Analysis

Top Court's Ruling On EU Investment Pact Is A Game Changer

Law360 (March 6, 2018, 8:37 PM EST) -- Europe's highest court concluded Tuesday that an arbitration clause in a Dutch-Slovak investment treaty is incompatible with European Union law, a ruling that experts say will alter the European investor state arbitration landscape by curtailing investors' ability to assert claims under similar trade pacts.

The European Court of Justice concluded that the provision, which stipulates that investor disputes against the governments of the Netherlands or Slovakia would be resolved through arbitration, improperly allows arbitral tribunals to interpret EU law. That's something that only a European court can do, according to the decision.

The decision resolves in the European Commission's favor a...

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