Oxford University Press

Tables, Graphs, and Illustrations . . ix
Preface . . xi

1. The New Generation of Political Advocacy Groups . . 3
2. The MoveOn Effect: Disruptive Innovation in the Interest Group Ecology of American Politics . . 22
3. Political Blogs as Political Associations . . 52
4. "Online Tools for Offline Action" Neo-Federated Political Associations . . 77
5. Netroots as Networks—Building Progressive Infrastructure . . 101
6. Don't Think of an Online Elephant . . 125
7. Innovation Edges, Advocacy Inflation, and Sedimentary Organizations . . 156

Research Appendix—Method Notes for Studying Internet-Mediated Organizations . . 173
Notes . . 193
Bibliography . . 211
Index . . 227

List of Abbreviations . . xvii
Table of Cases . . xix
Table of Statutory Provisions . . xxxix

1. English Law and Practice . . 1
A. Introduction . . 1.01
B. The Basis of English Law . . 1.03
C. Common Law and Equity . . 1.32
D. Common Law and Civil Law . . 1.40
E. Contract and Tort . . 1.43
F. The English Law of Contract . . 1.47
G. Freedom of Contract and Binding Contract . . 1.86
H. Companies and Contracts . . 1.109
I. Debt and Damages . . 1.114
J. The Meaning of Indemnity . . 1.120

2. Petroleum Contracts . . 34
A. Introduction . . 2.01
B. The Petroleum Sector . . 2.03
C. Upstream Contracts . . 2.14
D. Midstream Contracts . . 2.37
E. Downstream Contracts . . 2.45
F. General Contracts . . 2.57

3. Preliminary Contracts . . 50
A. Introduction . . 3.01
B. Preliminary Contracts . . 3.06
C. The Obligation for Further Negotiation . . 3.23
D. Independent Contracts . . 3.66
E. Option Contracts . . 3.85

4. Conditional Contracts . . 69
A. Introduction . . 4.01
B. Defining Conditions under English Law . . 4.03
C. How Conditions Precedent Work . . 4.18
D. Conditionality in Petroleum Contracts . . 4.48

5. Joint Ventures . . 83
A. Introduction . . 5.01
B. Joint Venture Definition and Rationale . . 5.06
C. Incorporated and Unincorporated Joint Ventures . . 5.33
D. Partnerships . . 5.63
E. Joint Operating Agreements . . 5.80
F. Partnerships and Joint Operating Agreements Contrasted . . 5.112

6. Third Parties and Security Interests . . 112
A. Introduction . . 6.01
B. Vicarious Performance . . 6.08
C. Third Parties and Privity of Contract . . 6.20
D. Agency and Attorneys . . 6.37
E. Security Interests . . 6.71

7. Equitable Rights and Remedies . . 132
A. Introduction . . 7.01
B. The Role of Equity . . 7.06
C. Trusts . . 7.22
D. Fiduciary Duties . . 7.42
E. Specific Enforcement . . 7.98
F. Other Equitable Remedies . . 7.128

8. Contracts for Sale and Supply . . 161
A. Introduction . . 8.01
B. Commingled Petroleum . . 8.09
C. The Sale of Goods Act 1979 . . 8.23
D. Transfers of Title, Risk, and Custody . . 8.54
E. Implied Terms . . 8.74
F. Take or Pay . . 8.95
G. Retention of Title . . 8.132
H. Contracts of Bailment . . 8.149

9. Collateral Support . . 191
A. Introduction . . 9.01
B. Guarantees . . 9.07
C. Demand Guarantees . . 9.77
D. Documentary Credits . . 9.90
E. Letters of Comfort . . 9.104
F. Decommissioning Security . . 9.132
G. Practical Aspects of Collateral Support . . 9.140

10. Impossibility and Impracticability of Performance . . 226
A. Introduction . . 10.01
B. Absolute Contracts . . 10.08
C. The Doctrine of Frustration . . 10.19
D. The Doctrine of Force Majeure . . 10.54
E. Force Majeure and Frustration Reconciled . . 10.122
F. Hardship and Material Adverse Change . . 10.129
G. Impossibility and Impracticability in Petroleum Contracts . . 10.153

11. Damages for Breach of Contract . . 260
A. Introduction . . 11.01
B. The Basis of Damages . . 11.06
C. Assessing Damages under English Law . . 11.18
D. Assessing Damages in Detail . . 11.53
E. Restitutionary Remedies . . 11.78
F. Liquidated Damages and Penalties . . 11.85
G. Particular Damages Issues . . 11.118

12. Termination . . 292
A. Introduction . . 12.01
B. Discharge by Performance . . 12.04
C. Termination by Agreement . . 12.16
D. Discharge by Breach . . 12.26
E. Contractual Termination . . 12.56
F. Discharge by Operation of Law . . 12.85
G. Consequences of Termination . . 12.104
H. Termination in Petroleum Contracts . . 12.118

13. Liability Allocation . . 322
A. Introduction . . 13.01
B. Theories of Loss and Liability . . 13.06
C. Concurrent Liability in Contract and Tort . . 13.33
D. Consequential Loss . . 13.44
E. Liability Caps . . 13.58
F. Exclusion Clauses . . 13.64
G. Wilful Misconduct and Gross Negligence . . 13.90
H. Insurance . . 13.104
I. Operator Liability . . 13.118
J. Other Recoveries . . 13.133

14. Transfers of Interests . . 351
A. Introduction . . 14.01
B. Transfers of Contractual Rights by Law . . 14.05
C. Transfers of Contractual Obligations . . 14.22
D. Transfers of Interests Regulated by Contract . . 14.35
E. Financing Transfers . . 14.53
F. Pre-emption Rights . . 14.57
G. Change of Control . . 14.103
H. Farm Outs and Earn Outs . . 14.111

15. Law and Disputes . . 379
A. Introduction . . 15.01
B. Governing Law and Jurisdiction . . 15.08
C. Options for Dispute Resolution . . 15.29
D. Dispute Resolution Mechanisms . . 15.50
E. Public International Law Remedies . . 15.81
F. Sovereign Immunity . . 15.89
G. Industry Custom and Practice . . 15.97
H. Price Reviews . . 15.104

16. Miscellaneous . . 405
A. Introduction . . 16.01
B. Amendment . . 16.03
C. Confidentiality . . 16.09
D. Entire Agreement . . 16.27
E. Joint and Several Liability . . 16.38
F. Lock-out and Lock-in . . 16.49
G. Reasonable and Best Endeavours . . 16.54
H. Set-off . . 16.78
I. Severability . . 16.87
J. Time of the Essence . . 16.99
K. Warranties and Representations . . 16.115

Index . . 437

List of ICSID Cases . . xv
Table of Cases . . xxxv
Table of Treaties . . xliii
List of Abbreviations . . li

1. Introduction . . 1
I. The International Bank for Reconstruction and Development . . 2
II. The International Finance Corporation, International Development Association and Multilateral Investment Guarantee Agency . . 5
III. The International Centre for Settlement of Investment Disputes . . 8

2. Origins of the Convention . . 11
I. Proposed multilateral approaches to the promotion of private foreign investment . . 12
  A. Investment insurance . . 12
  B. A code of conduct . . 13
  C. An arbitral body for investment disputes . . 16
II. The World Bank considers the proposals . . 18
  A. The Bank's wrk on an IIIA . . 18
  B. The proposed code of conduct . . 19
  C. The dispute settlement approach . . 21
III. The role of "Black's Bank" in the settlement of investment disputes . . 21
IV. The Bank begins to work on the initiative . . 24

3. Broches's "Working Paper" . . 27
I. The Working Paper . . 30
  A. Provisions on the establishment and organization of the Center . . 30
  B. Provisions on the jurisdiction of the Center . . 34
  C. Provisions on conciliation and arbitration . . 35
II. The initial meetings of the Committee of the Whole . . 37

4. The Preliminary Draft of the Convention . . 43
I. The Preliminary Draft . . 44
  A. Provisions on the establishment and organization of the Center . . 44
  B. Provisions on the jurisdiction of the Center . . 46
  C. Provisions on conciliation and arbitration . . 47
  D. Other provisions . . 49
II. Sources tor the Preliminary Draft . . 51
III. The regional consultative meetings . . 53
  A. Discussions regarding the establishment and organization of the Center . . 56
  B. Discussions regarding the jurisdiction of the Center . . 57
  C. Discussions regarding conciliation and arbitration . . 60
  D. Discussions regarding int proceedings, amendments and participation in the Convention . . 62

5. Finalizing the Text of the Convention . . 65
I. The First Draft . . 68
  A. Provisions on the establishment and organization of the Center . . 68
  B. Provisions on the jurisdtion of the Center . . 70
  C. Provisions on conciliation and arbitration . . 71
  D. Other provisions . . 74
II. The Legal Committee meetings . . 75
  A. Discussions regarding the establishment and organization of the Centre . . 77
  B. Discussions regarding the jurisdiction of the Centre . . 79
  C. Discussions regarding conciliation and arbitration . . 83
  D. Discussions of other provisions . . 87
III. Concluding steps . . 89
  A. The final meetings of the Committee of the Whole . . 90
  B. Approval of the final text . . 94

6. Establishment and Launch of the Centre . . 95
I. The Inaugural meeting of the Administrative Council . . 97
  A. Election of thtfirst Secretary-General of ICSID . . 98
  B. Adoption of the Provisional Regulations and Rules . . 100
  C. Approval of administrative and budgetary arrangement . . 101
II. The Provisional Regulations and Rules of the Centre . . 102
  A. The Provisional Administrative and Financial Regulations . . 103
  B. The Provisional Institution Rules . . 107
  C. The Provisional Conciliation Rules and Provisional Arbitration Rules . . 108
III. The Memorandum of Administrative Arrangements . . 112
IV. The first annual meeting of the Administrative Council . . 113
  A. The definitive Regulations and Rules . . 115
  B. The arrangements with the Permanent Court of Arbitration . . 117

7. ICSID's First Two Decades . . 119
I. Institutional developments . . 122
  A. Ratifications of the Convention . . 122
  B. The Administrative Council . . 122
  C. The Secretariat . . 125
  D. Designations to the Panels of Conciliators and of Arbitrators . . 128
  E. Other measures by Contracting States pursuant to the Convention . . 130
II. Promoting consents to the jurisdiction of ICSID . . 132
III. An overview of the early cases . . 135
IV. The 1984 amendments of the ICSID Regulations and Rules . . 138
V. The Additional Facility . . 141
  A. The initial proposal for an Additional Facility . . 141
  B. The draft Additional Facility Rules . . 145
  C. Adoption of the Additional Facility Rules . . 147
  D. Continuation of the Additional Facility . . 149
VI. The appointing authority role . . 151
VII. The investment law publishing activities . . 153

8. Aspects of the Early Cases . . 157
I. Registration of requests to institute proceedings . . 158
II. The constitution of commissions and tribunals . . 161
III. Approaches to jurisdiction . . 165
IV. Provisional measures . . 173
V. Applicable law . . 178
VI. Annulment decisions of the 1980s . . 185
VII. Enforcement of awards . . 191

9. ICSID from 1989 to 1999 . . 195
I. The growing network of investment treaties . . 198
II. Institutional developments . . 204
  A. Ratificaions of the Convention . . 204
  B. The Secretariat . . 205
  C. The Panels of Conciliators and of Arbitrators . . 207
  D. Agreements with other arbitration institutions . . 208
III. An overview of cases submitted to ICSID between 1989 and 1999 . . 208
IV. The first Additional Facility Proceedings . . 213
V. Some leading BIT cases of the 1990s . . 224
  A. Fedax v Venezuela . . 225
  B. Vivendi v Argentina. . . 227
  C. Maffezini v Spain . . 229
  D. Wena v Egypt . . 231

10. ICSID from 2000 to 2010 . . 235
I. Institutional developments . . 241
  A. Ratifications of the Convention . . 241
  B. The Secretariat . . 241
  C. The Panels of Conciliators and of Arbitrators . . 245
II. The 2003 amendments of the Regulations and Rules . . 246
III. The 2006 amendments of the Regulations and Rules . . 249
IV. An overview of the expanded caseload . . 257

11. Aspects of the New Cases . . 261
I. Registration of requests to institute proceedings . . 261
II. The constitution of commissions and tribunals . . 264
  A. Patterns in the appointment of conciliators and arbitrators . . 264
  B. Resignations and disqualification piposals . . 266
  C. Published decisions on disqualification proposals . . 268
  D. Disqualification criteria . . 273
III. Approaches to jurisdiction . . 275
  A. Dasions regarding the meaning of "investment" . . 276
  B. Decisions differentiating between contract claims and treaty claims . . 285
  C. Decisions on the role of MFN clauses in establishing jurisdiction . . 293
IV. Provisional measures . . 296
  A. Decisions on the binding effect of provisional measures . . 297
  B. Decisions on requests for security for costs . . 301
V. Applicable Law . . 303
VI. Annulment decisions . . 307
VII. Enforcement of awards . . 314

12. Conclusion . . 321

Appendices
I. Working Paper in the Form of a Draft Convention for the Resolution of Disputes between States and Nationals of Other States, June 5, 1962 . . 331
II. Preliminary Draft of a Convention on the Settlement of Investment Disputes between States and Nationals of Other States, October 15, 1963 . . 348
III. Draft Convention on the Settlement of Investment Disputes between States and Nationals of Other States (First Draft), September 11, 1964 . . 372
IV. Convention on the Settlement of Investment Disputes between States and Nationals of Other States and Accompanying Report of the Executive Directors, March 18, 1965 . . 394

Select Bibliography . . 419
Index . . 425

Table of Cases . . xv
Table of Legislation . . xxiii
List of Contributors . . xli
Introduction . . 1

1. Investigations with an International Dimension . . 7
A. Introduction . . 1.01
B. Organization of an International Investigation . . 1.09
C. Self-reporting Issues . . 1.19
D. Regulatory Coordination . . 1.27
E. Capital Market Issues . . 1.38
F. Data Protection Issues . . 1.45
G. Employee Issues . . 1.58
H. Privilege Issues . . 1.73

2. Data Protection under European Community Law . . 29
Overview . . 2.01
A. Data Protection Directive . . 2.03
B. Initial Collection . . 2.17
C. Intra-group Sharing . . 2.30
D. External Advisers . . 2.43
E. Regulators . . 2.50

3. Investigations in the United States . . 47
A. Introduction . . 3.01
B. US Regulatory Scheme . . 3.03
C. The Current Regulatory Environment . . 3.27
D. US Regulatory Investigations . . 3.32
E. Compulsory Process: Subpoenas . . 3.59
F. Alternative to Subpoenas: International Agreements and Diplomacy . . 3.83
G. Conducting Internal Investigations in the United States— Background and Recent Trends . . 3.94
H. Potential Waiver of Privilege and Exposure to Civil Liability . . 3.129
I. Independence . . 3.137
J. How to Conduct an Internal Investigation . . 3.148

4. Investigations in the United Kingdom . . 109
A. Introduction . . 4.01
B. Regulators . . 4.05
C. Powers of Regulators . . 4.23
D. Voluntary Investigations . . 4.51
E. Self-reporting . . 4.111
F. Announcements and Public Relations Strategies . . 4.118
G. Best Practices in Document Gathering and Preservation . . 4.136
H. Data Protection . . 4.150
I. Dealing with Privileged Documents . . 4.188
J. Managing Regulators . . 4.214
K. Managing Employees During Investigations . . 4.235
L. Concluding an Investigation . . 4.281
M. Litigation Risks . . 4.292
N. Settlement with Regulators . . 4.325
O. Conclusion . . 4.338

5. Investigations in the Netherlands . . 183
A. Introduction . . 5.01
B. Regulators . . 5.08
C. Powers of Regulators . . 5.37
D. Voluntary Investigations . . 5.53
E. Self-reporting . . 5.74
F. Announcements and Public Relations Strategies . . 5.78
G. Best Practices in Document Gathering and Preservation . . 5.99
H. Dealing with Privileged Documents . . 5.127
I. Managing Regulators . . 5.139
J. Managing Employees During Investigations . . 5.143
K. Concluding an Investigation . . 5.168
L. Litigation Risks . . 5.174
M. Settlement with Regulators . . 5.190
N. Conclusion . . 5.198

6. Investigations in Germany . . 225
A. Introduction . . 6.01
B. Regulators . . 6.08
C. Powers of Regulators . . 6.35
D. Voluntary Investigations . . 6.52
E. Self-reporting Obligations . . 6.76
F. Announcements and Public Relations Strategies . . 6.79
G. Key Points for Public Relations Strategies . . 6.95
H. Best Practices in Document Gathering and Preservation . . 6.100
I. Data Protection . . 6.115
J. Dealing with Privileged Documents . . 6.134
K. Managing Regulators . . 6.158
L. Managing Employees During Investigations . . 6.162
M. Winding up an Internal Investigation . . 6.191
N. Reporting Obligations . . 6.198
O. Litigation Risks . . 6.199
P. Settlement with Regulators . . 6.213
Q. Conclusion . . 6.219

7. Investigations in France . . 277
A. Introduction . . 7.01
B. Regulators . . 7.05
C. Powers of Regulators . . 7.49
D. Voluntary Investigations . . 7.79
E. Self-reporting . . 7.103
F. Announcements and Public Relations Strategies . . 7.109
G. Best Practices in Document Gathering and Preservation . . 7.124
H. Dealing with Privileged Documents . . 7.155
I. Managing Regulators . . 7.165
J. Managing Employees During Investigations . . 7.175
K. Winding up an Investigation . . 7.217
L. Litigation Risks . . 7.223
M. Settlement with Regulators . . 7.237
N. Conclusion . . 7.248

8. Investigations in Spain . . 323
A. Introduction . . 8.01
B. Regulators . . 8.14
C. Powers of Regulators . . 8.61
D. Voluntary Investigations . . 8.91
E. Self-reporting . . 8.111
F. Announcements and Public Relations Strategies . . 8.121
G. Best Practices in Document Gathering and Preservation . . 8.134
H. Dealing with Privileged Documents . . 8.159
I. Managing Regulators . . 8.180
J. Managing Employees During Investigations . . 8.190
K. Winding up an Investigation . . 8.223
L. Reporting Obligations . . 8.230
M. Litigation Risks . . 8.236
N. Settlement with Regulators . . 8.246
O. Conclusion . . 8.265
Annex 8.1 . . 369

9. Investigations in Italy . . 371
A. Introduction . . 9.01
B. Regulators . . 9.07
C. Powers of Regulators . . 9.45
D. Voluntary Investigations . . 9.65
E. Self-reporting . . 9.82
F. Announcements and Public Relations . . 9.89
G. Best Practices in Document Gathering and Preservation . . 9.102
H. Dealing with Privileged Documents . . 9.129
I. Managing Regulators . . 9.143
J. Managing Employees During Investigations . . 9.153
K. Winding up an Internal Investigation . . 9.177
L. Reporting Obligations . . 9.179
M. Litigation Risks . . 9.183
N. Settlement with Regulators . . 9.190
O. Conclusion . . 9.197

10. Investigations in Hong Kong . . 419
A. Introduction . . 10.01
B. Regulators . . 10.02
C. Powers of Regulators . . 10.31
D. Voluntary Investigations . . 10.43
E. Self-reporting . . 10.53
F. Announcements and Stock Exchange Obligations . . 10.57
G. Public Relations Considerations and Strategies . . 10.62
H. Best Practices in Document Gathering and Preservation . . 10.67
I. Dealing with Privileged Documents . . 10.79
J. Managing Regulators . . 10.92
K. Managing Employees During Investigations . . 10.98
L. Winding up an Investigation . . 10.121
M. Reporting Obligations . . 10.126
N. Litigation Risks . . 10.128
O. Settlement with Regulators . . 10.143
P. Conclusion . . 10.155

11. Investigations in Japan . . 449
A. Introduction . . 11.01
B. Regulators . . 11.06
C. Powers of Regulators . . 11.27
D. Voluntary Investigations . . 11.53
E. Self-reporting . . 11.68
F. Announcements and Public Relations Strategies . . 11.70
G. Dealing with Privileged Documents . . 11.81
H. Managing Regulators . . 11.95
I. Best Practices in Document Gathering and Preservation . . 11.104
J. Managing Employees During Investigations . . 11.119
K. Winding up an Investigation . . 11.138
L. Reporting Obligations . . 11.141
M. Litigation Risks . . 11.149
N. Settlement with Regulators . . 11.160
O. Conclusion . . 11.162

12. Investigations in China . . 483
A. Introduction . . 12.01
B. Regulators . . 12.04
C. Powers of Regulators . . 12.37
D. Voluntary Investigations . . 12.62
E. Self-reporting . . 12.74
F. Stock Exchange Announcements and Public Relations Strategies . . 12.79
G. Best Practices in Document Gathering and Preservation . . 12.91
H. Dealing with Privileged Documents . . 12.105
I. Managing Regulators . . 12.07
J. Managing Employees During Investigations . . 12.111
K. Winding up an Investigation . . 12.125
L. Litigadon Risks . . 12.131
M. Settlement with Regulators . . 12.139
N. Conclusion . . 12.145

13. Investigations in India . . 507
A. Introduction . . 13.01
B. Regulators . . 13.02
C. Powers of Regulators . . 13.30
D. Dealing with Regulators/Investigating Officers . . 13.58
E. Practical Issues Relating to Evidence . . 13.69
F. Issues Relating to Employers . . 13.78
G. Public Issues . . 13.88
H. Concluding an Investigation . . 13.94
I. Settlement with Regulators . . 13.100
J. Litigation Risks . . 13.109
K. Conclusion . . 13.115

14. Investigations in Russia . . 535
A. Introduction . . 14.01
B. Regulators . . 14.04
C. Powers of Regulators . . 14.18
D. Voluntary Investigations . . 14.38
E. Self-reporting . . 14.62
F. Announcements and Public Relations Strategies . . 14.72
G. Best Practices in Document Gathering and Preservation . . 14.76
H. Data Protection . . 14.81
I. Dealing with Privileged Documents . . 14.92
J. Managing Regulators . . 14.98
K. Managing Employees During Investigations . . 14.107
L. Concluding an Internal Investigation . . 14.114
M. Litigation Risks . . 14.117
N. Settlement with Regulators . . 14.130
O. Conclusion . . 14.133

15. Investigations in Brazil . . 561
A. Introduction . . 15.01
B. Regulators . . 15.07
C. Powers of Regulators . . 15.29
D. Voluntary Investigations . . 15.46
E. Self-reporting . . 15.58
F. External and Internal Communications . . 15.65
G. Best Practices in Document Gathering and Preservation . . 15.70
H. Data Protection . . 15.72
I. Dealing with Privileged Documents . . 15.82
J. Managing Regulators . . 15.94
K. Managing Employees During Investigations . . 15.102
L. Concluding an Investigation . . 15.107
M. Litigation Risks . . 15.109
N. Settlement with Regulators . . 15.118
O. Conclusion . . 15.125

Introduction to Annexes . . 583
Annex 1: Crisis Management . . 584
Annex 2: Disclosures . . 587
Annex 3: Document Management and Privilege . . 589
Annex 4: Employee Issues . . 591
Annex 5: Public Relations Issues . . 593

Index . . 597

Table of Cases . . xxi
Table of Conventions, Instruments, and Legislation . . xxvi
List of Abbreviations . . xxxvii

1. From GATT to the WTO . . 1
2. Disciplining Trade Instruments in the GATT . . 56
3. Most Favoured Nation and Exceptions . . 129
4. Demesne Instruments . . 231
5. Deviating from WTO Obligations . . 324
6. Agreements Dealing with Customs Procedures . . 382
7. Antidumping . . 408
8. Subsidies . . 520
9. Safeguards . . 605
10. Technical Barriers to Trade: Sanitary and Phyto-sanitary Measures . . 668
11. Agreement on Agriculture; Agreement on Textiles and Clothing . . 743
12. Government Procurement . . 798
13. Transparency . . 816
Conclusions . . 840

References . . 846
Index . . 891