Investment Treaty Arbitration Damages Expert Witness

Investment treaty arbitration under ICSID, UNCITRAL, and institutional rules requires damages experts familiar with international law standards and tribunal practice. The full reparation principle from Chorzów Factory (PCIJ 1928) requires restoration of the investor to the position it would have been in absent the treaty breach - measured through fair market value for expropriation, discounted cash flow for going concerns, or lost profits where appropriate to the facts.

Expropriation and indirect expropriation claims typically rely on FMV at the date of taking or date of award, with DCF supporting valuations where the investment had an established operating history. Fair and equitable treatment and umbrella clause breaches may give rise to lost profits damages quantified through but-for financial models and sensitivity analysis on growth, WACC, and terminal value. Tribunals scrutinise assumptions heavily, and experts must comply with IBA Rules on Evidence and tribunal-specific procedural orders.

ICSID annulment, state counterclaims, and currency conversion add layers to quantum presentation. Experts prepare reports for hot-tubbing and witness conferencing, respond to tribunal-appointed expert directions, and address damages under English law, civil law, and international law sources as applicable to the substantive governing law of the dispute.

Frequently Asked Questions