It seems that investment arbitration is recently at it’s peak. That kind of dispute resolution distinguishes a tradition coming many centuries back. Considering that phenomenon it seems that particular doctrines and policies can be specified as crucial factors in the development of that legal institution. The paper is an attempt to identify the following factors and reveal the efforts of Latin American and European jurists in forming the modern investment arbitration system. For the purpose of the paper the Authors also discussed the background of specific disputes which were exemplified to show how resolution of these disputes affected legal thought and the evolution of investment arbitration.