Exhaustion of Local Remedies Rule in Investment Lawsuits with an Emphasis on the Denial of Justice Lawsuit in Loewen v. United States of America Case

The cornerstone of international investment law is to ensure the foreign investor's rights through international law standards including fair and equitable treatment. If the host state violates the standards, the foreign investor will not be obliged to raise a claim before local courts prior to international settlement of dispute. In contrast, in denial of justice, the investor must exhaust local remedies before seeking international redress. So in this respect, The Loewen case as an important arbitral practice on the relationship of denial of justice and exhaustion of local remedies will be analyzed in this article. The approach of Investment treaties will also be evaluated. This article concluded that arbitral tribunal in Loewen has made mistake by distinction between local remedies and finality rule. In order to resolve this ambiguty and confusion in investment arbitration in the field of denial of justice, one should wait for the treaty procedure of the states in bilateral or multilateral treaties for mutual encouraging and supporting of investment