Satisfaction as a Form of Reparation for Moral Damages Suffered by Investors and Respondent States in Investor-State Arbitration Disputes
Bibliographic record
Abstract
The question examined in this article is how moral damages should be remediated by arbitral tribunals in the specific context of investor-State arbitration. In other words, is the best remedy satisfaction or monetary compensation? The article first examines the issue of reparation for moral damages under general international law, and specifically the different forms that the remedy of satisfaction may take. Under international law, monetary compensation is the appropriate remedy for moral damages affecting an individual while satisfaction is the proper means of reparation for such damages caused to a State directly. The article then examines recent investor-State arbitration cases. They also show that monetary compensation is the appropriate remedy for moral damages affecting an individual or a corporation. Two recent cases (<it>Pey Casado v Chile</it> and <it>Lemire v Ukraine)</it> raise the question whether or not a tribunal established under a BIT could remediate moral damages suffered by a foreign investor with satisfaction (in the form of a declaration of wrongfulness) instead of monetary compensation. This issue has never been addressed in the doctrine. In our view, satisfaction is not the proper method of remediation in this context. In two other recent cases (<it>Europe Cement v Turkey</it> and <it>Cementownia v Turkey</it>), Turkey sought an award of monetary compensation for moral damages it allegedly suffered with regards to its ‘reputation and international standing’ as a result of baseless claims filed by the foreign investors. These cases raise the unprecedented issue, never addressed in doctrine, of the appropriate remedy to redress any moral damages <it>suffered by a State</it> in the context of international investment law. In our view, satisfaction, in the form of a declaration of wrongfulness, would be the most appropriate form of reparation in this context. This article examines the circumstances under which moral damages may occur by distinguishing investor's misconduct in the general context of its investment in the host State from those arising in the specific context of investor-State arbitration proceedings. We conclude that the issue of moral damages suffered by a State in the context of international investment law is unlikely to frequently arise and that, in any event, under most BITs, arbitral tribunals will simply not have jurisdiction over any such claims raised by a respondent State.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.003 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".