This article discusses damages analysis for the interruption of the income stream in income generating assets or investments due to breach of contract or the violation of an international legal standard (international tort), in commercial and investment arbitration, as applicable. As will be shown in the following paragraphs, the methodology of damages analysis with respect to income generating assets in commercial and investment arbitration is similar. The difference lies in the so-called measure of damages.

 

For income generating assets, the income stream serves to recover the investment and to generate profits. Income generating assets may be electric power plants, hotel resorts, oil and gas exploration projects, toll highways, production plants and other investments. In these cases, damages claims may arise from the breach of contract or international tort, where the damages analysis is about the effect of the breach or the illegal State measure on the income stream.