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International Investment and ADR: Preventing and Managing Investment Treaty Conflict. Andrea K. Schneider Professor of Law Marquette University Law School andrea.schneider@marquette.edu. International Systems. Investment Arbitration. Negotiation Regime. Supranational Court.
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International Investment and ADR: Preventing and Managing Investment Treaty Conflict Andrea K. Schneider Professor of Law Marquette University Law School andrea.schneider@marquette.edu
Investment Arbitration Negotiation Regime Supranational Court International Adjudication Continuum of Constitutionalization Weakest Strongest International Systems --Schneider, 1999
Dispute Resolution Process Spectrum Complete Outcome Control No Outcome Control Adjudicative (Binding) ADR Processes Mediative (Non-Binding) ADR Processes Direct Negotiation Trial Facilitative Mediation Bracketed Arbitration Maximum Process Control Minimum Process Control Evaluative Mediation Final Offer Arbitration Early Neutral Evaluation (ENE) Arbitration Private Judging Mini-Trial Med-Arb Bordone, 2008
Procedural Justice • Explains why international system moved toward courts • Explains why domestic alternative dispute resolution took hold
Dispute System Design Contexts Organizational International institutions Nation-States Companies Universities Government Agencies NGOs Non-profits “Transactional” Mass Torts Class Actions Complex disputes Natural disasters Terrorism Repatriation Others? Bordone, 2008
Process Design Principles • Participation • Suitability • Process Accountability • Results Accountability • Fluidity • Sustainability • Permeability
Process Design—Participation • Key stakeholders around the table • Stakeholders help design and troubleshoot • Funding and support • Technical & legal training
Process Design—Suitability • Is mediation the correct process? • Use of legal defenses • Political/domestic constraints • Cultural understanding
Process Design— Process Accountability • Need education & representation • Need group of skilled mediators • Transparency of process • Follow-up to see how operates
Process Design—Results Accountability • Outcomes—transparency issues • Repeat players—countries & municipalities • Repeat sectors
Process Design—Fluidity • Timing—settlement opportunities throughout • Adjust process and administration as needed
Process Design—Sustainability • Embedded into treaty? • New kinds of training and assumptions needed • New delegation of settlement responsibilities needed
Process Design—Permeability • Part of dispute prevention and management system (Ombuds offices?) • Facilitate information exchange • Facilitate administrative review
Where Do We Go From Here? • Need—and want—shadow of investment arbitration • Better structure time between problem arising and arbitration result • Can offer process choices between binding arbitration & negotiation • DSD is up to the challenge
International Investment and ADR: Preventing and Managing Investment Treaty Conflict Andrea K. Schneider Professor of Law Marquette University Law School andrea.schneider@marquette.edu