Introduction

The subject of remedies in international arbitration is generating considerable discussion. And perhaps no two issues have garnered more attention than those of punitive damages and interest. But what do they have in common? On the surface, not much. Punitive damages are awarded primarily to punish especially wrongful conduct, not to compensate an injured party.[1] In contrast, interest is a sum given for the loss of use of monies owed; its main purpose is to fully compensate the aggrieved party for all damage caused by the breach.[2] However, in international arbitrations, ...