World Duty Free brought a $500 million claim against the Republic of Kenya for an alleged expropriation of a contract to operate duty free concessions at Kenya’s two international airports. Following the emergence of evidence that the contract had been procured through the payment of a cash bribe to former President of Kenya, Daniel Arap Moi, Kenya filed an application unprecedented in ICSID arbitration to have the claim dismissed in limine litis because it arose under a contract that was illegal and unenforceable as a matter of law and public policy. The tribunal agreed to hear ground-breaking legal argument on the effect of a cash bribe to a then-sitting Head of State and, in an award that stands as a landmark judgment on the effects of corruption on international claims, dismissed all claims against our client.
16 December 2015