Issue conflict of arbitrators

Arbitrator Zachary Douglas reverses course and resigns as ruling on disqualification loomed from PCA; parallel challenge in ICSID case is next battleground | Investment Arbitration Reporter

An arbitrator has resigned in the face of a challenge in an ongoing arbitration under the U.S.-Colombia Free Trade Agreement.

Arbitrator Zachary Douglas notified the parties of his resignation on August 23rd in the case of Alberto Carrizosa Gelzis, Felipe Carrizosa Gelzis, and Enrique Carrizosa Gelzis v. Colombia.

Investors lodge challenge to Zachary Douglas, alleging prejudgment of a core legal issue that arises in their investment treaty arbitration | Investment Arbitration Reporter

The challenge raised by the claimants to Mr. Douglas is rooted in a so-called “issue conflict”, specifically the claimants belief that Mr. Douglas has taken a fixed (and restrictive) view in several academic writings as to the scope for using a generic MFN clause to expand the jurisdiction of an international tribunal. The claimants allege that Mr. Douglas takes a principled view that cuts across different cases and fact-patterns, and reaches a negative answer (unless the relevant MFN clause explicitly reaches to dispute settlement).