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After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew...

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BEER 3/14/2012
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When You Think Asia Disputes, Think Fulbright. TM After the spill China, environmental disasters and the role of international arbitration
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Page 1: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

When You Think Asia Disputes, Think Fulbright.TM

After the spillChina, environmental disasters and

the role of international arbitration

Page 2: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

2

Overview

Environmental backdrop

Sources of law – “solutions”

Effectiveness and complicating factors

A role for arbitration?

Page 3: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

3

Overview

Environmental backdrop

Sources of law – “solutions”

Effectiveness and complicating factors

A role for arbitration?

Page 4: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

4

Backdrop

High profile catastrophes…and some lower profile ones

Growing government activism

Legal solutions evolving to meet the problems

Page 5: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

5

Bohai Bay

Background● 49 /51 %● 3,000 barrels● RMB 1 billion

Short term response - question marks● Compensation fund vs class action suits● Fund inclusion● Fund distribution

Regulatory response● No pre-existing regime for offshore structures● new ship pollution response regulation

Page 6: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

6

Overview

Environmental backdrop

Sources of law – “solutions”

Effectiveness and complicating factors

A role for arbitration?

Page 7: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

7

Sources of law - PRC

Civil law● Litigation● Arbitration

Bohai, March 2006

Criminal law● “major environmental pollution”● “poisoning”

Administrative law

Page 8: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

8

Sources of law - international

Civil law● Litigation

E.g. Trafigura, Deepwater Horizon, ● arbitration

International law● CLC● BUNKER

Page 9: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

9

Overview

Environmental backdrop (what’s happening)

Sources of law – “solutions”

Effectiveness and complicating factors

A role for arbitration?

Page 10: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

10

International arbitration

method of choice for parties resolving international disputes● Flexibility● Independence● Enforceability

Arbitration or litigation?● Domestic litigation● International litigation

uses and limitations● Creature of contract

Page 11: After the Spill - China, Environmental Disasters, and the Role of Internatonal Arbitration, Matthew Townsend (March 2012)

11

Chinese arbitration regime

Chinese features● short-form● little scope for witness and expert witness cross examination or

document discovery● role of Chinese arbitrators is often inquisitorial rather than

adversarial● decide matters on the basis of concepts of ‘fairness’ and ‘equity’


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