Notion of the Duty to Mitigate Damages Along with contributory negligence, a duty to mitigate damages is considered as a “compensation-reducing”[1] factor. However, contrary to contributory negligence, the duty to mitigate damages arises only after the breach of an international obligation. It implies an obligation for an aggrieved party to “take steps to minimize his loss, on […]
Damages in Arbitration
Damages in Investment Arbitration
The recovery of damages in investment arbitration is a multi-layered and complex issue. You do not need to be an expert, however, to understand the most important concepts. Introduction and Basic Principles The root of all claims for damages under public international law is the Chorzów case. In it, the Permanent Court of International Justice (the predecessor […]
BG GROUP PLC. V. REPUBLIC OF ARGENTINA – CASE NO. U.S. 12-138 (2014) – U.S. SUPREME COURT
In this dispute, the Claimant was part of a consortium owning majority shares in MetroGas, for the distribution of natural gas in Buenos Aires. Before the 2001 financial crisis, Argentinean law provided that gas tariffs were calculated in US dollars for profitable returns. However, the crisis led to emergency measures, one of which implemented a […]
Irreparable Damage and Interim Measures: ENCANA CORP. v. GOVERNMENT OF THE REPUBLIC OF ECUADOR (LCIA, Interim Award, Request for Interim Measures of Protection – 2004)
In the well-known case Encana v. Ecuador, the Arbitral Tribunal refused to order interim measures on the basis of there being no irreparable damage. On January 8, 2004, Claimant requested an urgent hearing of an application for interim relief regarding the enforcement of certain measures that the Ecuadorian government had taken against one of its […]
Supplementation of an Arbitration Award under the ICSID Convention
The supplementation of an arbitration award under Article 49(2) of the ICSID Convention is a remedy for inadvertent omissions in the award due to an oversight on the part of the tribunal which is likely to be corrected by it once this oversight is pointed out. This oversight should however concern a “question” before the […]
Restitution in Investment Arbitration
In case of outright expropriation or the creeping expropriation of an investment, or of a harm caused by wrongful acts committed by a host State, restitution in investment arbitration is possible, amongst other remedies. The foreign investor can request an arbitral tribunal to order the State to fully repair the injuries it has causes. The […]
