Public Law Studies Quarterly

Confronting Corruption in International Arbitration

Document Type : Article

Authors

Ghasem Zamani 1
Iman Mirzazadeh 2
Erfan Mirzazadeh 3

1 Professor in (International Law), Allemeh Tabatabaie University, Tehran, Iran

2 Ph.D. in (International Law), University of Tehran, Tehran, Iran

3 Ph.D. student in) International Law), North Branch, Azad Islamic University, Tehran, Iran

https://doi.org/10.22059/jplsq.2021.303277.2445
Abstract
In international arbitration, arbitrators may encounter allegations of corruption from one of the parties or find evidence during document review that raises a strong suspicion of corrupt practices. Typically, arbitrators prefer to resolve disputes within the framework of the parties’ claims and pleadings, avoiding such issues. However, passivity in the face of corruption not only invites abuse of the arbitration process but can also turn it into a tool for legitimizing illegal contracts and agreements. This study examines whether arbitrators should adopt a proactive approach in confronting corruption or continue proceedings neutrally, in accordance with the parties’ agreements. Some arbitrators, while recognizing their jurisdiction, actively address corruption by applying established anti-corruption standards. By analyzing selected awards in international arbitration, this study demonstrates the value and desirability of a proactive approach in dealing with corruption.

Keywords

arbitration
burden of proof
corruption
pro-active role
public policy

  1. English

    1. A) Books
    2. Born, G. (2014). International Commercial Arbitration (Second Edition), Kluwer Law International.
    3. Kaj, H. (2011). International Commercial Arbitration in Sweden. Oxford University Press.
    4. Mujic, E. (2011). Master's Thesis in International Process Law, International Commercial Arbitration. Corruption in International Commercial Arbitration: The Right of the Arbitrator to Conduct Self-Initiated Investigation of Corruption’
    5. Persson, M. (2017). Master's Thesis in International Process Law, International Commercial Arbitration, ‘Enforcement of Annulled Arbitral Awards A Study on the Enforcement of Annulled Foreign Arbitral Awards under the 1958 New York Convention from a Swedish Perspective’, Uppsala University.

     

    1. B) Articles
    2. Baizeau. D & Hayes & Tessa Hayes, (2017). The Arbitral Tribunal’s Duty and Power to Address Corruption Sua Sponte. Kluwer Law International 225
    3. Bernard, H. (2014). The Law Applicable to Arbitrability. Singapore Academy of Law Journal, 26.
    4. Foustoucos, A. C. (1988). Conditions Required for the Validity of an Arbitration Agreement. J. Int'l Arb., 5, 113.
    5. Gillis Wetter, J (1994). Issues of Corruption before International Arbitral Tribunals: The Authentic Text and True Meaning of Judge Gunnar Lagergren's 1963 Award in ICC Case No. 1110. Arbitration International, 10.
    6. Hobér, K. (2009). In Memoriam, Gunnar Lagergren. Arbitration International, 25(4), 633-634.
    7. Lamm B Carolyn, Greenwald, and Young M. Kristen, (2014). Article from World Duty-Free to Metal-Tech: A Review of International Investment Treaty Arbitration Cases Involving Allegations of Corruption. ICSID Review.
    8. Lew JDM, Mistelis LA, & Kröll S. (2003). Comparative International Commercial Arbitration. Kluwer Law International
    9. Majeed, N. B. (2000). Commentary on the Hubco Judgment. Arbitration International, 16(4), 431-438.
    10. Raouf, M. A. (2009). How Should International Arbitrators Tackle Corruption Issues?. Foreign Investment Law Journal, 24.

     

     

    1. C) Cases & Documents
    2. ICC Award No. 1110 of 1963
    3. ICC Case No. 6401 (1991), Westinghouse International Projects Company et al. v. National Power Corporation
    4. ICC Case No 7047. (1994), Westacre (UK) v Jugoimport (Yugoslavia). .
    5. Nations U, ‘UNCITRAL Model Law on International Commercial Arbitration 1985, With Amendments as Adopted in 2006

     

    1. D) Websites
    2. <https://www.trans-lex.org/201110/_/icc-award-no-1110-of-1963-by-gunnar-lagergren-yca-1996-at-47-et-seq-/> accessed 19 October 2019.
    3. <https://academic.oup.com/arbitration/article-abstract/10/3/277/185386> accessed 31 March 2020.
    4. <https://law.justia.com/cases/federal/appellate-courts/F2/949/653/82446/> accessed 30 March 2020.
    5. <http://www.newyorkconvention.org/english> accessed 2 April 2020
    6. <https://academic.oup.com/icsidreview/article-abstract/29/2/493/681489? redirected From=fulltext> accessed 13 April 2020
    7. <https://www.iisd.org/itn/2010/02/10/icsid-finds-that-corruption-has-no-place-in-annulment-proceedings-2/> accessed 13 April 2020
    8. Wilmer hale Gary Born, ‘Bribery and an Arbitrator’s Task - Kluwer Arbitration Blog’ (Kluwer Arbitration Blog, 1 November 2011) <http://arbitrationblog. kluwerarbitration.com/2011/10/11/bribery-and-an-arbitrators-task/> accessed 3 May 2020.

     

     

    References In Persian:

    - Articles

    1. Ghasemi, G. A. (2016). Preventive Measures against Economic Corruption in the Light of the Anti-Corruption Convention and Regulations of Iran. Comparative Law, 106 (In Persian).
    2. Mirfakhraei, M. J. (1991). Arbitrators' Civil Liability, A Comparative Study with Correctional Suggestions. Legal Journal of the International Presidential Law Center, 10(14 & 15) (In Persian).
    3. Nouri Yoshanloui, J., & Shah Moradi, E. (2017). Legal Effects of Corruption on Oil and Gas Contracts. Energy Law Studies, 5 (In Persian).
    4. Taghipour, B., Abbasi, M., Mahdavipour, A., & Ebrahimi, M. T. (2019). Legal-Ethical Strategies to Combat Corruption in Concluding International Trade Agreements. Ethical Research, 10(1) (In Persian).
Public Law Studies Quarterly
Volume 55, Issue 4 - Serial Number 44
Winter 2026
Winter 2026
Pages 2277-2296

  • Receive Date 24 May 2020
  • Revise Date 15 October 2020
  • Accept Date 26 January 2021

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