DR-CAFTA, Exhaustion of Local Remedies, ICSID Arbitration, ICSID Convention, International Investment Arbitration, International Investment Law, Investment Arbitration, Investment Disputes, Investment law, Investment protection, Investor-State arbitration
A Local Remedies Pitfall Avoided—for Now: Key Takeaways from Honduras Próspera Inc. v. Honduras
On February 26, 2025, the Tribunal in Honduras Próspera Inc., et al. v. Republic of Honduras rejected an unprecedented attempt to dismiss investment treaty claims for failure to exhaust local remedies. While respondent states have often contended that claimants should have pursued local remedies for one reason or another, Honduras advanced a novel argument in…