A Spanish arbitrator has been found guilty of contempt of court by a criminal court in Madrid, over his handling of an international contract dispute. The arbitrator, Gonzalo Stampa, had ruled that Malaysia was to pay $14.92 billion.
As a penalty for his contempt of court conviction, Stampa will be serving a six-month prison sentence. Additionally, the judgment disqualifies him from working as an arbitrator for a year.
The court found Stampa guilty based on his disobedience of court orders. He was told to end proceedings in the given case, yet he carried on and issued the final award in the dispute.
This lucrative arbitration dealt with what can arguably be considered Malaysia’s most historic discord – its longstanding contract dispute with the descendants of the last Sultan of Sulu.
This case brings forth issues related to ethical standards in arbitration and prompts a fresh look at preventive and corrective measures within the legal professional community.