NEWSLETTER-2017

191 ARBITRATION LAW by reasoning that the material facts of the dispute do not constitute “exceptional circumstances” 10 . Accordingly, the tribunal ruled that the exceptional circumstances under which an investor may be awarded moral damages are: • “the State’s actions imply physical threat, illegal detention or other analogous situations in which the ill-treatment cont- ravenes the norms according to which civilized nations are expected to act; • the State’s actions cause a deterioration of health, stress, an- xiety, other mental suffering such as humiliation, shame and degradation, or loss of reputation, credit and social position; and • both cause and effect are grave or substantial. 11 ” The tribunal concluded that even if the treatment of the Ukrainian authorities may be considered as loss of reputation, it still would not give rise to moral damages since the damage did not meet the three standards required. The Desert Line and Pey Cassado awards played vital role in the assessment of the tribunal. The moral damages experienced in this case were not found to be as grave as the one in the Desert Line and the material damages compensation awarded was found to be sufficient enough to cover both moral and material injuries faced with a similar reasoning given in the Pey Cassado award 12 . This award plays a vital role in order to observe the mentality of the arbitral tribunals related to the moral damages claims. The Cases in Which the Host State Requests the Compensation the Moral Damages The moral damages claim in the investment disputes may be re- viewed from another aspect by the case law in which the Republic of Turkey as the host state requested compensation of its damages. 10 Dumberry, p. 22. 11 Lemire Award, par. 333. 12 Lemire Award, par. 339.