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Law

The Doctrine of Unclean Hands in International Investment Arbitration

Quick fact

In several investment arbitrations, tribunals have refused jurisdiction or dismissed claims on the basis of investor misconduct, even when the state's own actions were questionable. For instance, in World Duty Free v. Kenya, the tribunal found that a contract obtained through bribery could not be enforced, invoking the principle that 'ex turpi causa non oritur actio'—no action can arise from a base cause.

Why this is interesting

Can a corrupt investor demand protection from international tribunals? Surprisingly, some have tried—and the results reveal a powerful legal principle.