The relationship between arbitrators and parties under Spanish criminal law | Practical Law

The relationship between arbitrators and parties under Spanish criminal law | Practical Law

Alejandro López Ortiz (Senior Associate) and Silvia Martínez (Junior Associate), Hogan Lovells International LLP

The relationship between arbitrators and parties under Spanish criminal law

Practical Law Legal Update 4-502-6700 (Approx. 2 pages)

The relationship between arbitrators and parties under Spanish criminal law

Published on 30 Jun 2010International, Spain
Alejandro López Ortiz (Senior Associate) and Silvia Martínez (Junior Associate), Hogan Lovells International LLP
An amendment to the Spanish Criminal Code (Amendment), which has been published in the Spanish Official Gazette, will enter into force on 23 December 2010. The Amendment takes further steps to fight corruption and corporate crimes. Among other issues, it introduces several changes on the regulation of bribery to punish parties to arbitration proceedings who give or offer a bribe to an arbitrator.
The most important amendment to the Spanish Criminal Code from an arbitration perspective is that any party to arbitration proceedings who promises, gives or offers a bribe to an arbitrator can be punished. The current drafting of the Criminal Code, enacted in November 1995, already provided for criminal liability of arbitrators who requested or accepted bribes, putting them on a level with judges and other public servants. A later amendment, in November 2009, also punished individuals who promised, gave or offered a bribe, but only if the bribe was addressed to judges or other public servants. The Amendment now extends that provision to include situations where individuals promise, give or offer a bribe to any "person exercising a public function", a concept that, besides arbitrators, includes expert witnesses and, arguably, could include the staff of arbitral institutions. This expansion of criminal liability will surely have a dissuasive effect on any parties tempted to bribe and a reassuring effect on arbitrators facing reprehensible behaviour.
However, it is remarkable that while the legislator has fully regulated the crime of bribery in respect of arbitrators and parties to arbitration proceedings, it has not done the same for other crimes which could be committed in arbitration - such as trading influence or wilful misapplication of the law. The regulation of the crimes of undue influence or perverting the course of justice are still limited to public servants and authorities, without the possibility of including similar situations - such as persons exercising a public function, like arbitrators. Therefore crimes in which a party tries to influence an arbitrator or when an arbitrator willingly benefits or damages a party where no bribes are involved, will remain unpunished.
In conclusion, while bribery in arbitration is now fully regulated under the Spanish Criminal Code, there are other crimes which may arise in the arbitrator/party relationship which lack regulation.