Mohammad Jafar Ghanbari Jahromi; Mansour Vesali Mahmoud
Abstract
Quantum of damages is one of the most important aspects of proceedings in
investment arbitration. Assessment of damages in investment treaty claims
occasionally requires adjustment and reduction of damages under certain
circumstances and situations. This could be explained by the impact of other
rules ...
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Quantum of damages is one of the most important aspects of proceedings in
investment arbitration. Assessment of damages in investment treaty claims
occasionally requires adjustment and reduction of damages under certain
circumstances and situations. This could be explained by the impact of other
rules of international law on the assessment of responsibility and damages in
investment claims. The investment arbitration’s jurisprudence indicates the
relevance of investor's behaviorand practice after and before the breach of
investment treaty standards by the host State to the determination of damages.
Investment treaty obligations are, in principle, intended to exclusively protect
qualified investors. However, conduct and practice of investor in the course of
the investment activity in the host State has to be taken into account at the final
stage of determination of compensation. In addition, contribution to the injury
and non-compliance with the duty to mitigate the loss are the post-breach
considerations potentially relevant to the reductionof damages arising out of
investment treaty breaches.
Taking into account damage-reducing factors is the potential source of
development of the rules of remedies/compensationin investment treaty
arbitration as well as the overall promotion of legitimacy of investment
arbitration system.
