Obtaining Damages for Corporate Human Rights Violations in Investment Arbitration Through a Procedural Lens

07 October 2021, Version 1
This content is an early or alternative research output and has not been peer-reviewed by Cambridge University Press at the time of posting.

Abstract

Over the past decades, transnational corporations have come under increasing public scrutiny for their involvement in human rights abuses, particularly in developing countries. One may think of violent acts against local communities, slave labor, and grand scale environmental pollution. International investment law protects and safeguards the rights of foreign investors but falls short of holding them accountable to societies where they operate. Recently, a few arbitral tribunals have grappled with the question of whether corporations can be held accountable for illegalities that constitute human rights violations inflicted upon the host state or its people. This article discusses the arbitral treatment of corporate human rights violations by investment tribunals in three treaty-based cases: Copper Mesa v. Ecuador, Burlington v. Ecuador and Urbaser v. Argentina and draws on recent scholarly work on causation in investor-state arbitration to evaluate their approaches.

Keywords

International Law
International Investment Law
International Economic Law
Investment Arbitration
ISDS
investor-state dispute settlement
ICSID
Local communities
counterclaims
corporate liability
human rights
post-establishment illegality
illegality defence
host state liability
Latin American countries

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