Proprietary Estoppel and Legitimate Expectations, Res Judicata in Interstate Arbitration
Proprietary Estoppel and Legitimate Expectations, Res Judicata in Interstate Arbitration

Summary/Abstract: The concept of estoppel has been enshrined in international arbitration law and this is development arises from the pacta sunt servanda, abuse of rights, estoppel and acquiescence, which require disputes to be settled in good faith. The promissory estoppel is the ground which has been recognised in international arbitration and applies in intestate disputes where the Bilateral Investment Treaties (BITS) are in breach. The source of law that regulates disputes in arbitration tribunals is derived from European administrative law and relates to the principle of public bodies acting with probity and diligence in executing their functions. The doctrine of legitimate expectations emanates from public law in EU states, such as vertrauensschutz in German administrative law, which can be compared to legitimate expectations in BITs. The principles have been applied in the International Centre for the Settlement of Investment Disputes (ICSID) tribunals to provide protection for investors. In putting effect arbitral rulings, the courts have to consider if they are res judicata or merely collateral estoppel in their effect. This paper enquires the extent to which the courts will consider the arbitral rulings for their finality based on legitimate expectations and not overrule them in consideration of the doctrine of estoppel in international law.

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