NEWSLETTER-2017

189 ARBITRATION LAW The dispute stemmed from the physical duress, coercion and intimi- dation exercised by the Yemen forces on the officials of the Omani company Desert Line LLC during asphalt road construction. In 2005, the Claimant Desert Line LLC commenced proceedings before the International Center for Settlement of Investment Disputes (“ICSID”) and alleged violation of the fair and equitable treatment provision in the Yemen Republic - Oman Bilateral Investment Treaty (“BIT”) 3 . The arbitral tribunal concluded that, the psychological suffering experienced by the Desert Line’s officers derived from the threatening and harassment by the Yemen armed forces and these illegal actions have caused loss of credit and reputation for the Claimant 4 . Hence, the arbitral tribunal granted the moral damages claim, including loss of reputation, which became the first example of an award accepting moral damages claim 5 . Pey Cassado v. Republic of Chile Another notable case in which the arbitral tribunal assessed the moral damages claim is Pey Cassado v. Republic of Chile 6 . The dis- pute had occurred due to the confiscation of a Chilean newspaper in 1973 by the military junta in which the Claimant Pey Cassado was a shareholder. The Claimant returned to Spain after a military coup and cases/casedetail.aspx?CaseNo=ARB/05/17, (“Desert Line Kararı”). 3 Matthew Parish / Annalise Newlson / Charles Rosenberg, “Awarding Moral Dam- ages to Respondent States in Investment Arbitration”, Berkeley Journal of Inter- national Law, 225, 2011, p.232. 4 Desert Line Award, par. 290. 5 Bernd Ehle / Martin Dawidowicz, “ Chapter 10: Moral Damages in Investment Arbitration, Commercial Arbitration and WTO Litigation ”, Jorhe A. Huerta – Goldman / Antoine Romanetti, WTO Litigation, Investment Arbitration and Commercial Arbitration, Global Trade Law Series, Vol. 43, Kluwer Law Interna- tional 2013, p.302; Marc Allepuz , “Moral Damages in International Investment Arbitration”, Spain Arbitration Review, Vol. 2013, p.7. 6 Victor Pey Cassado and President Allende Foundation v. Republic of Chile, IC- SID Case ARB/98/2, Award May 8th, 2008, available at: https://icsid.worldbank . org/en/Pages/cases/casedetail.aspx?CaseNo=ARB/98/2 (“Pey Cassado Award”). The Salvador Allende Foundation was donated by the 90% of Mr. Pey Cassado’s shares, hence was party to the dispute.