NEWSLETTER-2017
190 NEWSLETTER 2017 commenced arbitral proceedings before the ICSID in 1997 and alleged violation of the Chile – Spain BIT. The arbitral tribunal who granted material damages claim to the Claimant, refused to award any compensation for the moral damages claim by stating that the Claimant failed to provide sufficient proof for evaluation of moral damages 7 . The arbitral tribunal added that, the ruling on the compensation of material damages against the Rupublic of Chile, has provided sufficient moral satisfaction for the moral dam- ages claimed to be suffered. This award clearly reveals the relativity of moral damages con- cept in the eyes of the tribunals in addition to the possibility of widen- ing the scope of granting material damages in a way to cover the moral sufferings as well. Lemire v. Ukraine Lemire v. Ukraine is a notable example of investment disputes in which the arbitral tribunal assessed the moral damages claim and set forth several principles to grant so 8 . The dispute had stemmed from the accusations of an American radio broadcasting investor Claim- ant Lemire who affirmed that the Ukrainian broadcasting authorities rejected his new radio frequency applications unfairly. Hence, the Claimant commenced arbitral proceedings before the ICSID in 2006, alleged violation of the USA – Ukraine BIT and requested compensa- tion for his material and moral damages. In its 2010 dated initial award on jurisdiction, the arbitral tribunal who referred to the Desert Line award had concluded that the investors are eligible to claim moral damages in light of the BITs. However, the tribunal who accepted the material damages claim refused to grant compensation for moral damages claim in its 2011 dated final award 9 7 Pey Cassado Award, par. 243; Dumberry, p.20; Ehle / Dawidowicz, p. 305. 8 Joseph C. Lemire v. Ukraine, ICSID Case No. ARB/06/18, Award on Jurisdiction and Liability: January 14th, 2010, available at: https://icsid.worldbank.org/en/ Pages/cases/casedetail.aspx?CaseNo=ARB/06/18; Antoine Champagne , “ Mor- al Damages Left in Limbo ”, McGill Journal of Dispute Resolution, 2015, p. 25. 9 ICSID Case No. ARB(AF)/98/1, Award: March 28th, 2011, available at: https:// icsid.worldbank.org/en/Pages/cases/casedetail.aspx?CaseNo=ARB (AF)/98/1.
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