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Oxford Law Citator
Contents
Expand All
Collapse All
Preliminary Material
General Editor’s Preface
General Editor’s Preface for the First Edition
Preface
Contents—Summary
Contents
Table of Cases
European Court of Human Rights
Court of Justice of the European Union
ICSID Tribunals
Inter-American Court of Human Rights
International Court of Justice, Permanent Court of Int Ernational Justice
International Tribunal for the Law of the Sea
Iran–United States Claims Tribunal
NAFTA Tribunals
Other International Arbitral Tribunals or Claims Commissions
National Cases
Australia
Canada
France
Germany
Netherlands
United Kingdom
United States
Table of Legislation and Instruments
European Instruments
National Legislation
Austria
Equador
Germany
Iran
Kuwait
Libya
Mexico
Switzerland
United States of America
Venezuela
Trade Agreements
Treaties and Conventions
UN Instruments
List of Abbreviations
Main Text
1 Introduction
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
2 The Function of Compensation and Damages
Preliminary Material
2.01
2.02
A Distinct Functions of Compensation and Damages
2.03
2.04
2.05
2.06
2.07
2.08
2.09
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
(1) Compensation
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30
2.31
(2) Damages
2.32
2.33
2.34
2.35
2.36
B The Functions in Detail
2.37
(1) The Function of Compensation upon Expropriation under International Law
2.38
(a) Full Reparation?
2.39
2.40
2.41
2.42
2.43
2.44
2.45
2.46
2.47
2.48
2.49
2.50
2.51
2.52
2.53
2.54
(b) Restitution of Value
2.55
2.56
2.57
2.58
2.59
2.60
2.61
2.62
2.63
2.64
2.65
2.66
2.67
2.68
2.69
2.70
2.71
2.72
(2) The Function of Damages
(a) Reparation
2.73
2.74
2.75
(i) Violations of International Law
2.76
2.77
2.78
2.79
2.80
2.81
(ii) Breaches of Contract
2.82
2.83
2.84
2.85
2.86
2.87
2.88
2.89
2.90
2.91
2.92
(b) Punishment?
2.93
2.94
2.95
2.96
C Consequences for the Calculation
2.97
(1) Objective–abstract Valuation
2.98
2.99
2.100
2.101
(2) Subjective–concrete Valuation
2.102
2.103
2.104
2.105
2.106
2.107
2.108
2.109
2.110
2.111
2.112
2.113
2.114
2.115
2.116
2.117
(3) Selection of a Valuation Method
2.118
2.119
2.120
3 Valuation Standards and Criteria
Preliminary Material
3.01
A Compensation upon Expropriation
3.02
3.03
3.04
3.05
(1) The Standard of Compensation
3.06
(a) Customary International Law
3.07
3.08
3.09
3.10
3.11
3.12
3.13
3.14
(b) International Treaty Law
3.15
3.16
3.17
3.18
3.19
3.20
3.21
3.22
3.23
(c) International Jurisprudence
3.24
3.25
3.26
3.27
3.28
3.29
3.30
3.31
(2) The Role of Compensation for the Lawfulness of the Expropriation
3.32
3.33
3.34
3.35
3.36
3.37
3.38
3.39
3.40
3.41
3.42
3.43
3.44
3.45
3.46
3.47
3.48
3.49
3.50
3.51
3.52
3.53
3.54
3.55
(3) Can Indirect Expropriations ever be Lawful?
3.56
3.57
3.58
3.59
3.60
3.61
3.62
(4) Violation of Stabilization Clauses
3.63
3.64
3.65
3.66
3.67
3.68
3.69
3.70
3.71
3.72
3.73
3.74
3.75
3.76
3.77
3.78
3.79
3.80
(5) The Difference between Lawful and Unlawful Expropriations
3.81
3.82
3.83
(a) Lucrum Cessans ?
3.84
3.85
3.86
3.87
3.88
3.89
3.90
3.91
3.92
3.93
3.94
3.95
3.96
(b) Punitive Damages?
3.97
3.98
3.99
3.100
3.101
(c) Compensation versus Reparation
3.102
3.103
3.104
3.105
3.106
3.107
3.108
3.109
3.110
3.111
3.112
3.113
3.114
3.115
3.116
3.117
3.118
B Reparation and Damages
3.119
(1) Violations of International Law
3.120
3.121
3.122
3.123
3.124
3.125
3.126
3.127
3.128
3.129
3.130
(a) Subjective–concrete Valuation
3.131
3.132
3.133
3.134
3.135
3.136
3.137
3.138
3.139
3.140
3.141
3.142
3.143
3.144
3.145
3.146
3.147
3.148
3.149
3.150
3.151
3.152
3.153
3.154
3.155
3.156
3.157
(b) Objective–abstract Valuation
3.158
(i) Argumentum e maiore ad minus and Analogy
3.159
3.160
3.161
3.162
3.163
3.164
3.165
3.166
3.167
3.168
3.169
3.170
3.171
(ii) Submissions of the Parties
3.172
3.173
(2) Breaches of Contract
3.174
3.175
3.176
3.177
3.178
3.179
(a) Damnum Emergens and Lucrum Cessans
3.180
3.181
3.182
3.183
3.184
3.185
3.186
3.187
3.188
3.189
3.190
3.191
3.192
3.193
3.194
3.195
3.196
3.197
3.198
3.199
3.200
3.201
(b) Reliance Interest and Compliance Interest
3.202
3.203
3.204
3.205
3.206
3.207
3.208
(c) Rejection of Lost Profits
3.209
3.210
(i) Profits too Speculative
3.211
3.212
3.213
3.214
3.215
3.216
(ii) Implicit Termination of Contract
3.217
3.218
3.219
3.220
3.221
(iii) Force Majeure
3.222
3.223
3.224
(d) Damages for Lost Opportunities?
3.225
3.226
3.227
3.228
3.229
3.230
3.231
(3) Simultaneous Violation of International and Contractual Obligations
3.232
3.233
3.234
3.235
3.236
3.237
3.238
3.239
3.240
(4) Reasons for Reducing the Amount of Damages
3.241
(a) Contributory Negligence
3.242
3.243
3.244
3.245
3.246
3.247
3.248
3.249
3.250
3.251
3.252
3.253
3.254
(b) Mitigation of Damages
3.255
3.256
3.257
3.258
3.259
3.260
3.261
3.262
3.263
3.264
3.265
C The Valuation Date
3.266
3.267
3.268
(1) The Valuation Date in Expropriation Cases
3.269
(a) Lawful Expropriations
3.270
3.271
3.272
3.273
3.274
3.275
3.276
3.277
3.278
3.279
3.280
3.281
3.282
3.283
3.284
(b) Unlawful Expropriations
3.285
3.286
3.287
3.288
3.289
3.290
3.291
3.292
3.293
3.294
3.295
3.296
3.297
3.298
3.299
3.300
3.301
3.302
3.303
3.304
3.305
(c) Indirect Expropriations
3.306
3.307
3.308
3.309
3.310
3.311
3.312
3.313
3.314
3.315
3.316
3.317
3.318
3.319
3.320
3.321
(2) The Valuation Date in Other Cases
3.322
(a) Violations of International Law
3.323
3.324
3.325
3.326
3.327
3.328
3.329
3.330
3.331
3.332
(b) Breaches of Contract
3.333
3.334
3.335
3.336
3.337
3.338
3.339
3.340
3.341
3.342
D The Exercise of Discretion and Equity Considerations
3.343
3.344
3.345
3.346
3.347
(1) Estimation and Equity
3.348
3.349
3.350
3.351
3.352
3.353
3.354
3.355
3.356
3.357
3.358
3.359
(2) Relevance of the Respondent’s Economic Situation
3.360
3.361
3.362
3.363
3.364
3.365
3.366
3.367
3.368
3.369
3.370
3.371
3.372
3.373
4 International Standards, Bases of Value, and Valuation Approaches
Preliminary Material
4.01
A International Standards
4.02
4.03
(1) International Valuation Standards
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11
4.12
(2) World Bank Guidelines
4.13
4.14
4.15
4.16
4.17
(3) MIGA
4.18
4.19
4.20
(4) UN Compensation Commission
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28
B Bases of Value
4.29
4.30
4.31
4.32
4.33
4.34
4.35
4.36
4.37
(1) Market Value Basis of Valuation
4.38
4.39
4.40
4.41
4.42
4.43
4.44
4.45
4.46
4.47
4.48
4.49
4.50
4.51
(2) Bases Other Than Market Value
4.52
4.53
(a) Investment Value or Worth
4.54
4.55
4.56
4.57
4.58
4.59
4.60
4.61
(b) Special Value, Synergistic Value, Price
4.62
4.63
4.64
4.65
4.66
4.67
4.68
4.69
(c) Contractual Value
4.70
4.71
4.72
C Valuation Approaches
4.73
4.74
(1) Market Approach
4.75
4.76
4.77
4.78
4.79
4.80
4.81
(a) Stock Prices
4.82
4.83
4.84
4.85
(b) Prior Transactions
4.86
(c) Multiples
4.87
4.88
(2) Income Approach
4.89
4.90
(a) Basis of Income: Profits, Earnings, Cash Flow?
4.91
4.92
4.93
4.94
(b) Going Concern
4.95
4.96
4.97
(c) Forecasting
4.98
4.99
4.100
4.101
4.102
4.103
(d) Discounting
4.104
(i) Basic Principles
4.105
4.106
4.107
4.108
4.109
4.110
4.111
4.112
4.113
4.114
4.115
4.116
4.117
4.118
(ii) The Capital Asset Pricing Model (CAPM)
4.119
4.120
4.121
4.122
4.123
4.124
(iii) Inflation
4.125
4.126
4.127
(iv) Country Risk
4.128
4.129
4.130
4.131
4.132
4.133
(3) Asset-Based or Cost Approach
4.134
4.135
4.136
4.137
4.138
(a) Book Value
4.139
4.140
4.141
4.142
4.143
4.144
4.145
4.146
4.147
4.148
4.149
(b) Replacement Value
4.150
4.151
4.152
(c) Liquidation Value
4.153
4.154
4.155
4.156
4.157
D Transparency
4.158
4.159
4.160
E Experts in Arbitration Proceedings
4.161
4.162
4.163
4.164
4.165
4.166
4.167
4.168
4.169
4.170
5 Methods of Valuation in International Practice
Preliminary Material
A Market or Sales Comparison Approach
5.01
5.02
5.03
(1) Stock Prices
5.04
5.05
5.06
5.07
5.08
5.09
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17
5.18
5.19
5.20
(2) Prior Transactions
5.21
5.22
5.23
5.24
5.25
5.26
5.27
5.28
5.29
(3) Offerings
5.30
5.31
5.32
5.33
5.34
5.35
5.36
(4) Partial Sales
5.37
5.38
5.39
5.40
5.41
5.42
5.43
(5) Comparable Sales
5.44
5.45
5.46
5.47
5.48
5.49
5.50
5.51
5.52
5.53
5.54
5.55
(6) Comparable Companies and Multiples
5.56
5.57
5.58
5.59
5.60
5.61
5.62
5.63
5.64
5.65
B The Income Approach
5.66
5.67
5.68
5.69
5.70
5.71
5.72
5.73
5.74
5.75
5.76
5.77
5.78
5.79
5.80
5.81
(1) Basis of Income: Profits, Earnings, Dividends, Cash Flows?
5.82
5.83
5.84
5.85
5.86
5.87
5.88
(2) Going Concern
5.89
5.90
5.91
5.92
5.93
5.94
5.95
(3) Forecasting
(a) Analysis of Past Performance
5.96
5.97
5.98
5.99
5.100
5.101
(b) Value Drivers
5.102
5.103
5.104
5.105
5.106
5.107
5.108
5.109
5.110
(c) Business Plans
5.111
5.112
5.113
5.114
5.115
5.116
(d) Economic Circumstances
5.117
5.118
5.119
5.120
5.121
5.122
5.123
(e) Role of Contracts
5.124
5.125
(i) Adaptation of Contractual Provisions
5.126
5.127
5.128
5.129
5.130
5.131
5.132
5.133
5.134
(ii) Extension of Contracts
5.135
5.136
5.137
5.138
5.139
(f) Comparison of Two Future Scenarios—‘But for’ Approach
5.140
5.141
5.142
5.143
5.144
5.145
5.146
5.147
5.148
5.149
5.150
5.151
(g) Valuation Phases
5.152
5.153
5.154
5.155
5.156
(4) Discounting and Country Risk
5.157
5.158
5.159
5.160
5.161
5.162
5.163
5.164
5.165
5.166
5.167
5.168
5.169
5.170
5.171
5.172
5.173
5.174
5.175
5.176
5.177
5.178
5.179
5.180
5.181
(5) Inflation
5.182
5.183
5.184
5.185
5.186
(6) Reasons for Rejecting the Income Approach in International Practice
5.187
(a) Insufficient Past Performance
5.188
5.189
5.190
5.191
5.192
5.193
5.194
5.195
5.196
5.197
(b) No Future Prospects
5.198
5.199
(c) Divergence of Amount of Investment and Expected Profits
5.200
5.201
5.202
5.203
5.204
(d) Divergence of Submissions by the Parties
5.205
5.206
5.207
5.208
(e) The Financial Situation of the Company
5.209
5.210
5.211
(f) Valuation Procedure too Expensive
5.212
5.213
5.214
5.215
C The Asset-Based or Cost Approach
5.216
(1) Book Value
5.217
5.218
5.219
5.220
5.221
5.222
5.223
(a) Acceptance of Book Value for Particular Items
5.224
5.225
(b) Adjustment of Book Value
5.226
5.227
5.228
5.229
5.230
5.231
(c) ‘Sunk Investment’ and Wasted Costs
5.232
5.233
5.234
5.235
5.236
5.237
5.238
5.239
5.240
5.241
5.242
5.243
5.244
5.245
5.246
5.247
5.248
5.249
5.250
5.251
5.252
(2) Replacement Value
5.253
5.254
5.255
5.256
5.257
5.258
5.259
5.260
5.261
(3) Liquidation Value
5.262
5.263
5.264
5.265
5.266
5.267
5.268
5.269
5.270
5.271
5.272
5.273
D Other Approaches
5.274
(1) Mixed Methods
5.275
5.276
5.277
5.278
5.279
5.280
5.281
5.282
5.283
5.284
5.285
5.286
5.287
(2) Contract-based Valuation
5.288
5.289
5.290
5.291
5.292
5.293
5.294
5.295
5.296
(3) Court and Arbitral Decisions
5.297
5.298
5.299
5.300
5.301
(4) Insurance Value
5.302
5.303
5.304
5.305
5.306
(5) Tax Value
5.307
5.308
5.309
5.310
5.311
5.312
E Consequential Damages
5.313
5.314
5.315
5.316
(1) Liability to Subcontractors
5.317
5.318
5.319
5.320
5.321
5.322
(2) Costs for Damage Limitation, Repair, and Maintenance
5.323
5.324
5.325
5.326
(3) Costs and Expenses of Pursuing the Claim
5.327
5.328
5.329
5.330
5.331
5.332
5.333
5.334
5.335
5.336
5.337
5.338
5.339
5.340
5.341
F Moral Damages
5.342
5.343
5.344
5.345
5.346
5.347
5.348
5.349
5.350
5.351
5.352
5.353
5.354
5.355
5.356
5.357
5.358
5.359
5.360
5.361
5.362
5.363
5.364
5.365
5.366
5.367
5.368
5.369
6 Interest
Preliminary Material
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
A The Function of Interest
6.09
6.10
6.11
6.12
(1) ‘Prompt’ Compensation
6.13
6.14
6.15
6.16
6.17
(2) ‘Full’ Reparation
(a) State Responsibility
6.18
6.19
6.20
6.21
6.22
6.23
(b) Breach of Contract
6.24
6.25
6.26
6.27
(3) Prevention of Enrichment
6.28
6.29
6.30
6.31
6.32
6.33
6.34
(4) Improvement of Payment Practices
6.35
6.36
6.37
6.38
6.39
B Pre-award Interest
6.40
6.41
(1) Interest Rate
6.42
6.43
6.44
6.45
6.46
6.47
6.48
6.49
6.50
6.51
(a) Legal Interest
6.52
6.53
6.54
6.55
6.56
6.57
6.58
6.59
6.60
6.61
6.62
6.63
6.64
6.65
6.66
6.67
6.68
(b) Agreed Interest
6.69
6.70
6.71
6.72
6.73
6.74
6.75
6.76
6.77
(c) Borrowing Rate
6.78
6.79
6.80
6.81
6.82
(i) Prime Rate
6.83
6.84
6.85
6.86
6.87
6.88
6.89
6.90
(ii) Borrowing Rate of the Investor
6.91
6.92
6.93
6.94
6.95
6.96
(iii) Cost of Capital of the Investor
6.97
6.98
6.99
6.100
6.101
6.102
6.103
6.104
6.105
6.106
6.107
6.108
(iv) Borrowing Rate of the State
6.109
6.110
6.111
(v) Average Borrowing Rate
6.112
6.113
6.114
(d) Investment Alternatives
6.115
6.116
6.117
6.118
6.119
6.120
6.121
6.122
6.123
6.124
6.125
6.126
6.127
(e) Government Bonds
6.128
6.129
6.130
6.131
6.132
6.133
6.134
6.135
6.136
(f) Interbank Interest
6.137
6.138
6.138a
6.139
6.140
6.141
6.142
6.143
6.144
6.145
6.146
6.147
6.148
6.149
6.150
6.151
6.152
6.153
6.154
6.155
6.156
6.157
6.158
6.159
(g) ‘Fair’ Interest in Practice
6.160
(i) Expropriation Cases
6.161
6.162
6.163
6.164
(ii) Damages
6.165
6.166
6.167
6.168
6.169
6.170
6.171
6.172
(2) Dies a quo
6.173
(a) Expropriations
6.174
6.175
6.176
6.177
6.178
6.179
(b) State Responsibility
6.180
6.181
6.182
6.183
(i) Date of the Unlawful Act
6.184
6.185
6.186
(ii) Date of Occurrence of Damage
6.187
6.188
6.189
6.190
6.191
6.192
6.193
6.194
(iii) Date of Initiation of Legal Proceedings
6.195
6.196
6.197
6.198
(c) Breaches of Contract
6.199
6.200
6.201
(i) Date of Breach
6.202
6.203
(ii) Invoice Dates and Terms of Payment
6.204
6.205
6.206
6.207
6.208
6.209
6.210
6.211
(iii) Date of Reminder
6.212
6.213
6.214
6.215
6.216
6.217
(iv) Termination of Contract
6.218
6.219
(v) Date of Initiation of Legal Proceedings
6.220
(3) Compound Interest
6.221
6.222
6.223
(a) Repudiation in Early Cases
6.224
6.225
6.226
6.227
6.228
6.229
6.230
6.231
6.232
6.233
6.234
6.235
6.236
(b) Increasing Acceptance in Recent Jurisprudence
6.237
6.238
6.239
6.240
6.241
6.242
6.243
6.244
6.245
6.246
6.247
6.248
(c) Exceptions
6.249
6.250
6.251
6.252
6.253
6.254
6.255
6.256
6.257
6.258
C Post-award Interest
6.259
6.260
6.261
6.262
(1) Dies a quo
6.263
(a) Continuation of Pre-award Interest
6.264
6.265
6.266
6.267
(b) Date of the Award
6.268
6.269
6.270
6.271
6.272
6.273
(c) Grace Period
6.274
6.275
6.276
6.277
6.278
6.279
6.280
6.281
(2) Interest Rate
6.282
6.283
6.284
6.285
6.286
6.287
6.288
6.289
6.290
6.291
6.292
6.293
(3) Compound Interest
6.294
6.295
6.296
6.297
6.298
6.299
D Conclusions on Interest
6.300
6.301
6.302
6.303
6.304
6.305
6.306
6.307
6.308
6.309
7 Conclusions
Preliminary Material
7.01
7.02
7.03
7.04
A Interrelation between the Claim’s Legal Basis and the Valuation Basis
7.05
7.06
7.07
7.08
7.09
7.10
7.11
7.12
7.13
B The Choice of a Valuation Method
7.14
7.15
7.16
7.17
7.18
7.19
7.20
C Interest
7.21
7.22
7.23
7.24
7.25
7.26
7.27
7.28
7.29
7.30
7.31
Further Material
Appendix 1 Table of ICSID Cases since 2008
Appendix 2 Table of NAFTA Cases since 2008
Appendix 3 Table of ECT Cases since 2008
Appendix 4 Table of Ad hoc Investment Arbitration Cases since 2008
Bibliography
Index
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Table of Legislation and Instruments
From:
Calculation of Compensation and Damages in International Investment Law (2nd Edition)
Irmgard Marboe
Previous Edition (1 ed.)
Content type:
Book content
Product:
Investment Claims [IC]
Series:
Oxford International Arbitration Series
Published in print:
30 March 2017
ISBN:
9780198749936
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