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In1625,HugoGrotius,commonlyknownasoneofthefoundingfathersofModern

InternationalLaw,inhisseminaltreatisewrote,Injudgingofthewillbynatural
person,Aristotle,whohastreatedthesubjectwithgreataccuracy,makesthemindthe
seatofjudgmentandthewilltheseatofequity,whichhenoblydefinestobethe
correctionofthat,whereinthelaw,byreasonofitsuniversalnatureisdefective.And
uponthisprincipleallwillsandtreatiesoughttobeinterpreted.Forasallcasescould
neitherbeforeseennorexpressedbythelawgiver,itisnecessarytoleaveapowerof
exceptingthecases,whichhehimselfwouldhaveexceptedifhewerepresent.1
Overtheyears,equityhasbeenreceivingincreasedattentionsincethe1930s,ata
timewheninternationallawyershadhighhopesfortheprospectsofinternational
adjudicationandinternationalarbitrationaseffectiveandwidespreadmeansof
disputesettlement.2Thus,sincethen,therehasbeenconsiderablethinkingaboutthe
extenttowhichinternationaljudgesandarbitershadorshouldhavediscretionto
applyequitableconsiderationsparticulartothespecificcaseand,thus,torelaxor
supplementmoreorlessstrictrulesofinternationallaw.3
Thedebateoftheroleofequityininternationallawbeganinthe1930s.Adebatethat
beganthenandthatcontinuestoday:Towhatextentmayaninternationaljudgeor
arbitersupplementormodifystrictrulesofinternationallawwiththenotionsofwhat
isfairandjust?Opinionsdifferonthescopeoftheplaceofequityininternational
law.Ononehand,ithasbeenagreedthatequityconstitutesapartofinternationallaw
andthatasharpdivisionbetweenlawandequity,asprevailingincertainlegal
systemsoftheworld,shouldnotfindaplaceintheInternationaljurisprudence.
However,contrastingly,ithasalsobeenarguedthatArticle39oftheICJ,bynot
includingequityamongthesourcesofInternationalLaw,hasexpresslyexcludedit.4
1H.Grotius,TheRightsofWarandPeace,(2005ed.)Vol.1[1625].
2M.W.Janis,TheAmbiguityofEquityinInternationalLaw,9Brook.J.IntlL.7(1983).
3LesterBernhardtOrfield,EquityasaConceptofInternationalLaw,18KY.L.J.31,116(1929).
4RuthLapidoth,EquityinInternationalLaw,ProceedingsoftheAnnualMeeting(AmericanSociety
ofInternationalLaw),Vol.81,availableat:http://www.jstor.org/stable/25658357,Lastaccessedon
Mar.11,2015.

Moreover,theequitydebatealsoconcernstheunavoidabletensioninanylegal
systembetweenthegoalsofpredictabilityinherentinstrictuniversalrulesandthe
goalofgreaterfairnessinspecificcasesinherentinarelianceonflexibleequitable
considerations.5
Article38oftheStatuteoftheWorldCourt,firstdraftedin1920,presentlyreadsas:
1.TheCourt,whosefunctionistodecideinaccordancewithinternationallawsuch
disputesasaresubmittedtoit,shallapply:
(a).Internationalconventions,whethergeneralorparticular,establishingrules
expresslyrecognizedbythecontestingStates;
(b).internationalcustom,asevidenceofageneralpracticeacceptedaslaw;
(c).thegeneralprinciplesoflawrecognizedbycivilizednations;
(d).subjecttotheprovisionsofArticle59,judicialdecisionsandtheteachingsofthe
mosthighlyqualifiedpublicistsofthevariousnations,assubsidiarymeansforthe
determinationofrulesoflaw.
2.ThisprovisionshallnotprejudicethepoweroftheCourttodecideacaseexaequo
etbono,ifthepartiesagreethereto.6
TheICJspredecessor,thePermanentCourtofInternationalJustice(19201946)hasa
similarmandatealbeitcertaindifferencewithregardstheparagraphsandthe
exclusionof:whosefunctionistodecideinaccordancewithinternationallawsuch
disputesasaresubmittedtoit.
Article38hasbeentheoriginalstandardforanalyzingthesourcesofinternational
law.Overtheyears,sincethepartieshavenevergiveneitherthePCIJortheICJan
exaequoetbonoauthorizationandsinceArticle38hastakenonanimportanceasa
descriptionofthesourcesofinternationallawevenoutsidetheconfinesofthe
WorldCourt7,internationallawyershavesoughttofindasomewaytoincludeatleast
someequitablepowerswithintheconfinesofinternationallaw.Intheprocess,they
5RalphA.Newman,EquityintheWorldsLegalSystemsAComparativeStudy,CaliforniaWestern
SchoolofLaw,U.S.I.U.StudiesinJurisprudence,Vol.1,Bruylant:Brussels,1973.
6UnitedNations,StatuteoftheInternationalCourtofJustice,18April1946,availableat:
http://www.refworld.org/docid/3deb4b9c0.html,LastaccessedonMar.12,2015.
7JamesCrawford,BrownliesPrinciplesofPublicInternationalLaw,8thed.,OxfordUniversityPress,
2012.

havedistinguishedbetweenequitableprinciplestobeseenasapartofgeneral
principlesoflawunderArticle38(1)(c)andthepowertodecideacaseexaequoet
bono,whichisatthediscretionoftheparties.Thisgivesrisetoatwofoldproblem
fortheprincipleofEquitywithinArticle38,ononehand,Article38(1)doesnot
explicitlyenumerateequityassomethingtobeappliedindecidingadispute,
secondly,decisionsexaequoetbono,whichinitselfisequitylike,mayonlybe
allowedifboththepartiestoadisputeagreethereto.
However,withtheindividualopinionofJudgeHudsonintheMeusecasein1937,
ithasnowbeengenerallyacceptedbyall,equityisincludedinArticle38(1)by
relyingonpart(c).whichincorporatesgeneralprinciplesoflaw.Equityisageneral
principleoflawcommontomajorlegalsystem,therebyqualifyingitaspartof
article38(1)(c)andthusproperlyincorporatingitintointernationallaw.Moreover,
equityhasbeendistinguishedfromthepowerofexaequoetbono,therebysparing
equityfromtheconsentrequiredunderArticle38(2).8
JudgeHudsonstatedinthecase,TheCourthasnotbeenexpresslyauthorizedbyits
Statutetoapplyequityasdistinguishedfromlaw.Nor,indeed,doestheStatute
expresslydirectitsapplicationofinternationallaw,thoughtashasbeensaidon
severaloccasionstheCourtisatribunalofinternationallaw.Article38ofthe
Statuteexpresslydirectstheapplicationsofgeneralprinciplesoflawrecognizedby
civilizednations,andinmorethanonenationprinciplesofequityhaveanestablished
placeinthelegalsystem.TheCourtsrecognitionofequityasapartofinternational
lawisinnowayrestrictedbythespecialpowerconferreduponittodecideacaseex
aequoetbono,ifthepartiesagreethereto.9

8M.W.Janis,EquityandInternationalLaw:TheCommentintheTentativeDraft,(Tent.DraftNo.1,
1980).
9DiversionofWaterfromtheMeuse,Netherlandsv.Belgium,1937P.C.L.J.,ser.A/B,No.70,at76
77(Hudson,J.,individualopinion)

IntheUnitedNationsConventionoftheLawofSea,1982,equityhasbeenwidely
adoptedinresolvingMaritimedisputes.TheUNCLOSrefersinitspreambleto,the
equitableandefficientutilizationoftheirresources,totherealizationofajustand
equitableinternationaleconomicorderandtotheprinciplesofjusticeandequal
rights.Articles74&83envisagesanequitablesolutiontotheproblemsof
delimitationofthecontinentalshelfandtheexclusiveeconomiczoneofoppositeand
adjacentstates.UNCLOSthroughArticles161(1)(e)and163,foreseesanequitable
geographicaldistributionofmembershipintheorgansoftheInternationalSeabed
Authority.
Furthermore,inaccordancetoArticles140,155(2),162(2)(n),160(2)(j)and173(2),
theprofitstobederivedfromtheactivitiesinthedeepseabedlyingbeyondareasof
nationaljurisdictionsaretobedistributedonthebasisofequitablesharing.Similarly,
theincomefrompaymentsmadewithrespecttotheexploitationofthecontinental
marginbeyondthe200milezone,istobedistributedonthebasisofequitable
sharingcriteriaasprovidedinArticle82(4).Article69and70togetherstate,that
landlockedandgeographicallydisadvantagedstatesshouldparticipate,onan
equitablebasis,intheexploitationofthefishinexclusiveeconomiczonesofstatesin
thesameregion.Article266(3)speaksontheencouragementofthetransferofmarine
technologyonanequitablebasisandlastly,Article59clearlystatesthatconflicts
betweentheinterestsofthecoastalstateandanyotherstateintheexclusiveeconomic
zoneshouldberesolvedonthebasisofequityandinthelightofalltherelevant
circumstances,takingintoaccounttherespectiveimportanceoftheinterestsinvolved
tothepartiesaswellastotheinternationalcommunityasawhole.

TheArticle11(7)ofthe1979AgreementGoverningtheActivitiesofStatesonthe
MoonandOtherCelestialBodies,speaksaboutanequitablesharingbyallState
partiesinthebenefitsderivedfromthoseresources
Onsimilarlines,thePreambletotheUnitedNationsConventiononInternational
LiabilityforDamageCausedbySpaceObjectshasrecognizedtheneedforeffective

rulesandproceduresconcerningliabilityfordamagecausedbyspaceobjectsandto
ensure.Afullandequitablemeasureofcompensationtovictimsofsuchdamage.
Insituationswherein,theapplicationoftheProvisionsoftheConventionon
RegistrationofObjectsLaunchedintoOuterSpacehasnotenabledaStatepartyto
identifyaspaceobjectwhichhascausedadamagetonaturalorjuridicalpersonsor
whichmaybehazardous,Article6statestheassistanceunderequitableand
reasonableconditionstowardstheidentificationofsuchobjects.
Onsimilarlines,thePrinciple5ofthePrinciplesrelatingtoRemoteSensingofthe
EarthfromOuterSpacespeaksaboutStatescarryingoutremotesensingactivities
shallbemakingavailableopportunitiesforparticipationonequitableandmutually
acceptableterms.
TheArticle33(2)oftheInternationalTelecommunicationConvention,1973speaks
abouttheavailabilityofradiofrequenciesandgeostationarysatelliteorbitarelimited
naturalresources,andthereforemustbeusedefficientlyandeconomicallysoasto
ensureequitableaccesstobothinconformitywiththeprovisionsoftheRadio
Regulationsandtechnicalfacilitiesatdisposal.
Onsimilargrounds,Article4ofthe1966HelsinkiRulesontheUsesoftheWatersof
InternationalRivers,speaksaboutthereasonableandequitableshareinthe
beneficialusesofthewater..andfurtherArticle5goesontostatethatwhatis
reasonableandequitablesharemustbedeterminedinthelightofalltherelevant
factorsineachparticularcase.
Additionally,the1974UNGeneralAssemblyDeclarationontheEstablishmentofa
NewInternationalEconomicOrderalsotalksaboutcooperationoftheState
membersoftheInternationalCommunity,basedonequitywherebytheprevailing
disparitiesintheworldmaybebanishedandprosperitysecuredforall.

Historically,therehasbeennumerousinstanceswhereinthetribunalwasgrantedthe
mandatetojudgeaccordingtoequity.UndertheJayTreaty179410,theCommissions
weretodecidetheclaimsinquestionaccordingtothemeritsoftheseveralcases,
andtojustice,equityandthelawofnations.
IntheOrinocoSteamshipArbitrationbetweentheUnitedStatesandVenezuelain
1910,thetribunalwastodetermine,decideandmakeitsaward,inaccordancewith
justiceandequity.Similarly,in1892,thecaseofthesteamshipsHero,Nutriasand
SanFernandobetweentheUnitedStatesandVenezuela,wastobedecidedin
accordancewithjusticeandequityandtheprinciplesofinternationallaw.Inthe
NorwegianShipownersClaimsarbitration(1922)too,thetribunalwastoexamine
anddecidetheclaimsinaccordancewiththeprinciplesoflawandequity(Article
1).11TheCayugaIndianscase(UnitedKingdomv.UnitedStatesofAmerica,1926)
wasalsotobedecidedinaccordancewithtreatyrights,andwiththeprinciplesof
internationallawandequity.TheGranChacoconflictconcerningtheborderdispute
betweenBoliviaandParaguay(193238),whichhadledtoabloodywar,wassettled
byanexaequoetbonoarbitralawardin1938.12

10TreatyofAmityCommerceandNavigation,JaysTreaty1794,availableat:
http://avalon.law.yale.edu/subject_menus/jaymenu.asp,lastaccessedon:10thMarch2015.
11Norwayv.UnitedStatesofAmerica,PermanentCourtofArbitration,TheHague13Oct.1922,
http://legal.un.org/riaa/cases/vol_I/307346.pdf.
12RuthLapidoth,EquityinInternationalLaw,ProceedingsoftheAnnualMeeting(American
SocietyofInternationalLaw),Vol.81,availableat:http://www.jstor.org/stable/25658357,Last
accessedonMar.11,2015.

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