Study On Moral Damages In International Investment Arbitration

In recent years, moral damages have been frequently requested in internationalinvestment arbitration by investors and the host country, becoming an emerging hot issues ofthe international investment field.So far, ICSID and other kinds of international investmentarbitration agencies have ruled investment arbitration cases involving moral damages as manyas19pieces, among which only two cases awarded by the ICSID arbitration in favor of theinvestors, none of these cases awarded in favor of host country. As international economicactivities going further and more widely, investment disputes between investors and countriesinevitably involve parties’ moral damage problem. It’s of great significance to exerciseempirical analysis on existing investment arbitration cases and develope the moral damagecompensation components for international investment dispute in arbitration, so as to providea referent analysis methods for arbitration tribunal in determining the liability and amount ofcompensation for mental injury, to strengthen the foreseeability of the result of internationalinvestment dispute for the parties who demand moral damages.This thesis is about forty thousand words, falling into five parts, disregarding the prefaceand epilogue.The first part: General overview of the moral damages in the international investmentarbitration. This part firstly examines the concept of the moral damage in the field ofinternational investment dispute arbitration, and clarifies the features of which. Then, howmoral damages should be remediated by arbitral tribunals in the specific context of investor—state arbitration is discussed. Generally, monetary compensation is the appropriate remedy formoral damage affecting an individual while satisfaction is the proper means of reparation forsuch damage caused to a state directly.The second part: Introduction of the existing cases of moral damages in internationalinvestment arbitration.This part gives a general overview and brief analysis of the existing cases relating with moral damages in international investment arbitration through the formand data. Furthermore, this article make a detailed introduction of some exploratory andvaluable ones about the case facts and the arbitration tribunal reasoning process carried on.The third part: Jurisdiction of the moral damages in the international investmentarbitration. The jurisdiction of moral damages proposed by investors and host countries isrespectively analyzed in detail in this part, such as, whether the mental damage compensationdispute is directly resulted from the investment legal disputes, whether the arbitration tribunalhave jurisdiction for moral damage that suffered by the administrative staff of the investor orthe independent violation of human rights, and so on.The fourth part: The components for determining the moral damages in the internationalinvestment arbitration. Combining the arbitration practice in the second part with the theoryof torts, this part puts forward three components for determining the moral damages in theinternational investment arbitration. This part discuss the improper behavior, mental injuryconsequence, the causal relationship between improper behavior and injury consequence, aswell as the subjective fault in detail, so as to provide a referent ideas for the arbitrationtribunal to deal with moral damages in the future international investment dispute.The fifth part: The determination of the amount of the moral damages in internationalinvestment arbitration.This part puts forward three principles in determining the amount of themoral damages in the international investment arbitration, namely the full compensationprinciple, discretion principle and taking with other non-monetary compensation methodsprinciple.Then, by discussing the commonly used methods in quantum, the factors ought to beconsidered and certain special notes, this article establishes the specific rules for the quantumof the moral damages in the international investment arbitration.