Legal Implications of Corruption Crime Legal Process on the Arbitration Dispute Resolution Proceedings
Abstract
The research aims to analyze allegations of criminal acts of corruption that may affect the validity of arbitration agreements, as well as the implications of investigating or prosecuting these criminal acts simultaneously with arbitration proceedings. The research method relies on arbitration legal instruments and relevant literature, including the New York Convention 1958, the UNCITRAL Model Law, and Law No. 30 of 1999. The research identifies differences in regulations concerning the conduct that arbitrators or arbitral tribunals may adopt when examining arbitration disputes where the subject matter is also under investigation for criminal acts of corruption. The uniqueness or novelty of the research lies in its comprehensive analysis of the legal gaps and uncertainties that arise when these two legal processes run in parallel. The findings show that in some jurisdictions, arbitration disputes related to criminal acts of corruption are refused or rejected, while others continue the arbitration process by considering the principles of party autonomy and separateness in arbitration law. The research recommends several approaches that arbitrators or arbitral tribunals may take and emphasizes the need for regulations from relevant authorities to ensure legal certainty in the parallel examination of arbitration disputes and criminal acts of corruption involving the same subject matter.
References
Briscoe, Adam, and Björn Arp. "Conference Report: Handling Allegations of Corruption in Arbitration and Judicial Dispute Settlement." Arbitration Brief 6.1 (2019)
Burnett, Henry G. and Jessica Beess und Chrostin, Interim Measures in Response to the Criminal Prosecution of Corporations and Their Employees by Host State in Parallel with Investment Arbitration Proceedings, 30 Md. J. Int'l L. 31 (2015). http://digitalcommons.law.umaryland.edu/mjil/vol30/iss1/5,
Draye, Maarten. “Commentary on Part VI of the Belgian Judicial Code, Chapter V: Article 1700” in Niuscha Bassiri & Maarten Draye, eds, Arbitration in Belgium (Alphen aan den Rijn: Kluwer Law International. (2016)
Galagan, Dmytro. Provisional measures in international arbitration as a response to parallel criminal proceedings. Diss. (2019). https://dspace.library.uvic.ca/server/api/core/bitstreams/8869790f-de17-4931-b5a9-5df6e90ed77e/content
Garajová, M. "The Issue of Corruption in The International Trade-Questioning The Arbitrators’ Jurisdiction." PEOPLE: International Journal of Social Sciences 4.2 (2018): 1-6.
Happold, Matthew. "International Arbitration and National Criminal Proceedings: Presentation Given to the Luxembourg Arbitration Association, 30 June 2020." University of Luxembourg Law Working Paper 2020-020 (2020).
Hiber, Dragor, and Vladimir Pavic. "Arbitration and crime." Journal of International Arbitration 25.4 (2008).
Llamzon, Aloysius. “Yukos Universal Limited (Isle of Man) v The Russian Federation: The State of the ‘Unclean Hands’ Doctrine in International Investment Law: Yukos as both Omega and Alpha” 30:2 ICSID Rev 315. (2015)
Martin, A. Timothy. "International arbitration and corruption: an evolving standard." Transnational Dispute Management 1.2 (2004)
Mirzazadeh, Iman. "Addressing Corruption in International Arbitration: The approach of Arbitrators When They Confronted with Cases Involving Allegation or Suspicion of Corruption: Eyes shut or Pro-Active." (2020).
Novian, Desri. Hukum Acara Arbitrase di Indonesia. Yogyakarta : CV. Arti Bumi Intaran. (2023).
Novian, Desri. The Application of Party Autonomy Principle in Arbitration. Jurisprudentie : Jurusan Ilmu Hukum Fakultas Syariah Dan Hukum, 11(1), (2024). hlm. 26-36 https://doi.org/10.24252/jurisprudentie.v11i1.48364
Novian, Desri. “Problematika Hukum Masuknya Pihak Ketiga Dalam Proses Pemeriksaan Sengketa Arbitrase Di Indonesia”. UNES Law Review 6, no. 1 (September 13, 2023): 1261-1271. Accessed August 28, 2024. https://review-unes.com/index.php/law/article/view/868.
Reksodiputro, Mardjono. “Sistem Peradilan Pidana Indonesia (Melihat kepada Kejahatan dan Penegakan Hukum dalam Batas-batas Toleransi)”. Pidato Pengukuhan Penerimaan Jabatan Guru Besar Tetap dalam Ilmu Hukum pada Fakultas Hukum Universitas Indonesia. (1993).
Savage, John, dan Emmanuel Gaillard. "Fouchard, gaillard, goldman on international commercial arbitration." (1999). 1-1320.
Uluc, Inan. "Corruption in International Arbitration" (2016). SJD Dissertations. Paper 1. https://icsid.worldbank.org/sites/default/files/parties_publications/C3765/Claimants%27%20Reply%20%28Redacted%20per%20PO8%29/Legal%20Authorities/CL-0052.PDF
Zulfa, Eva Achjani dan Indriyanto Seno Adji. Pergeseran Paradigma Pemidanaan. Cet.2 Bandung: Lubuk Agung. (2011)
Zulfa, Eva Achjani. Gugurnya Hak Menuntut, Dasar Penghapus, Peringan, dan Pemberat Pidana, Bogor: Ghalia Indonesia. (2010).
Copyright (c) 2024 Desri Novian, Kelly Manthovani
This work is licensed under a Creative Commons Attribution 4.0 International License.
Once an article was published in the journal, the author(s) are:
- to retain copyright and grant to the journal right licensed under Creative Commons License Attribution that allows others to share the work with an acknowledgement of the work's authorship.
- permitted to publish their work online in third parties as it can lead wider dissemination of the work, with an acknowledgement of its initial publication in this journal
- continue to be the copyright owner and allow the journal to publish the article with the CC BY-NC-SA license
- receiving a DOI (Digital Object Identifier) of the work.
