Equity, Compensation, and Costs

Abstract

Just as equitable considerations can inform a court or tribunal’s decision in the early phases of the adjudicatory process, so equity may have a role to play in fixing the amount of compensation, in allocating costs, and in deciding whether to grant security for costs. The chapter proceeds in two parts. First, it considers equity in the reasoning of international courts and tribunals leading to the award of compensation. Second, it studies the role of equity in decisions relating to costs in investment arbitration – notably in decisions on the apportionment of costs between the disputing parties and on security for costs, a provisional measure in whose application equitable considerations are noticeably prominent.