Arbitration Practice
Libya's "Red Flags" Raised
over the ICC Award
The Paris Court of Appeal set aside an ICC arbitral award in the
dispute between the French company Sorelec and Libya.
Libya managed to prove the existence of "serious, specific
and consistent" indications of corruption in the conduct of
the state's official in March 2013 in signing the settlement
agreement underlying the award. Based on the terms of the
settlement agreement, Libya was to pay Sorelec EUR 230 million over
45 days after the partial award, and, if it failed to do so within
that term, the tribunal was to render the final award, this time
ordering a payment of EUR 452 million.
Libya did not pay the amount ordered in the partial award within
the required time and instead applied to the Paris Court of Appeal.
The Paris Court of Appeal set the award aside, since the minister
who had signed the settlement agreement on Libya's behalf
fraudulently colluded with Sorelec, violating the
