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In the English case Stockman Interhold S.A. -v- Arricano Real Estate PLC (2017) EWHC 2909, the Court summarized the applicable legal principles for setting aside an arbitral award for fraud, as follows:
- The complainant, who seeks to the set aside an arbitral award for fraud, must demonstrate its case to a high standard of proof (see Elektrim -v- Vivendi (2007) EWHC 11 at paragraph 11).
- There must be a sufficient causative link, between the fraud, and the obtaining of the relevant arbitral award, which can be demonstrated in the following ways:
- There must have been “reprehensible or unconscionable conduct” that contributed in a substantial way to the obtaining of the award (see Double K Oil & Products Ltd -v- Neste Oil OYJ (2010) EWHC 3380 at paragraph 33).
- The applicant must show that the evidence relied on to demonstrate the fraud, would have had an important influence on the result of the arbitration (see Thyssen Canada Ltd -v- Mariana Maritime SA (2005) EWHC 219 at paragraph 60).
- It must also be shown, that the fraudulent conduct has caused substantial injustice in the sense that the fraud had an important influence on the award, and/or the result of the award, might realistically have been, or might well have been different, if the true facts had been known (see Mass -v- Musion (2015) EWHC 1346).