Application of Umbrella and Most Favored Nation Clauses Related to Restrictions Imposed on the Ratione Materiae of an Arbitration Clause

Abstract

Purpose: This study analyses the umbrella clause and the most favored nation clause by focusing on A11Y Ltd. v. Czech Republic issued under international commercial arbitration. Research design, data, and methodology: Typical case analysis deals with the issues surrounding the selection of applicable cases for international commercial arbitration. Results: Under the arbitration clause, which explicitly excludes disputes regarding the FET clause and the non-discrimination clause, it is not acceptable to invoke both clauses through an umbrella clause. Conclusions: Above all, from the facts of this case, it is thought that even if the jurisdiction is expanded, difficulties accompany the complete citation of a claim on the merits. Regarding a non-discrimination obligation, the Tribunal denies the distinction of administrative rules in the context of expropriation. On the other hand, the inappropriate behavior of the Labor Bureau is acknowledged, and there is room for violation of FET or the obligation to prohibit investment damage.