NEWSLETTER-2017

188 NEWSLETTER 2017 Moral Damages Claim in Investment Arbitration* Att. Tilbe Birengel Introduction Compensation for moral damages in disputes to be resolved be- fore an arbitral tribunal is a substantial topic. This Article covers the issue of moral damages claims in investment arbitration in light of significant arbitral awards ruled on this matter. In some cases, it is harder for the decision-makers to rule on com- pensation for moral damages due to its subjective nature. It is often argued that the distinction between material and moral damages blurs in some circumstances 1 . Below, the details of moral damages claims in investment arbitration will be examined under two sections according to the claimant of the moral damages which may be either the investor or the host state. The Cases in Which the Investor Requests Compensation for Moral Damages It is observed that, more often investors request compensation for their moral damages from the host states before arbitral tribunals. However, this request is very rarely accepted. Desert Line Projects LLC v. Republic of Yemen The Desert Line LLC v. Yemen is a major investment dispute in which the investor requested compensation for its moral damages 2 . * Article of June 2017 1 Patrick Dumberry, “ Satisfaction as a Form of Reputation for Moral Damages Suffered by Investors and Respondent States in Investor-State Arbitration Dis- putes ”, Journal of International Dispute Settlement, 2012, p.5. 2 Desert Line Projects LLC v. Republic of Yemen, ICSID Case No. ARB/05/17, Award, February 6th, 2008, available at: https://icsid.worldbank.org/en/Pages/