Journal of International Arbitration

Volume 25 (2008)

Volume 25 (2008) / Issue 1

Manuel A. Abdala, Pablo T. Spiller, 'Chorzów’s Standard Rejuvenated: Assessing Damages in Investment Treaty Arbitrations' (2008) 25 Journal of International Arbitration, Issue 1, pp. 103–120


Whereas damages in treaty arbitration disputes are usually valued at the date when the measures trigger a violation, Chorzów’s compensation standard provides the alternative to value as of the date of the award. The latter is critical when investors continue to operate the business, such as in indirect expropriation as well as unjust and inequitable treatment cases. Implementing Chorzów’s standard to indirect takings allows the use of ex-post information to capture any elevated value due to improved business conditions. In addition, it deters states from acting opportunistically, by not allowing them to profit from foreign investors when business conditions are expected to improve. Arbitration panels should properly implement Chorzów’s standard with renovated thrust.

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ISSN: 0255-8106
ID: JOIA2008005