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Practising VirtueInside International Arbitration$
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David D. Caron, Stephan W. Schill, Abby Cohen Smutny, and Epaminontas E. Triantafilou

Print publication date: 2015

Print ISBN-13: 9780198739807

Published to Oxford Scholarship Online: January 2016

DOI: 10.1093/acprof:oso/9780198739807.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 23 September 2020

Compensation Due in the Event of an Unlawful Expropriation

Compensation Due in the Event of an Unlawful Expropriation

The ‘Simple Scheme’ Presented by Chorzów Factory and Its Relevance to Investment Treaty Disputes

(p.626) 38 Compensation Due in the Event of an Unlawful Expropriation
Practising Virtue

Abby Cohen Smutny

Oxford University Press

This chapter tackles the complex subject of compensation for unlawful takings under customary international law and international investment treaties. It presents a close examination of the famous Chorzów Factory case and concludes that the methodology of determining the compensation due, including the date at which the taken property must be valued, depends on the specific undertakings of the expropriating state, the nature of the state’s wrongful behaviour, and the available evidence of loss suffered. The analysis serves to dispel any lingering confusion over lawful versus unlawful expropriations and the remedies associated therewith.

Keywords:   compensation, international investment treaties, international law, unlawful takings

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