and Reciprocal Protection of investments with the Republic of Euroasia and the Republic of Eastasia. Peter Explosive, a resident of Fairyland then in Eastasia but now in Euroasia made an investment in the Republic of Oceania. He acquired a company known as Rocket Bombs which was then going under and decrepit. The deteriorating situation of the company took a toll on the local community since a large number of the residents of Valhalla were employed there. However, the claimant managed to conclude several contracts for arms production, the most important contract being with the Ministry of Defence of Euroasia. The company prospered and became one of the largest arms producing company in Oceania. While continuing with business, the residents of Fairyland held a referendum on 1 st Nov 2013 on the secession of Fairyland from Eastasia and annexation to Euroasia. As most of the residents of Fairyland are originally Euroasian and did not identify with Eastasia, they voted in favour of the secession. This was a peaceful referendum that demonstrated the Resident s rights to selfdetermination. This referendum divided the international community into two fronts, one that was in favour of the secession and one that considered that it was unlawful. The Republic of Oceania did not acknowledge this secession and issued an Executive Order on 1 st May 2014 blocking property of persons contributing to the situation in Eastasia. It introduced sanctions which included a ban on business operations with such persons, suspended existing contracts and made future contracts illegal. These sanctions applied to Rocket Bombs and led to the decrease of the value of its shares. The claimant could neither conduct the business nor sell it. This was a very unjust order to the claimant who had been legally in operation for 16 years. The company improved the standards of living of the residents of Valhalla and made a massive contribution to

the economy of Oceania. This is because of several other contracts concluded with several other companies in Oceania. It is for that reason the claimant is seeking protection under the Euroasia BIT against expropriation and to seek compensation for losses incurred as a result of the Executive Order. 1. The Tribunal has jurisdiction to decide the Present Dispute. A. Claimants claims are treaty claims over which the tribunal has jurisdiction The tribunal can decide on cases which include a breach of treaty. I. The dispute is as a result of a violation of a treaty between the Republic of Oceania and the Republic of Euroasia for the Promotion and Reciprocal Protection of investments ( the Euroasia BIT ). The tribunal has jurisdiction to hear a claim when the allegations raised by the claimant, if established, are capable of constituting a breach of the provisions of the BIT. The Respondent violated Article 2 of the BIT by (1) not protecting the investment of the claimant and (2) failing to provide claimant with due process. II. The Euroasia BIT allows the Tribunal s Jurisdiction. The Euroasia BIT grants exclusive jurisdiction to the tribunal to hear and determine matters on application of either party. 1 This follows failure between the two contracting states to amicably settle the matter. 2 The provisions of the Euroasia BIT preclude the application of treatment to investors that is less 1 Article 8 Euroasia BIT 2 Ibid.

favourable than that afforded to third party states 3. The Eastasia BIT does not have the pre-arbitral step of bringing a dispute before the judicial authorities of Oceania 4, the Euroasia BIT therefore allows the application of these provisions. The Executive Order precluded any amicable solution to the dispute because it purports to deny any right or benefit enforceable at law by anyone against the Republic of Oceania 5. If according to the Executive Order no legal right can ensue from its provisions then there can be no basis for any amicable solution to be negotiated, it effectively extinguishes the standing of the claimant in that respect. III. The UNCITRAL Model Law on International Commercial Arbitration states that the arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. 6 IV. The ICC Arbitration rules also provide the tribunal with powers to determine the issue of jurisdiction. 7 The right to self-determination by the people of Fairyland. The referendum conducted by the people of Fairyland was legitimate as provided for in the constitution of Eastasia. The referendum was a valid and democratic means for the Fairyland people to re-unite with their original homeland Euroasia. The advisory opinion in the Accordance with International Law on the Unilateral Declaration of Independence in respect of Kosovo concluded that international law does not prohibit declarations of 3 Article 3 (1) Euroasia BIT 4 Article 8 Eastasia BIT 5 Section 9 Executive Order 6 Article 16. 7 Article 6(3).

independence. In this Kosovo case, 8 the Kosovar Albanians are an ethnically homogenous enclave, physically separate and ethnically different from the Serbs. Thomas Franck, one of the five international law experts asked by the Canadian government to consider certain issues regarding a hypothesized secession of Quebec, wrote that: It cannot seriously be argued today that international law prohibits secession. It cannot seriously be denied that international law permits secession. There is a privilege of secession recognized in international law and the law imposes no duty on any people not to secede. 9 While international law does not foreclose on the possibility of secession, it does provide a framework within which certain secessions are favored or disfavored, depending on the facts. In the case of Re Cession of Quebec, Faced with the question of whether Québec could make a unilateral declaration of independence, the Supreme Court declared unanimously in this reference (1998) that such a declaration would be unconstitutional both by Canadian constitutional law and international law. A constitutional amendment would, however, make such a secession possible. The Court added that Québec could hold a referendum of secession and, given a clear question and a clear majority in favour of secession, the rest of Canada, in such a case, would be constitutionally obliged to negotiate the terms by which Québec would accede to independence, and that such a secession must conform to important basic principles, namely, the rule of law, federalism, the protection of minorities and democracy. Although there is no right, under the Constitution or at international law, to unilateral secession, the possibility of an unconstitutional declaration of secession leading to a de facto secession is not ruled out. The ultimate success of such a secession would be dependent on recognition by the 8 https://www.asil.org 9 Thomas Franck, as quoted in SUZANNE LALONDE, DETERMINING BOUNDARIES IN A CONFLICTED WORLD: THE ROLE OF UIT POSSIDETIS 209 (2002)

international community, which is likely to consider the legality and legitimacy of secession having regard to, amongst other facts, the conduct of Quebec and Canada, in determining whether to grant or withhold recognition. Even if granted, such recognition would not, however, provide any retroactive justification for the act of secession, either under the Constitution of Canada or at international law. The Claimant is an investor pursuant to Article 1(2) of the Euroasia BIT. Article 1(2) states that: The term investor shall mean any natural or legal person of one Contracting Party who invests in the territory of the other Contracting Party, and for the purpose of this definition: (a) the term natural person shall mean any natural person having the nationality of either Contracting Party in accordance with its laws; (b) the term legal person shall mean, with respect to either Contracting Party, any entity incorporated or constituted in accordance with, and recognized as legal person by its laws, having the seat in the territory of that Contracting Party. The claimant is indeed a national of Euroasia as demonstrated above by the lawful secession and subsequent issuance of an ID and passport of Eurosia. 10 He then proceeded to make an investment in the other contracting party which is the Republic of Oceania. 2. The Respondent made it futile for the Claimant to invoke the Pre-arbitral steps provided for in Article 9 of the Euroasia BIT. 10 FDI Moot Problem Page 56 paragraph 4.

The respondent actions violated the provisions of article 2 of the Euroasia BIT by issuing an executive order that imposed sanctions on investors that exposed the claimant to the circumstances that led to the losses he incurred. Respondent actions deprived the claimant an opportunity to invoke municipal laws as it was stated as follows in that particular executive of 1 st May 2014; This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law by any party against the republic of Oceania. 11 Peter Explosive notified the Oceanian Ministry of Foreign Affairs (with the copies to the Ministry of Finance, Ministry of Defence and Ministry of Environment) of his dispute with the Republic of Oceania on 23 February 2015. It complied with the requirements of Art. 8 (1) and (2) of the Eastasia BIT. 12 In any case, as per the Procedural Order No. 3, Claims directly brought under international treaties may not be adjudicated by the Oceanian national courts neither in accordance with the international law nor in accordance with the Oceanian national law. 13 The Oceanian Constitutional Tribunal may set aside any legal act, including an executive order, if it finds it unconstitutional. However, given the Tribunal s historic deference to the executive branch in the conduct of foreign policy, it seems rather unlikely that it would set aside the 11 Section 9 12 Procedural Order No. 3 FDI Moot Problem page 60 paragraph 4 13 Procedural Order No. 3 FDI Moot Problem page 60 paragraph 5

Executive Order of 1 May 2014. Even if it did, it would be an extremely lengthy process, taking up to 3 or 4 years. 14 In Siemens v Argentina, it was held that where one party refuses to negotiate a dispute, the other party can take the matter to the arbitral tribunal. Similarly in this cases, the Executive order demonstrated the respondent s unwillingness to negotiate. In the case of Mafezzini v Spain, it was held that it was not a prerequisite to exhaust all local remedies. A party could bring a claim to the tribunal directly. The claimant had in fact attempted to solve the dispute amicably by notifying the Oceanian Ministry of Foreign Affairs (with copies to the Ministry of Finance, Ministry of Defence and Ministry of Environmental Protection) of his dispute with Oceania and of the Claimant s intention to initiate arbitral proceedings against the Respondent if Oceania fails to negotiate with the Claimant. As of the date of filing of the Request for Arbitration, Oceania has not responded. 15 It is therefore the claimant s submission that if the first step provided for in Article 9 (1) of the Euroasia BIT had failed, the second step would have been equally futile. Article 9 states that: Article 9 Settlement of Disputes between Investors and Contracting Parties 1. Any dispute regarding an investment between an investor of one of the Contracting Parties and the other Party, arising out of or relating to this Agreement, shall, to the extent possible, be settled in an amicable consultations between the parties to the dispute. 2. If the dispute cannot be settled amicably, it may be submitted to the competent judicial or administrative courts of the Contracting Party in whose territory the investment is made. 14 Procedural Order No. 3 FDI Moot Problem page 60 paragraph 6 15 Page 5 FDI Moot Problem

It is therefore the claimant s submission that article 3 of the Euroasia BIT should be interpreted to include the provisions of article 8 of the Eastasia BIT. Article 3 is the Most Favoured Nation clause and it states: Article 3 National Treatment and Most-Favoured Nation Provisions 1. Each Contracting Party shall, within its own territory, accord to investments made by investors of the other Contracting Party, to the income and activities related to such investments and to such other investment matters regulated by this Agreement, a treatment that is no less favourable than that accorded to its own investors or investors from thirdparty countries. The interpretation the article and in particular the words other investment matters should be wide enough to include procedure for settlement of disputes. Application of that article should therefore accord the claimant a right to bring the matter directly to the tribunal without invoking the pre-arbitral steps. 3. The respondent expropriated the claimant s investment and contributed to the damage suffered. This is in contravention of the Euroasia BIT 16. The Executive Order prohibited other parties already contracting with the claimant from fulfilling their contractual obligations. 17 This had the effect of frustrating contracts the claimant had negotiated with parties other than the Republic of Euroasia because the claimant had several other business dealings not contributing to the situation in Eastasia which should have been the scope of the sanctions ideally. Art 4. Euroasian BIT states that: 16 Article 4 (1) 17 Section 1

1. Investments by investors of either Contracting Party may not directly or indirectly be expropriated, nationalized or subject to any other measure the effects of which would be tantamount to expropriation or nationalization in the territory of the other Contracting Party except for the public purpose. The expropriation shall be carried out under due process of law, on a non-discriminatory basis and shall be accompanied by provisions for the payment of prompt, adequate and effective compensation. Such compensation must be equivalent to the value of the expropriated investment immediately before the date on which the actual or threatened expropriation, nationalization or other measure became publicly known. 2. Investors of either Contracting Party whose investments suffer losses in the territory of the other Contracting Party owing to war or other armed conflict, revolution, a state of national emergency, or revolt, shall be accorded treatment no less favourable by such other Contracting Party than that State accords to its own investors as regards restitution, indemnification, compensation or other valuable consideration. Such payment must be freely transferable. The respondent therefore expropriated claimant s investment by the implementation of the sanctions and introduction of Executive Order of 1 st May 2014. This can be illustrated by the case of Suez v Argentina. In this case Argentina was part of 3 BITS with France, Spain and UK. Suez was protected by the France-Argentina BIT. The Claimants made investments for water distribution in Buenos Aires. Beginning 2000 Argentina experienced economic difficulties and the government too emergency measures to cope with the crisis. The claimant hence failed to get reasonable returns for the investments. After going to court, the court refused to terminate the tariffs and the government contracted another water and sewage company despite the fact that the claimant had been in operation for 13 years. In 2003, Suez took the application to ICSID.

Holding Article 26 Pacta de Servanda of the VCLT, Argentina was found to have breached the BIT. In CME V Czech Republic the Czech Republic violated their obligation under the investment treaty in terms of not providing fair and equitable treatment as per the USA-CZ treaty and issued tariffs interfering with the operation, management, use, enjoyment, maintainance and disposal of the claimant s investment. Czech Republic was obliged to pay damages to the Claimant as a consequence of treaty violation. In the case of Bank Mellat v Council of Europe, it was stated that where one party was being targeted the other party was under an obligation to state how. The Executive order applied to property of persons contributing to the situation in Euroasia. The republic of Oceania is therefore under an obligation to show how Rocket Bombs was contributing to the situation in Eastasia. The claimant s company was merely fulfilling its contractual obligations of supplying arms to Euroasia. The respondent therefore indirectly expropriated the claimant s investment by imposing sanctions. The Executive order as Section 1 prevented the claimant from carrying out his contractual obligations and made future contracts futile. 18 Persons contracting with him or supplying materials were also prohibited from contracting with the Company. This meant that Peter Explosive could no longer transact and this meant he incurred losses and the value of the shares in his Company went down. He lost his investment and he was indeed specifically targeted by the Executive order. All companies that operated in the targeted sectors were subjected to the sanctions stipulated in the Executive Order of 1 May 2014. Arms Production 18 Page 52 FDI Moot Problem.

was a targeted sector and Rocket Bombs was the only company involved in arms trade with the Republic of Euroasia. 19 The Republic of Oceania hence indirectly expropriated the Claimant s Investment. PRAYERS FOR RELIEF Claimant respectfully requests the Tribunal to: a) Dismiss jurisdictional challenges advanced by the Respondent. b) Find that the Respondent s measures violated their obligations under Article 2 of the BIT. c) Find that the respondent expropriated claimant s investment by the implementation of the sanctions and introduction of Executive Order of 1 st May 2014. d) Respondent contributed to the damage suffered by the claimant and therefore the tribunal should award the claimant not less than 120,000,000 USD with interest as of the date of the issuance of the award. 19 Page 56 FDI moot problem.