Supplemental Compensation

Borzu Sabahi

in Compensation and Restitution in Investor-State Arbitration

Published in print June 2011 | ISBN: 9780199601189
Published online September 2011 | e-ISBN: 9780191729201 | DOI:

Series: International Economic Law Series

Supplemental Compensation

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In addition to compensation or restitution for material damage, supplemental compensation is necessary to put the victim of an unlawful act fully in the hypothetical position that would exist save for the wrongful act. Supplemental compensation in this book refers to compensation for moral damage (including legal damage), interest, damage caused as a result of currency fluctuations, and arbitration costs. These heads of damages are grouped together as supplemental damages as none of them directly relates to the main material damage done to the investment but may be an integral part of full compensation. This chapter discusses the principles relating to each of these heads of supplemental damage, along with their use in investment treaty arbitration. Punitive damages and the currency of compensation in investment treaty arbitration are also discussed.

Keywords: supplemental compensation; moral damage; interest; arbitration costs; punitive damages; currency

Chapter.  20560 words. 

Subjects: Public International Law

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