ICSID Award, Southern Pacific Properties (Middle East) Ltd. v. Arab Republic of Egypt, YCA 1994, at 51 et seq. (also published in: ICSID Rev.-FILJ 1993, at 328 et seq.; ICSID Rep. 1995, at 189 et seq.; ILM 1993, at 933 et seq.; Clunet 1994, at 121 et seq.)
2 The Principle gives courts or arbitral tribunal a choice. They may award damages in the currency in which the monetary (payment) obligation was expressed for whose breach the damages are awarded. They may also decide to award damages in a currency other than the contract currency if the aggrieved party has incurred expenses or has suffered other harm in that other currency.
3 In either scenario, a court or tribunal may want to make a special upward adjustment of compensation in order to take account for a severe depreciation of the currency in which damages are awarded. A severe currency depreciation may also be a factor for the court's or tribunal's choice between the currencies mentioned in this Principle. In extreme cases of depreciation of both currencies, the court or tribunal may resort to other measures, such as awarding damages in a third currency or delaying the conversion date.
Please cite as: "Commentary to Trans-Lex Principle , https://www.trans-lex.org/948760"