- 19 -
which, as to the substantive issues in dispute, the tribunal
concludes to be established public international law (which the
tribunal concludes is part of the law of Kuwait). The fourth
section analyzes certain of the contractual obligations of the
parties’ and concludes that (1) in light of negotiations between
the parties preceding the expropriation, some amount is owing to
Kuwait from Aminoil on account of past profits received by
Aminoil in excess “of what would have constituted a reasonable
rate of return” to Aminoil and (2) within the framework of a
general settlement of the consequences of the expropriation, the
tribunal has jurisdiction to determine such amount due to Kuwait.
The fifth section addresses the validity (lawfulness) of the
expropriation and is described infra at section II.C.7. The
sixth section deals with certain miscellaneous counterclaims by
Kuwait against Aminoil. The seventh section is captioned “The
Question of Indemnification” and sets forth the tribunal’s
resolution of Kuwait’s claims against Aminoil and Aminoil’s
claims against Kuwait and is described in infra at section
III.C.8.
7. Validity of the Expropriation
In the fifth section of the award (section five), the
tribunal begins its discussion of the validity of the
expropriation by recognizing that the question of validity “lies
at the core of the present litigation.” The tribunal did not
have difficulty in disposing of the parties’ various arguments
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011