Demystifying The Concept Of Moral Damages In International Law

Shlok Mhatre, Maharashtra National Law University Mumbai

Vedanti Shete, Maharashtra National Law University Mumbai

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ABSTRACT

This research project explores the concept of moral damages within the framework of international law, particularly focusing on their application in investment arbitration. As globalization advances, the protection of individual rights against state misconduct has become increasingly critical. This study traces the historical evolution of moral damages, highlighting key cases such as Lusitania, Chorzów Factory, and Lemire, which have established foundational principles governing the award of moral damages. The project examines the legal instruments that underpin these principles, including bilateral investment treaties and the International Law Commission's Articles on State Responsibility. A significant focus is placed on the three-tier test from the Lemire case, which sets a high threshold for awarding moral damages by requiring evidence of ill-treatment, significant mental suffering, and a grave causal link. The research also addresses challenges and criticisms associated with these criteria, including their potential conflation with punitive damages and inconsistencies in application across different cases. Ultimately, this study aims to provide a comprehensive understanding of moral damages in international law while offering recommendations for refining the legal framework to ensure justice for victims of state misconduct.

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