3 Valuation Standards and Criteria
- Compensation — Damages — Reparations — Customary international law — Valuation
This chapter gives an outline of the legal framework of compensation and damages in international investment law. Starting from the standard of compensation upon expropriation under international law it analyses the difference between lawful and unlawful expropriations. It then examines the criteria for valuation in cases of State responsibility and breaches of contract. Furthermore, it addresses the appropriate valuation date as well as the issues of contributory negligence and the duty to mitigate damages. Finally, it discusses the question to what extent equitable considerations and the respondent State’s economic situation should have an influence on the financial outcome of the award.