INFLUENCES ON THE QUANTUM OF DAMAGES AWARDED AT ICSID

The present paper is part of a larger study that aims to identify some of the factors that have a great impact on the quantum of the damages awarded in ICSID cases. The driver of this study is the high level of the damages awarded in this sort of disputes between foreign investors and the host state. In 2012 the ICSID tribunal awarded more than 1.77 billion USD for a breach of Fair and Equitable Treatment standard and indirect expropriation by Ecuador. Another reason for choosing this subject is the increasing number of the cases judged at this Centre. The analytical method used for analysing the determination relation between the identified factors and the quantum of the damages is the linear regression analysis. For the data collection were used as many cases’ awards as could been found published on the official site, from which were selected the cases were damages were awarded, in number of 30. For all the analysis made the statistical signification was followed and additional statistics trimming methods used, were necessary. The first factor that had been chosen was the value of damages requested, the calculations showing the impact assumed for it. The reasons beside this selection are pretty obvious: it is the most obvious factor on which the arbitrator can rely, it has the same nature of value, and it’s based on an expert’s report of damages’ valuation. There is plenty room for further analysis, this only representing the starting point, but is very important step in configuring the data base on which the following analysis will be set. For each case studied there are other characteristics, beside the value of damages requested, that were extracted and presented in order to determinate there impact or the lack of impact. For these factors is needed a preparation operation of pondering because of their nature, non-numerical, so that these will be the subject of a further analysis. The importance of this paper is also given by the definitions of the elements used in the factors’ impact analysis.