Moral Damages in Investment Arbitration: Shifting Lines in the Sand

Abstract

The scope of moral damages within an investment arbitration context can best be described as shifting lines in the sand that change with the wind of every new decision. This research paper will focus on the purpose and function of moral damages within the context of investment arbitration. The recent arbitral award in Desert Line v Yemen will be the central focus of this paper, and the issues raised as a result of this award will be discussed. This paper will also consider the relationship between moral damages and investment arbitration, and assess the cohesiveness thereof. General concerns as to the suitability of moral damages within the context of investment arbitration shall be addressed in order to determine whether or not moral damages have a place within the investment arbitration arena.