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The Texaco/Libya Arbitration

The Texaco/Libya Arbitration



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Published by crlstinaaa

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Published by: crlstinaaa on Jul 07, 2008
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Customary International LawCase: The Texaco/Libya Arbitration (1977)Issue: Can the legal value of UN resolutions be determined under thecircumstances under which they were adopted and the analysis of the principlesthey state?If there are disputes, they shall be settled by arbitrators. Rules that are to beapplied come from international settings. This is an ex parte proceeding becauseLibya would not participate. The arbitrator normally would take the complaintallegations as true. However, in international cases (as here) the court wentthrough a full fact finding procedure to determine the outcome.Notes:1. “Mixed” International Arbitration: Here the Deeds of Concession betweenthe U.S. oil companies and the Libyan government provided that an aggrieved parrycould request the President of the International Court of Justice to appoint asole arbitrator if the other party refused to make an appointment to a 3-judgepanel.2. Individuals and International Law: The Arbitrator rejected the positivistdoctrine of the 19th and early 20th centuries that held that international lawcould only bind states. Now individuals and private corporations can be subject tointernational law.3. The Role of UN General Assembly Resolutions in Making CustomaryInternational Law:a. The Libyan argument rested on the foundations of the 1973 and 1974 UNGeneral assembly resolutions proclaiming a New International Economic Order(NIEO). The legal question for the Arbitrator was whether these NIEO resolutionshad any legal force especially in the light of UN General Assembly Resolution 1803(XVII) if 1962. In 1962 the UN was trying to get a consensus, and the resolutionwas adopted with only a few negative votes.b. 1974 resolution did not reflect the kind of consensus of the 1962 UNresolution. The consequence is that the 1962 resolution still was the rule of law.1. Evaluating General Assembly Resolutions: In looking to the votes ofstates on General Assembly resolutions, should the votes of some states be givenproportionality greater weight.2. The Efficacy of the Arbitral Award: Libya agreed to pay Texaco $76MM, TheNew York Convention on the Recognition and Enforcement of Foreign Arbitral Awardsprovides for the recognition and enforcement of many foreign arbitral awards., andis used in commercial cases.Notes• Blur btwn public int'l law vs. private int'l lawHere, 2 corporations involved
• Facts:2 oil companies (private) doing business in Libya
§ Relationship btwn the parties: Deeds of ConcessionA K btwn companies and Libya, give the companies rights
These rights should not be done away with unless there is
 mutual consentThen gov't of Libya passes a Nationalization Law
§ Taking private companies, and making them Libyan governed (under

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