Parallel Proceedings in Foreign Investment Disputes and Preventing them

Parallel Proceedings, which can be described in short as commencing arbitration and/or litigation regarding related disputes in different dispute settlement forums or mechanisms, most of the time in investment disputes, are caused by the myriads of dispute settlement forums and procedures stipulated in investment contracts and investment treaties. In spite of the corrosive consequences of the Parallel Proceedings, battling the deleterious effects of it, is not fully developed and yet needs complete attention of the disputing parties to the contractual methods, especially prior to the stage of arising an actual dispute. Arbitral tribunals have developed some principles and mechanisms to battle Parallel Proceedings, most of which require parties’ consideration or initiative to be fully functional. Battling parallel proceedings throughout the period of enforcement of the award involves so many difficulties which in turn show the significance of confronting it prior to the stage of the enforcement of the award.