Baker McKenzie examine the topical issue of the impact of corruption in disputes resolved by arbitration. Two cases are examined – World Duty Free (Claimant) v The Republic of Kenya (Respondent) (ICSID Case No. ARB/00/7), and Metal-Tech Ltd (Claimant) v Republic of Uzbekistan (Respondent) (ICSID Case No. ARB/10/3); in both cases, the investor had significant claims against the respondent Government, including claims of expropriation by the respective Governments and in both cases, corrupt conduct barred the investors’ rights to a legal remedy. The authors observe that these decisions demonstrate that where bribery and corruption are used to facilitate an international business transaction, it may not only expose the company to prosecution, but it can also impact on the company’s ability to pursue legal remedies in relation to the transaction.
About Phillip Rompotis
Phillip practices as a barrister and arbitrator in Hong Kong. He has over 25 years’ litigation and arbitration experience in commercial disputes relating to construction & engineering, financial services, joint venture & shareholders agreements, technology, trusts, property and landlord & tenant. He is a Fellow of the Chartered Institute of Arbitrators, the Singapore Institute of Arbitrators, the Malaysian Institute of Arbitrators, and a member of various lists/panels of arbitrators.View