Cross-country insights: Addressing Corruption Allegations in Arbitration Disputes

Because the fight against corruption now takes place at all stages of business, claims related to allegations of corruption are increasingly raised in commercial disputes and, naturally, in arbitration proceedings, whether they are raised as a strategic maneuver, as an excuse for not fulfilling contractual obligations or complying with awards, or genuinely, to avoid irregularities and misconduct. Corruption allegations can notably taint the credibility of arbitral awards, potentially rendering them unenforceable in domestic or international courts. Courts may refuse to enforce awards that are perceived to have been influenced by corrupt practices, thereby nullifying the parties’ efforts to resolve their dispute through arbitration. As such, handling such allegations is key in ensuring the integrity of the arbitration process. Through a series of interviews and comparative analysis, this project seeks to shed light on the diverse approaches taken by arbitrators and state courts in addressing corruption allegations.

By exploring different legal frameworks and practices across various jurisdictions, we hope to offer valuable insights into best practices for maintaining integrity and accountability in arbitration proceedings worldwide.

Pamela Alarcón, Partner PPU Legal

Stéphane de Navacelle, Managing Partner Navacelle