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Investor’s Legitimate Expectations v State’s Regulatory Power - In Spanish Renewable Energy Saga Context

Maglaperidze, Ana LU (2023) HARN63 20231
Department of Business Law
Abstract
International investment law affords treaty protection mechanisms to investors against host states’ misconduct. One such tool available for investors is the fair and equitable treatment standard and its dominant element – legitimate expectations. Host states are under an obligation not to frustrate investors’ legitimate and objective expectations. Such a duty impairs states from free and flexible exercise of their sovereign right to regulate and change legislative framework in public interests. Regulatory action from a host state is often alleged to be frustrating investor’s legitimate expectations of regulatory stability. On the other hand, states have undertaken obligations towards people and are liable to fulfil their sovereign... (More)
International investment law affords treaty protection mechanisms to investors against host states’ misconduct. One such tool available for investors is the fair and equitable treatment standard and its dominant element – legitimate expectations. Host states are under an obligation not to frustrate investors’ legitimate and objective expectations. Such a duty impairs states from free and flexible exercise of their sovereign right to regulate and change legislative framework in public interests. Regulatory action from a host state is often alleged to be frustrating investor’s legitimate expectations of regulatory stability. On the other hand, states have undertaken obligations towards people and are liable to fulfil their sovereign obligations. Exercise of the right to regulate overlaps investor’s legitimate expectation of stability and this is when conflict between public and private interests arises. Addressing the conflict and balancing these two opposing interests are the main concern and task of tribunals. The latest development of case law illustrates that the balancing exercise is conducted through the proportionality principle which entails weighing both interests against one another and finding a balance between them. (Less)
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author
Maglaperidze, Ana LU
supervisor
organization
course
HARN63 20231
year
type
H1 - Master's Degree (One Year)
subject
keywords
international investment law, fair and equitable treatment, legitimate expectations, special representations, due diligence, state’s right to regulate, regulatory objectives, Spanish Renewable Energy Saga, economic crisis, national security, absolute stability, relative stability, balancing exercise, proportionality principle
language
English
id
9119484
date added to LUP
2023-06-15 14:16:08
date last changed
2023-06-15 14:16:08
@misc{9119484,
  abstract     = {{International investment law affords treaty protection mechanisms to investors against host states’ misconduct. One such tool available for investors is the fair and equitable treatment standard and its dominant element – legitimate expectations. Host states are under an obligation not to frustrate investors’ legitimate and objective expectations. Such a duty impairs states from free and flexible exercise of their sovereign right to regulate and change legislative framework in public interests. Regulatory action from a host state is often alleged to be frustrating investor’s legitimate expectations of regulatory stability. On the other hand, states have undertaken obligations towards people and are liable to fulfil their sovereign obligations. Exercise of the right to regulate overlaps investor’s legitimate expectation of stability and this is when conflict between public and private interests arises. Addressing the conflict and balancing these two opposing interests are the main concern and task of tribunals. The latest development of case law illustrates that the balancing exercise is conducted through the proportionality principle which entails weighing both interests against one another and finding a balance between them.}},
  author       = {{Maglaperidze, Ana}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Investor’s Legitimate Expectations v State’s Regulatory Power - In Spanish Renewable Energy Saga Context}},
  year         = {{2023}},
}