The Court of Justice rules against ad hoc arbitration agreements that are identical to clauses contained in bilateral investment treaties between Member States

The Court of Justice of the European Union has again ruled on investment arbitration, this time in the PL Holdings case. In this new judgment, handed down on 26 October, the CJEU declared that European Union law prohibits a Member State from entering into an ad hoc arbitration agreement that is identical in content to an invalid arbitration clause contained in a bilateral investment treaty between Member States. In the wake of the judgments in the Achmea and Komstroy cases, the decision in the PL Holdings case represents a further restriction on investment arbitration within the EU.

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