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Report No. 260

J. Article 14.10. Award.

(i) Analysis and comment:

5.10.1 There is a contradiction between Articles 14.10 and 14.11. Article 14.10 suggests that an award for compensation can be passed only upon a breach of Chapter II, while Article 14.11 provides that compensation can be awarded even when there is a breach of Chapter III obligations by the investor. Article 14.11 is relatively clear, but it is suggested that a reference may be made in Article 14.10 itself to the compensation awarded under Article 14.11.

5.10.2 Article 14.10 is also unclear as to when breaches of obligations become relevant. It is suggested that the discretion of tribunals while calculating compensation should be limited and as clarification, therefore, breaches of Chapter III should only become relevant in calculating compensation in instances where counterclaims have been made.



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