MEMO CLAIMANT - ALVAREZ - FDI Moot

JURISDICTION
A. THIS TRIBUNAL IS ENTITLED TO EXERCISE ITS JURISDICTION OVER THE
DISPUTE
I. RATIONE MATERIAE JURISDICTION REQUIREMENTS ARE SATISFIED
11. The definition of an „investment‟ under the BIT is set forth in art. 1 thereof.
Accordingly, „the term „Investment‟ shall be construed to mean every asset that an
Investor owns or controls, directly or indirectly. Moreover, „investment includes, in
particular, (…) shares‟.
12. Thus, two requirements have to be met by an investment to fall inside the scope of the
BIT definition: (a) an investor shall own or control an asset, directly or indirectly, that
has a characteristics of an investment, in particular shares; (b) an investment shall be
undertaken in conformity with the laws and regulations of the Territory in which the
investment is made.
1. Investor owns directly an asset, that has characteristics of an investment, namely,
shares
13. On 1 February 2007, Claimant incorporated FPS, a wholly-owned subsidiary in
Sylvania, to participate in the bidding process. 1
14. Therefore, investor owns shares in a company incorporated in the territory of
Sylvania, which are qualified as an investment under the definition provided for in art.
1 of the BIT. In support of this view Claimant would like to point that ICSID tribunal
issued numerous awards confirming that should a BIT state so, shares shall be deemed
as an investment 2 .
2. The investment is made in accordance with law
1 Facts, §3.
2 Lauder; Tokios Tokelės.
2