AIAC arbitration

Overview Content for select subtopic is not present

Powered by Lexis+®
Latest Arbitration News

The Criminal Chamber of the Spanish Supreme Court confirms that the Sole Arbitrator in the Heirs of the Sultan of Sulu v Malaysia case acted in serious disobedience to the court

Arbitration analysis: The Supreme Court of Spain upheld the criminal conviction of a Sole Arbitrator who continued arbitral proceedings after his judicial appointment had been nullified due to defective service on a foreign sovereign. Despite being expressly required by the court clerk to cease acting, the Sole Arbitrator persisted, issued a preliminary award confirming jurisdiction, moved the arbitral seat from Madrid to Paris, and ultimately rendered the final award ordering the respondent State of Malaysia to pay approx. US$ 15bn. The Supreme Court held that the arbitral autonomy cannot justify disregarding a binding judicial decision declaring nullity of the arbitrator’s appointment. Once the appointment proceedings were nullified, the appointment decision was removed from ‘the legal world’ and, thus, the Sole Arbitrator lacked any valid mandate to continue arbitration. This judgment is significant for arbitration practitioners as it draws a line between legitimate resistance to judicial interference and defiance of court authority, which is not permissible. It may also imply potential criminal exposure for arbitrators in similar circumstances. Some observers may view the case as an intrusion into arbitral independence. However, the Supreme Court framed the issue not as judicial control over arbitration itself, but as enforcement of a binding judicial decision concerning the very existence of the arbitrator’s mandate. Written by Malgorzata Judkiewicz-Garvan, independent arbitrator & lecturer in Arbitration.

View Arbitration by content type :

Popular documents