NEWSLETTER-2017

192 NEWSLETTER 2017 The main distinction of these awards is that, the host state ground- ed its moral damages allegations on the investor’s misconduct, namely the “abuse of process” during the arbitration proceedings. Europe Cement v. the Republic of Turkey Europe Cement v. the Republic of Turkey is a dispute that arose between a Polish company Europe Cement and the Republic of Tur- key, in which the Claimant Europe Cement commenced arbitral pro- ceedings before the ICSID by alleging violation of the Energy Charter Treaty 13 by the Republic of Turkey 14 . The dispute had occurred due to the damages claim of the Claim- ant based on the confiscation of the property and annulment of the concession contracts of Cukurova Elektrik A.S. (“CEAS”) and Kepez Elektrik Turk A.S.’nin (“Kepez”) by the Republic of Turkey. The Claimant who alleged to own shares of CEAS and Kepez commenced arbitral proceedings before ICSID. However, the Arbitral Tribunal concluded that the evidence provided by the Claimant are counterfeit, which had shown that the Claimant had never been an investor, hence the arbitral tribunal reject- ed the dispute due to incapacity. The notable part of the dispute is that, the Republic of Turkey as the Respondent requested compensation of its moral damages due to unlawfully commenced proceedings by the Claimant in bad faith which had harmed its host state reputation. However, the moral damages claims of the Respondent were rejected by the tribunal 15 . The tribunal grounded the rejection of the moral damages claim by stating that leaving the arbitration costs on the Claimant compensates the damage it caused by deceit and abuse of process, that ruling on 13 Published in the Official Gazette dated July 12th, 2000 numbered 24107. 14 Europe Cement Investment and Trade S.A. v. Republic of Turkey, ICSID Case No. ARB(AF)/07/2, Award: August 13th, 2009, available at: https://icsid.worldbank . org/en/Pages/cases/casedetail.aspx?CaseNo=ARB(AF)/07/2; Marc Allepuz , p. 9. 15 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.236; Champagne, p. 31.