Title: State liability for the conduct of its entities in international investment arbitration

Authors: Assaduzzaman

Addresses: University of Southampton, School of Law, Room No. 3029, Building 4, University Road, Southampton, SO17 1BJ, UK

Abstract: Often states raise separate legal personality of state entities as a defence against the claim brought by the foreign investors for the liquidated debt of state entities in investment arbitration. These entities are created by the state which may have separate legal personality but they lack absolute autonomy in relation to substantial structural and functional government control. This paper examines the fundamental relationship of direct and indirect liability of states for the breach of state entities. It is necessary to adopt a uniform set of rules for investment arbitration in addressing issues relating to state liability for the conduct of state entities.

Keywords: state entities; state liability; international arbitration; investment arbitration; foreign debt; legal personality; legal claims; states; foreign investors; liquidated debt; absolute autonomy; structural control; functional control; government control; fundamental relationships; direct liability; indirect liability; breaches; uniform rules; entity conduct; private law.

DOI: 10.1504/IJPL.2012.047318

International Journal of Private Law, 2012 Vol.5 No.3, pp.276 - 292

Published online: 20 Sep 2014 *

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