Introduction

This tension between the justified expectations of foreign investors and the necessity of maintaining the legitimacy of the investment arbitration system highlights the need for both clarity and a degree of precision in the determination of damages and compensation in investment treaty arbitrations. This article pursues such clarity and precision by reviewing recent major developments in arbitral practice, looking at both the legal doctrines that establish differing standards of compensation and damages for lawful and unlawful acts by State Parties and the methods ...