The International Centre for Settlement of Investment Disputes (ICSID) is a specialized body established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States in 1965. It provides international companies with a forum for resolving disputes between them and foreign governments, thereby protecting their investments abroad. If you are considering filing an action at ICSID, here are the steps you need to take.
Step 1: Understand Your Rights Under ICSID
The first step in filing an action at ICSID is understanding your rights under the applicable investment treaty or other agreement that allows you to bring a claim against a foreign government. While some agreements provide broad protection for investors, others may be more limited in scope. It is important to research and understand your rights before taking any legal action. This includes an analysis of the proper treaty to submit a claim.
Step 2: Submit a Request for Arbitration
Once you have determined that you have valid grounds to file an action, the next step is submitting your request for arbitration to ICSID. Make the request in writing and provide all relevant information about the dispute, including details of the investor’s claim and the applicable investment treaty or other agreement that governs it. Furthermore, before filing a request for arbitration with ICSID, both parties must provide written consent. See World Bank Group – International Development, Poverty, & Sustainability
Step 3: Choose Arbitrators
After ICSID accepts the filed request, you must select arbitrators who will preside over your case. You can choose from one of three panels of arbitrators maintained by ICSID or select one from outside these panels if both parties agree to it. The selection of arbitrator is crucial because they will be responsible for determining the amount of compensation to be awarded to each party if necessary. Up to three arbitrators can preside over the panel.
Step 4: Submit Documentation
The final step in filing an action at ICSID is providing all relevant documents and evidence related to your claim including any contracts, agreements, correspondence, or other materials that can help support your position. Submitting this documentation helps ensure that there are no delays throughout the arbitration process and increases the chances of success for both parties involved.
Filing an action at ICSID isn’t easy but it can provide international corporations with a safe platform where they can resolve disputes with foreign governments without fear of unfair treatment or bias rulings against them. By following these four steps—understanding your rights, submitting a request for arbitration, choosing an arbitrator, and submitting documentation—you can ensure that your case runs smoothly and successfully through the ICSID system. With the right preparation and guidance, investors can protect their investments overseas while also ensuring fair treatment from foreign governments in any dispute resolution proceedings they may face.
These types of proceedings are well-known to our team. Please visit International Arbitration Attorney – Transnational Matters