The Case, The Real Claimant Of An Eligible Claimant Under The Treaty

2160 WordsApr 22, 20169 Pages
. The Tribunal lacks jurisdiction to over the claims submitted by CAM. In the present case, the real claimant is Contifica Spirits S.p.A. rather than the CAM. In other words, Contifica Spirits S.p.A is not an eligible claimant under the Treaty. Its corporate veil must be pierced since it misused corporate formalities to gain access to this arbitration. Without the incorporate, Contifica Spirits could not bring a claim to arbitration. From the basic facts of the case, the FBI was sold to Contifica Spirits S.p.A. This company is incorporated under Posteriana, as to its parent company, Contifica Group, is incorporated in Prosperia. Both of these two countries have not entered into a BIT with Ruritania. While, it transferred the shares…show more content…
Therefore, Contifica Spirits should not be recognized as the true investor in the present case. According to Article 31 of the Vienna Convention,“a treaty shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose”. Moreover, the Claimant cannot use the procedural mechanism while not fulfilling the economic purpose of the treaty. A Similar logic was applied in the Saluka v. The Czech Republic. Therefore, the access method to international arbitration is fall outside the scope of the usual meaning of this term. “Piercing the corporate veil” is applicable here. The privilege of legal personality in the present case is the protection provided by a BIT. Contifica Spirits did not have access to this arbitration. In order to use the procedural mechanisms of the Ruritania-Cronos BIT, so it used the forms of corporate vehicle of the Contifica Group, Contifica Asset Management Corporation. The intention to get the legal personality is obvious. Unlike CAM, Contifica Spirits made a true investment in Ruritania. Basic the fact that both Contifica Spirits and CAM are fully owned subsidiaries of the same company; it was easy to use the latter as a corporate vehicle for the former. The corporate veil should be uncovered, and the real interest at stake should be Contifica Spirits‟. As Contifica Spirits
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