The Merits and Related Matters

This chapter examines the merits-related aspects of investment arbitration after jurisdictional requirements are satisfied, focusing on how tribunals determine treaty breaches and craft appropriate remedies. It analyses the range of available remedies – particularly compensation using contested valuation methodologies like discounted cash flow – and explores state defences including force majeure , contributory fault, and essential security exceptions that can excuse non-performance of treaty obligations. The chapter also addresses the growing tension between investment protection and public interest considerations such as human rights and environmental protection, demonstrating how tribunals balance investor rights against broader societal concerns in the evolving landscape of investor-state dispute settlement.