Investor Presentaiton

145 "The judicial restitution required in this case would imply modification of the current legal situation by annulling or enacting legislative and administrative measures that make over the effect of the legislation in breach. The Tribunal cannot compel Argentina to do so without a sentiment of undue interference with its sovereignty." 170 Consequently, the tribunal concluded that it would award only monetary compensation. A number of IIAs, in particular those concluded by Canada and the United States (but by other countries as well), explicitly prohibit awards of "punitive damages". This is a precautionary measure. It is widely accepted that punitive damages are generally not available under international law, regardless of whether this is explicitly prohibited by the IIA. P. Costs of arbitration Investment arbitrations are expensive. In a case that goes through a jurisdictional, merits and damages phase, each of the disputing parties spends an amount equivalent to several million US dollars. Costs and expenses fall into one of the three categories: (i) arbitrators' fees and applicable secretariat expenses (often referred to as "arbitration costs"); (ii) attorneys', or legal fees (which typically account for the biggest share of the total costs of the case), and (iii) additional costs for the involvement of experts and witnesses, and hearing-related expenses for court reporters and interpreters, where necessary. The most common practice as an arbitration progresses is for the disputing parties to contribute equally to the costs of the proceedings. Typical initial advance payments in NAFTA Chapter 11 proceedings have been in the range of US$ 40,000 to US$ 75,000 170 LG&E v. Argentina, Award, 25 July 2007, para. 87. UNCTAD Series on International Investment Agreements II

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