7
22.
The Court observes that, subsequently, the parties tried to establish the court of
arbitration in accordance with the criteria established in paragraphs 232 and 233 of the
judgment, each one appointing an arbitrator to compose the panel. Since the parties were
unable to reach agreement on the third arbitrator and since, subsequently, the arbitrator
appointed by mutual agreement between the arbitrator designated by the State and the
arbitrator selected by Mr. Chaparro declined his appointment, in accordance with paragraph
233 of the judgment, the Court must select the third arbitrator from among the candidates
proposed by the parties. In this regard, having analyzed the curricula vitae of the four
arbitrators proposed (supra seventeenth and eighteenth considering paragraphs) and taking
into consideration that the court of arbitration will be established to make a technical
determination of the percentage of losses suffered by Mr. Chaparro as the result of the
seizure and embargo of the Plumavit factory by the State, it appoints Alicia Arias Salgado as
the third member of the court of arbitration in this case. Consequently, the court of
arbitration responsible for establishing the amounts corresponding to pecuniary damage in
the instant case is composed of Cesar Molina, Ricardo Vaca Andrade and Alicia Arias.
23.
In accordance with paragraph 233 of the judgment, the arbitration procedure must
be of an independent nature, carried out in the city in which Mr. Chaparro resides, and
respect the applicable domestic law on arbitration, provided that this does not contradict the
content of the judgment. Furthermore, the arbitration procedure must commence within the
time frame established in the second operative paragraph of this order. Lastly, the amount
decided by the court of arbitration must be delivered to Mr. Chaparro within one year, at the
latest, from notification of the decision of the court of arbitration.
24.
Regarding the payment of the expenses arising from the arbitration procedure, the
Court recalls that this measure responds to the reparation of pecuniary damage
corresponding to the loss of assets suffered by Mr. Chaparro as a result of the State’s
actions in the instant case, which were indicated in paragraph 228 of the judgment. The
Court recalls that, when an illegal act occurs that can be attributed to the State, the
international responsibility of the State arises immediately for the violation of an
international norm, with the consequent obligation to make reparation and to cause the
consequences of the violation to cease. Furthermore, reparations, as the word indicates,
consist in measures tending to eliminate the effects of the violations committed and cannot
make the victims either richer or poorer.5 Consequently, the victim cannot be held
responsible for paying the expenses arising from a procedure to determine the harm to his
patrimony, but rather this corresponds to the State as part of its obligation to comply with
the Court’s decisions in the judgment.
d) Regarding the State’s obligation to pay the victims compensation for pecuniary
and non-pecuniary damage and reimburse costs and expenses
25.
With regard to the payment to Mr. Chaparro of the interest on arrears corresponding
to pecuniary compensation for the administration expenses and fees of the National Council
for the Control of Psychotropic and Narcotic Substances (CONSEP) described in paragraph
245 of the judgment (fourteenth operative paragraph of the judgment), the State advised
that “the Ministry of Justice and Human Rights made the corresponding payment in
December 2009.”
5
Cf. Case of Garrido and Baigorria v. Argentina. Reparations and Costs. Judgment of August 27, 1998.
Series C No. 39, para. 43; Case of the Miguel Castro Castro Prison v. Peru. Merits, reparations and costs. Judgment
of November 25, 2006, para. 416, and Case of González et al. (“Campo Algodonero”) v. Mexico. Preliminary
Objection, merits, reparations and costs. Judgment of November 16, 2009, para. 450.