International Legal Framework Governing Assessment of Damages Caused to Foreign Investors in Armed Conflict

Abstract

Abstract Disputes arising from armed conflicts are on the rise, raising various complex legal issues. This article examines standards applicable to assessing damages arising from armed conflicts. The existing treaties, cases and commentaries show a complex and tangled landscape of rules and principles governing damages in the context of armed conflicts. While the vast majority of investment treaties contain war clauses that appear to prescribe special rules for the assessment of damages, most tribunals have refused to apply the lex specialis principle and have instead used the Chorzow Factory principle. Hence, more consistency and predictability would be needed in this connection which can be achieved in the form a dedicated working group.