2010 Herbert Smith Freehills-SMU Arbitration Lecture Series


Corruption in Arbitration -- Law and Reality

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Corruption is internationally abhorred and denounced. For this reason, it appears to be a deceptively simple matter to dispose of. The truth of the matter is quite the opposite. Arbitrations involving corruption throw up difficult legal issues at practically every stage of the arbitral process. Should the tribunal conduct its own investigations if neither party alleges any wrongdoing, but prima facie evidence of corruption exists? What is the evidentiary threshold to be discharged in order to prove corruption? Is a host state precluded from raising defences related to the investor’s corruption, if the state participated in such corruption by soliciting bribes from the investor, or refuses to prosecute complicit officials? How should reviewing courts address claims that awards should be set aside or refused enforcement because they uphold contracts tainted by corruption? This lecture seeks to address these controversial questions amongst others, and discusses the possible theoretical and practical solutions.


Dispute Resolution and Arbitration | Law

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