Question
ParkRUs Ltd (ParkRUs) is a Canadian corporation with principal business activity consisting of the development and operation of parking facilities. ParkRUs wholly owns Parking Inc
ParkRUs Ltd (ParkRUs) is a Canadian corporation with principal business activity consisting of the development and operation of parking facilities. ParkRUs wholly owns Parking Inc (Parking), a US subsidiary. Parking entered into an agreement with the municipality of Tucson, Arizona, to construct and operate car parks in the city. Parking had spent months and thousands of dollars preparing the proposal and had obtained other necessary permits from the state authorities to operate the car park. The municipality rejected Parking's first proposed project to build and operate a parkade in the city centre. The municipality advised that the project situated in the city centre and in a culturally protected area designated by the federal government. However, according to Parking, the city authorized another investor, a local company, to build parking facilities in the same location in the city centre despite the federal-protection designation.
Parking brought a claim under Chapter 11 of NAFTA alleging that the US violated a number of its NAFTA obligations and claiming damages that arose therefrom. Parking likely claimed a breach of which NAFTA provisions? Why?
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