The Risk Management of Superior Award in International Investment Arbitration in the Method of Categorization

Abstract

Due to the inconsistency of interpretive path and applicable methods, the award made by the international investment arbitral tribunal cannot naturally be recognized by both parties, which are always the risk of disqualification and annulment. To control the questioned risks of the award, the arbitral tribunals shall make “superior award†which could be recognized by both parties as far as possible. Explaining the superior award in the method of categorization is able to analyze a series of awards under the procedure or substantial issues of same type or the procedural or substantial contents of specific issue arguments on the individual cases. The application of the method could proceed from two angles: The micro categorization means the content of arbitral award should be divided into the “superior part†and “inferior part†in terms of the reasonableness of the individual award. The former has the value of being invoked while the latter should be excluded. The macro categorization studies the categorization of a series of awards in the range of the same legal relationship, and the separation of superior and inferior award makes its appearance. However, the analysis of award through the empirical method may further determine the inherent characteristics of superior award – the integrity of the logic clues and the hierarchy of the argument should be put more emphasis on the argument, and adequate and rigorous demonstration should be made combined with specific facts of the case. If the pro-portion of superior award in the investment arbitration award can be improved, the possibility that the parties finally accept the award will be increased, and the risk of disqualification and annulment could be controlled.