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XIII Exhaustion of Local Remedies

Sabahi Rubins

From: Investor-State Arbitration (2nd Edition)

Borzu Sabahi, Noah D Rubins, Don Wallace, Jr

From: Investment Claims (http://oxia.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved. date: 28 November 2023

Exhaustion of local remedies — Full protection and security — Customary international law — Conduct of proceedings

This chapter discusses the exhaustion of local remedies and the notion of futility. The requirement of exhaustion of local remedies is a longstanding rule of customary international law that was developed in the context of diplomatic protection. Under this rule, where a state commits an act that injures a foreign person, the victim traditionally must exhaust all the effective domestic legal remedies before its home government can espouse its claim in the exercise of diplomatic protection. The exhaustion of local remedies may also be required as a substantive element of some international wrongs, such as denial of justice. Most modern investment treaties, however, do not require exhaustion of local remedies as a precondition to submission to arbitration.

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