175See Lowenfeld, supra note 149, at 182.
176See generally BIN CHENG, GENERAL PRINCIPLES OF LAW AS APPLIED BY INTERNATIONAL COURTS AND TRIBUNALS (1953). Encompassed within this body of law is the concept of lex mercatoria or merchants' law. For discussion of lex mercatoria, see Lord Justice Mustill, The New Lex Mercatoria: The First Twentyfive Years, 4 ARB. INT'L 86, 88 (1988); Berthold Goldman, The Applicable Law: The General Principles ofLaw--the Lex Mercatoria, in CONTEMPORARY PROBLEMS, supra note 113, at 113.
177See Sapphire Int'l Petroleum Ltd. v. National Iranian Oil Co. 35 I.L.R. 136 (1963).
178Id. at 191.
179See Final Award No. 3572 (ICC 1982), reprinted in 14 Y.B. COM. ARB. 111 (1989).
181Id. at 121.
182See, e.g., Final Award No. ARB/87/3 (International Centre for Settlement of lnvestment Disputes [ICSID], June 27, 1990), reprinted in 17 Y.B. COM. ARB. 106, 141 (1992); Sedco, Inc. v. National Iranian Oil Co., 15 Iran-U.S. Cl. Trib. Rep. 23, 184 (1987). Related to this approach is the concept of amiable compositeur, which allows the tribunal to decide the dispute based on principles of equity and fairness, rather than the strict application of a given law. Use of this option is not permitted by most institutional rules unless specifically so agreed to by the parties. BORN, supra note 148, at 135. See CRAIG ET AL., supra note 161, at 310-12; see also REDFERN & HUNTER, supra note 151, at 36-38, 121-22.
183See McCollough & Co., 11 Iran-U.S. Cl. Trib. Rep. at 26-31.
184Id. at 29.
185Id. at 29-30.
186See id. at 31. Applying this approach, the tribunal awarded the claimant interest at a rate of 11%. See id. Judge Brower expressed disappointment in the majority's decision, arguing that the award was not consistent with the commercial approach used by other Chambers and suggesting that a better approach would be to award the actual borrowing interest rate on substitute funds, or the earnings lost due to the unavailability of funds. See McCollough & Co., 11 Iran-U.S. Cl. Trib. Rep. at 42-43 (Brower, dissenting).
187Compare Grove-Skanska, supra note 6, at 933 (refusing to apply New York statutes regarding interest even though the parties explicitly stated that New York law would govern all contract disputes) with Final Award No. 5946 (ICC 1991), reprinted in 16 Y.B. COM. ARB. 97 (1991) (holding that the parties' disputes concerning interest would be resolved under the New York statutes as provided in the agreement).
188See, e.g., Final Award (ICSID Jan. 6, 1988), reprinted in 14 Y.B. COM. ARB. 82, 90 (1989); Benvenuti, 21 I.L.M. at 762; Agip Co. v. Government of the People's Republic of the Congo, 21 I.L.M. 738, 739 (1982); Final Award No. 6527, 18 Y.B. COM. ARB. at 53; Final Award No. 5946, 16 Y.B. COM. ARB. at 118; Final Award No. 3572, 14 Y.B. COM. ARB. at 121; Arbitral Award of July 23, 1981, reprinted in 8 Y.B. COM. ARB. 89,94 (1983); Phillips Petroleum, 21 Iran-U.S. CL Trib. Rep. at 161; Sedco 21 Iran-U.S. CL Trib. Rep. at 184; Exxon Corp. v. National Iranian Oil Co., reprinted in 13 Y .B. CoM. ARB. 311, 314 (1988); American Bell, 12 Iran-U.S. Cl. Trib. Rep. at 230; Computer Sciences Corp. v. Iran, 10 Iran-U.S. Cl. Trib. Rep. 269,304 (1986); McCollough & Co., 11 Iran-U.S. Cl. Trib. Rep. at 31; Sylvania Technical Sys., Inc. v. Iran, 8 lran-U.S. Cl. Trib. Rep. 298, 322 (1985); Award No. 1503 (SMA Dec. I, 1980), reprinted in 7 Y.B. COM. ARB. 147, 148 (1982); Award of Oct. 30, 1980 (SMA), reprinted in 7 Y.B. COM. ARB. 150, 151 (1982).
189See, e.g., Final Award No. 7006, 18Y.B. COM. ARB. at 66; Award No. 12783, 13 Y.B. COM. ARB. at 377; Award Nos. 2977, 2978 and 3033, 6 Y.B. COM. ARB. at 139; LIAMCO v. Libya, 20 I.L.M. 1, 116 (1981).
190See, e.g., Final Award No. 6283, 13 Y.B. COM. ARB. at 185; Asian Agricultural Products, 17 Y .B. COM. ARB. at 141.
191See McCollough & Co., 11 Iran-U.S. Cl. Trib. Rep. 3, 28 n.21 (1986) (citing cases); 3 WHITEMAN, supra note 7, at 1975-86 (discussing cases); RALSTON, supra note 7, at 130 (discussing cases).
192McCollough & Co., 11 Iran-U.S. Cl. Trib. Rep. at 28.
193See, e.g., Renusagar Power Co. v. General Elec. Co., Award No. 19 (High Court Bombay, Oct. 12, 1989), reprinted in 16 Y.B. COM. ARB. 553, 561-66 (1991); Aminoil, 21 I.L.M. at 1042.
145See, e.g., McCollough & Co., Inc. v. Ministry of Post, Tel. & Tel., 11 Iran-U.S. Cl. Trib. Rep. 3, 29 (1986) (stating that "the rate of interest must be reasonable, taking due account of all pertinent circumstances"); American Bell Int'l Inc. v. Islamic Republic of lran, 12 Iran-U.S. Cl. Trib. Rep. 170, 229 (1986) (stating that the claimant "is clearly entitled to interest at a 'reasonable' or 'fair' rate"). For cases discussing the Iran-U.S. Claims Tribunal practice of not distinguishing between moratory and compensatory interest, see supra note 128.
146See McCollough & Co., Inc., 11 Iran-U.S. Cl. Trib. Rep. at 26-31.
147Id. at 29-30. For a discussion of McCollough & Co., Inc., see supra § 2.5(1)(d).
148See, e.g., Final Award No. 6998 (ICC 1994), reprinted in 21 Y.B. COM. ARB. 54, 78 (1996) (awarding interest on fees and costs from the date of the award until payment at "one point above the LIBOR Rate"); Liberian Eastern Timber Corporation (LETCO) v. Government of the Republic of Liberia (ICSID), reprinted in 26 I.L.M. 647, 676 (1987) (awarding moratory interest on the award until payment "at the annual rate of LIBOR at three months"); Wintershall A.G., 28 I.L.M. at 809 (awarding moratory interest at "the generally prevailing LIBOR rate on the date of the award" until payment).
149Final Award No. 6281 (ICC 1981), reprinted in COLLECTION OF ICC ARBITRAL AWARDS 1986-1990 249, 254 (1994).
152See Award of July 23, 1981 (Ad Hoc), reprinted in 8 Y.B. COM. ARB. 89, 94 (1983); see also Klaus Petere Berger, International Arbitral Practice and the UNIDROIT Principles of International Commercial Contracts, 46 AM. J. COMP. L. 129, 138 (1998).