Columbia International Affairs Online: Policy Briefs

CIAO DATE: 02/2013

The compensatory nature of moral damages in investor-state arbitration

Jarrod Wong

February 2013

Columbia Center on Sustainable Investment


The failure of investment tribunals to grasp the compensatory nature of moral damages awarded to investors has led to doctrinal and practical difficulties in the treatment of moral damages. Many such difficulties can be addressed by identifying the specific moral injury suffered -- whether mental or reputational -- and awarding commensurate compensation rather than satisfaction, restitution or punitive damages.