Corruptıon In Internatıonal Arbıtratıon

Corruptıon In Internatıonal Arbıtratıon

Dr. İnan ULUÇ

INTRODUCTION 1

CHAPTER I Corruption and Arbitration 9

1. Corruption As An Increasing Concern in International Arbitration 10

(a) Corruption in Underlying Contract 12

i) Is the Main Contract Null and Void? 13

ii) Is the Arbitration Agreement Null and Void? 23

(b) Corruption in the Arbitral Process 25

i) Corrupt Arbitrators: 29

ii) Corrupt Witnesses 48

iii) Fraud in the Arbitration Process 53

(c) Challenges to Arbitral Awards On the Basis of Corruption 57

2. Conclusion 71

CHAPTER II Arbitrability, Separability and CompetenceCompetence Doctrines 74

1. The Doctrine of Arbitrability 76

a) The Doctrine of Arbitrability 77

b) Arbitrability of Corruption 79

2. The Doctrine of Separability 86

a) The Doctrine of Separability 87

b) The Doctrine of Separability in the Face of Corruption Allegations 91

i) Importance of the Challenged Contract 92

ii) Offensiveness of Corruption Allegations 99

3. The Principle of Competence - Competence 106

a) The Doctrine of Competence – Competence (Kompetenz -

Kompetenz) 106

b) The Competence – Competence Doctrine in the face of

Corruption Allegations 107

VII

4. Conclusion 112

CHAPTER III Evidence of Corruption in International Arbitration 114

1. Proving Corruption in International Arbitration 114

A. General Information about the Burden of Proof and Standard

of Proof 115

B. General Approach to the Burden of Proof and Standard of

Proof in International Arbitration 117

a) Laws and Rules Applicable to the Burden of Proof and

Standard of Proof 119

b) The Burden of Proof and Standard of Proof in International

Arbitration Practice 121

i) The Heightened Standard of Proof 122

ii) Lower Standard of Proof 135

iii) Conviction Intimate (Inner Conviction) 138

C. Causation 152

2. Evidence in International Arbitration in the Face of Corruption 154

a) Applicable Rules of Evidence in International Arbitration 155

b) Evidentiary Materials 156

i) Documentary Evidence 157

ii) Fact Witnesses 159

iii) Expert Witnesses 162

c) Arbitrators’ Discretionary Authority Regarding Admissibility 

and Assessment of Evidence 165

i) Admissibility and Assessment of Evidence Submitted by

the Parties 165

ii) Admissibility and Assessment of Evidence Obtained in

Parallel Proceedings 167

3. Conclusion 172

CHAPTER IV The Powers and Duties of Arbitrators 174

1. General Powers and Duties of Arbitrators 174

2. Arbitral Investigation of Corruption Allegations and Suspicions 177

VIII

a) Arbitrators: Servant of the Parties vs. Servant of the Truth 178

b) The Arbitrator’s Rights (Obligations) to Probe Into Corruption

Sua Sponte: Ultra Vires / Ultra Petita v. International Public

Policy 183

c) Reporting Corruption to the Arbitral Institution and Public

Authorities 192

3. Conclusion 200

CHAPTER V Corruption, Public Policy and the Standard of Judicial 

Review 202

1. The Competing Policies: Public Policy Exception vs. Pro-Enforcement Policy 203

2. The Standard of the Judicial Review 220

a) Minimum Judicial Review 220

i) Minimum Judicial Review in Switzerland and the United

States 221

(aa) Minimum Judicial Review in Switzerland 221

(bb) Minimum Judicial Review in the United States 228

ii) Exceptions to the Application of Minimum Judicial Review:

Examination of the Comprehensive Approach to Reviewing

Awards 233

b) Maximum Judicial (Non-Deferential) Review 240

c) Contextual Judicial Review 257

3. Conclusion 265

CONCLUSION 268

BIBLIOGRAPHY 274

I. Case Law 274

1. Arbitral Awards 274

2. National Case Law 277

2.1. American Case Law 277

2.2. English Case Law 278

2.3. French Case Law 279

IX

2.4. Swiss Case Law 280

2.5. Australian Case Law 281

2.6. Pakistani Case Law 281

2.7. Singapore Case Law 281

II. National Laws & Institutional Rules 281

1. National Laws 281

2. Institutional Rules 282

III. International Documents 283

1. Treaties & Legislation 283

2. United Nations 284

3. Transparency International 284

IV. Books & Collective Works 285

1. Books 285

2. Collective Works 286

V. Articles & Blogs 288

VI. News & Magazines 293