Browsing by Author "Poutala, Tero"

This thesis explores two main mechanisms for the recognition and enforcement of investment awards: the ICSID Convention and the New York Convention. Ultimately, the thesis provides a comparison between these two systems. For this purpose, international and domestic rules applicable to the recognition and enforcement of investment awards in Finland are collated and analyzed. The task is approached through legal dogmatic inquiry. Investment disputes are a contemporary phenomenon and have gained a lot of attention in the past few years. An investment arbitration award is a typical outcome in a case of non-amicable dispute resolution. Around one third of the investment awards have resulted in pecuniary obligations. Although the compliance rate with investment awards is ordinarily high, there are situations when measures of constraint are needed. The primary means for seeking the satisfaction of the award is through enforcement, which is a measure of constraint to execute defaulted obligations. Enforcement is typically pursued in those jurisdictions, where the debtor has assets subject to attachment. The outcome of this study indicates that the recognition and enforcement of investment awards is not a routine operation in Finland. The study reveals that enforcement processes vary significantly depending on whether the investment award is an ICSID award or a non-ICSID award. Most significantly, the ICSID system provides an automatic recognition and enforcement system for pecuniary obligations, while non-ICSID awards are subject to limited court review under the New York system. In addition, the study indicates that the enforcement of an investment award has not been considered in the preparation of the Finnish Enforcement Code, particularly in relation to the ICSID Convention. Incorporating ICSID awards into the Finnish enforcement system raises legal problems in terms of systemic integration. Although it is concluded that the current legal solutions meet the minimum level of international obligations set out in the ICSID Convention and the New York Convention, the thesis provides a number of recommendations for further improvements. The thesis provides a solution on how to amend the existing Finnish legislation with due regard to international rules concerning the recognition and enforcement of investment awards, ICSID awards in particular. Amendments to the laws of enforcement and state immunity are suggested. In addition, the study also recommends that investment cases should be centralized to a high court, such as the Helsinki Court of Appeal. It is likely that this solution would increase predictability and legal certainty in the recognition and enforcement of investment awards in Finland.