The Scope and Justification of Legitimate Expectation Protection Under FET Clauses

Document Type : Original Article

Author

Egyptian Judiciary. Egyptian Lawyers Syndicate. Uppsala University, Sweden. IU Robert H. McKinney School of Law, Indianapolis, USA.

Abstract

In the last few years, it became rare to see an arbitral award in an investor-state cases that the tribunal found the state liable for breaching the Fair and Equitable Treatment (FET) clause without relying to a certain extent on the violation of the legitimate expectations of the investor in his relation with that state. However, most of these tribunals prefer not to invoke the basis and the limitation of this concept. This led many scholars to criticize and question the legality of its application.
So, a thorough study to this concept is vital in order to understand how do arbitration tribunals are dealing with it and how it is applied in different awards, but prior to that I will refer to the beginning of it and why it was found as an important element of the FET clauses. Then will discuss whether it can be applied if no FET is included in the treaty, and finally an examination to the justification of the concept in an effort to answer the debatable question of is it enough to find a state liable for breaching of the FET clause, i.e. the BIT, for acting in contrary with the investor's legitimate expectation?

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