Early Dismissal Mechanism in Investment Arbitration

The unmeritorious claims, which in addition to wasting time and money, delaying reparation, is one of the challenges that arbitration tribunals have always faced. For the first time, rule 41 (5) of the ICSID arbitration rules in 2006 made it possible to, at the request of parties to the dispute, the arbitral tribunal dismisses a claim is manifestly without legal merit before the start of the proceedings. The mechanism, which has since been accepted in some arbitration rules and some investment arbitration awards, has specific features, requirements, and legal consequences. Thus, the request, which may be related to jurisdictional or substantive nature, must be filed within a short time after filing the application and the reasons must also be given. Also, this proceeding is urgent and the arbitral tribunal must decide after hearing the parties of the dispute's arguments and defenses. This mechanism is very important, as the decision of the tribunal in acceptance of the request is subject to res judicata. This mechanism is very important, as the decision of the tribunal in acceptance of the request is subject to res judicata.