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Treaty and contract arbitrations proceed in parallel
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Background: partners in casino venture are unable to settle dispute
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Success fee arrangement does not warrant a set-aside
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Dismissal of claims based on collateral estoppel does not breach natural justice or public policy
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Case reveals details about Settlement Deed related to treaty arbitrations
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Claimants could not be surprised by Laos’s distinct “bad faith” defence
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Mistaken “recollection” of procedural record by arbitrators cannot lead to set-aside absent impact on the award
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Claimants could not have been surprised by tribunal’s reliance on report that was introduced by Laos in support of general illegality case
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Arbitrators have a “public duty” to consider corruption allegations
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New evidence did not change the outcome of the case
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Court split over existence of waiver given the claimants’ procedural conduct
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Parties’ agreement did not entirely bind the tribunal’s general procedural discretion
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Tribunal’s interpretation of parties’ procedural agreement is not open for review
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Tribunal could consider illegality allegations with respect to investments not at stake in ICSID arbitration
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Parties’ procedural agreement is not a limit to the tribunal’s jurisdiction; allegations are not “claims”
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Background: Decade-long dispute over casinos and slot machines results in adverse awards for the investors
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Costs of both cases shifted onto claimant, as well as Laos’ fees
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Applicable law and questions of corruption/bribery
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On facts, tribunal does not see clear and convincing evidence of bribes, but sees wrongdoing on balance of probabilities
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Interference with integrity of arbitration
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Purportedly legitimate offer from a third-party to purchase casino was a sham, but not proven to be a bribery scheme
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Other miscellaneous allegations lack evidence
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Standard of proof for corruption allegations
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Other claims for treaty breach are rejected, weight given to investor’s bad faith in dealing with government
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