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Law

The Doctrine of Legitimate Expectations in Investor-State Arbitration

Quick fact

In investor-state arbitration, tribunals have held that a state's obligation to treat investors fairly includes protecting the expectations an investor reasonably formed when the investment was made—but only if those expectations were based on specific, targeted assurances and the state did not act reasonably and proportionately.

Why this is interesting

You invest millions in a foreign country, relying on its stable legal system. Then the government suddenly changes the rules, and your investment collapses. Can you hold the state accountable? The doctrine of legitimate expectations might be your only hope.