Compensation in the jurisprudence of the International Court of Justice: towards an equitable approach

Abstract Article 36(2) of the International Law Commission’s Article on Responsibility of States for Internationally Wrongful Acts (ARSIWA) provides that the responsible state shall compensate for all financially assessable damage. However, ARSIWA provides no guidance as to how such a broad rule should be applied in practice, which creates significant ambiguities for adjudicators in charge of adjudicating compensation claims in international law. In the past decade, the International Court of Justice has adjudicated three important compensation cases wherein it has exhibited a visible turn to equitable considerations in compensation determination. This article conducts an analysis of such an emerging equitable approach to compensation and argues that it is a welcome development, given the flexibility it provides to the Court for balancing different factors, with the aim of achieving an equitable determination of compensation. This article also addresses the justifications and predictability concerns of this approach.