| Abstract:
Quantum of damages is one of the most important aspects of proceedings in investment arbitration. Assessment of damages in investment treaty claims occasionally requires adjustment and reduction of damages under certain circumstances and situations. This could be explained by the impact of other rules of international law on the assessment of responsibility and damages in investment claims. The investment arbitration’ s jurisprudence indicates the relevance of investor's behaviorand practice after and before the breach of investment treaty standards by the host State to the determination of damages. Investment treaty obligations are, in principle, intended to exclusively protect qualified investors. However, conduct and practice of investor in the course of the investment activity in the host State has to be taken into account at the final stage of determination of compensation. In addition, contribution to the injury and non-compliance with the duty to mitigate the loss are the post-breach considerations potentially relevant to the reductionof damages arising out of investment treaty breaches. Taking into account damage-reducing factors is the potential source of development of the rules of remedies/compensationin investment treaty arbitration as well as the overall promotion of legitimacy of investment arbitration system.
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