ICSID arbitration is the primary forum for investor-state disputes under the ICSID Convention and bilateral investment treaties. Political risk experts address the merits of claims by explaining the political and regulatory context of host state conduct.
Expert evidence under ICSID Arbitration Rules and IBA Rules on Evidence (where adopted) governs the preparation, submission, and examination of expert reports. Political risk experts address liability; forensic accountants and economists typically address quantum.
The Chorzow Factory principle requires full reparation, restoring the investor to the position they would have been in absent the breach. For expropriation, this means fair market value of the investment.
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Frequently Asked Questions
How is expert evidence used in ICSID proceedings?
ICSID arbitration typically involves extensive expert evidence on both the merits (political and legal context of the host state's conduct) and on quantum (valuation of the expropriated investment). Political risk experts address the former; forensic accountants and economists address the latter. The IBA Rules on Evidence (where adopted) govern the expert evidence procedure.
What is the significance of the Chorzow Factory standard in ICSID claims?
The Chorzow Factory principle requires full reparation, restoring the investor to the position they would have been in absent the breach. For expropriation, this means fair market value of the investment. Political risk experts establish the political context of the expropriation; forensic accountants or economists calculate the fair market value.