Marvin Feldman v. Mexico

42 I.L.M. 625 (2003)

From our private database of 46,100+ case briefs, written and edited by humans—never with AI.

Marvin Feldman v. Mexico

International Centre for Settlement of Investment Disputes
42 I.L.M. 625 (2003)

Facts

Marvin Feldman (plaintiff), a United States citizen, owned a Mexican corporation, CEMSA, which bought cigarettes in Mexico (defendant) from stores for export. The only other cigarette-exporting companies belonged to the Poblano Group. Mexican law provided a rebate for the tax of cigarettes that were exported. To get the rebate, the invoice for the purchase of the cigarettes had to show the amount of tax paid for the production and first sale of the cigarettes separately from the total purchase price. Only manufacturers had access to invoices that showed the amount of the taxes paid. Stores were not provided an invoice that itemized the taxes. Manufacturers would not sell to any exporters or provide the required tax information; therefore, it was impossible for any exporter to provide the required documentation to receive the rebate. Still, Mexico paid rebates to CEMSA for several years and to Poblano Group. Eventually, Mexico stopped providing rebates to CEMSA and demanded repayment of past rebates. Mexico continued to pay rebates to Poblano Group and never sought repayment. Additionally, a new law required cigarette exporters to register with the state. CEMSA filed for arbitration under the North American Free Trade Agreement (NAFTA), asserting that Mexico expropriated its investment by withholding the rebate and violated the national-treatment provision by favoring Poblano Group. After the arbitration filing, Mexico audited and then denied CEMSA’s registration. Meanwhile, Mexico accepted Poblano Group’s registration.

Rule of Law

Issue

Holding and Reasoning ()

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 748,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 748,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,100 briefs, keyed to 987 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 748,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,100 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership