Reference no: EM132872463

As you conclude your remarks under Part 3, the Minister of Internal Affairs, Howie Kendrick, bursts into Prime Minister Soto's office and disrupts your meeting. After speaking in confidences with Kendrick, Prime Minister Soto returns to reveal to you the reason for the interruption. A local NGO associated with the Robles indigenous group has just released a report revealing Scherzer Petroleum's gross negligence in disposing of waste-water used in its petroleum refining operations, which, if true, would be in violation of Rendonian law. Soto relates that said disposal has severely contaminated the Long River, which runs through the heart of Robles community land, and from which the Robles indigenous community obtains 80% of its drinking water. Soto is furious and asks your opinion on the following matters:

Discussion 1. If Rendonia terminates immediately its concession agreement with Scherzer Petroleum, what are Scherzer's legal options under Rendonia's BIT with the Strasburg Empire?

Discussion 2. Would a cancellation of the concession contract likely constitute a violation of the Rendonia-Strasburg BIT?

Discussion 3. Approximately how long do these types of cases take to be resolved?

Discussion 4. Approximately how much would it cost Rendonia to defend itself, given the costs of other similar cases?

Discussion 5. What do you think the likely outcome of the case would be? Why?