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Investor Presentaiton

104 INVESTOR-STATE DISPUTE SETTLEMENT: A SEQUEL that all claims are manifestly without legal merit, it shall render an award to that effect." (Emphasis added). The respondent State's objection does not have to relate to the jurisdiction of the tribunal. However, the preliminary objection procedure can also be used to expedite an objection to the jurisdiction of the tribunal. As one tribunal noted: "There exist no objective reasons why the intent not to burden the parties with a possibly long and costly proceeding when dealing with such unmeritorious claims should be limited to an evaluation of the merits of the case and should not also englobe an examination of the jurisdictional basis on which the tribunal's powers to decide the case rest." 3,100 The word "manifestly" in the phrase "manifestly without legal merit” has been interpreted that setting a high standard of proof. As stated by the tribunal in Trans-Global Petroleum v. Jordan, "an award under Rule 41(5) can only apply to a clear and obvious case, i.e. [...] patently unmeritorious claims'."101 These revisions to the ICSID Rules mean that States can make frivolous-claims objections in proceedings under the ICSID Convention or under the aegis of the Additional Facility Rules even if the operative investment treaty itself does not contain a specific provision authorizing the expedited preliminary procedure. Neither the 1976 nor the 2010 UNCITRAL Rules contain a similar mechanism. 100 Brandes v. Venezuela, ICSID Case No. ARB/08/3, Decision on the Respondent's Objection under Rule 41(5) of the ICSID Arbitration Rules, 2 February 2009, para. 52. See also Globex Trading v. Ukraine, ICSID Case No. ARB/09/11, Award, 1 December 2010, para. 30. 101 Trans-Global Petroleum, Inc. v. Jordan, ICSID Case No. ARB/07/25, The Tribunal's Decision on the Respondent's Objection under Rule 41(5) of the ICSID Arbitration Rules, 12 May 2008, para. 92. UNCTAD Series on International Investment Agreements II
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