Criteria for Distinguishing Lawful from Unlawful Expropriation and the Legal Consequences of Each (With Emphasis on the Practice of ICSID Tribunals and the Iran–US Claims Tribunal

Document Type : Original Article

Author
Gholamreza Yazdani
Department of law
10.22047/hsd.2026.540399.1096
Abstract
This paper examines the criteria for distinguishing between lawful and unlawful expropriation in international law, with a particular focus on the practices of ICSID arbitration tribunals and the Iran–US Claims Tribunal. The aim of this research is to propose a clear framework for identifying lawful versus unlawful expropriation and to determine the legal consequences attached to each. The study employs a methodology based on the analysis of international arbitration case law and a comparative review of relevant decisions and awards. The findings reveal that expropriation is considered lawful only if four essential criteria are met: 1) it serves a public purpose, 2) it is non-discriminatory, 3) it is carried out in accordance with due process of law, and 4) it is accompanied by full and effective compensation. The importance and innovation of this research lie in its precise clarification of these criteria and its comprehensive analysis of the legal effects resulting from the distinction between lawful and unlawful expropriation, particularly regarding the enforceability of lost profit claims and the amount of compensation payable.
Keywords
Expropriation
Legitimacy Criteria
Lawful Expropriation
Unlawful Expropriation
Title
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Development of humanities
Volume 7, Issue 13 - Serial Number 13
Humanities
Volume 7, Spring and Summer 2026, No. 13
October 2026
Pages 77-93

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