Abusive Initiation of Investment Arbitration: Lessons for Ukrainian Investors

Iniţierea abuzivă a arbitrajelor de investiţii: lecţii pentru investitorii ucrainieni

Pavlo LEBEDIEV, LL.M., PhD candidate

ABSTRACT

The finding of abuse in commencement of arbitral proceedings may lead to dismissal of submitted claims even without hearing the merits of the case. Although application of the abuse of process concept has such far-reaching consequences, jurisprudence on this matter remains inconsistent and contains ample grey areas. This opens the door for unpredictability in its application and creates a favourable environment for misuses of the right to initiate arbitration.

This article seeks to find a common denominator for the conflicting approaches to the issue of abuse of process. To meet this objective, the article analyses the theoretical underpinnings of the abuse of process concept and identifies the main practical challenges in applying it. As a result, the author has elaborated a test...