RESEARCH ESSAY QUESTIONS

Q7. “Article 3(4) of the BIT does have the effect for which BIVAC argues, namely that it gives the Tribunal jurisdiction over a claim that arises from or is produced directly in relation to the Contract. This is not, however, the end of the matter.”
- Bureau Veritas, Inspection, Valuation, Assessment and Control, BIVAC B.V. v Republic of Paraguay (ICSID Case No. ARB/07/9, Decision on Jurisdiction of 29 May 2009), para. 142).
Critically discuss the case law of arbitral tribunals on the interpretation and application of the “umbrella clause”. How should tribunals deal with claims made under the “umbrella clause” when those claims have not been presented under the other applicable instrument (e.g., a contract)?