Contributory Fault and Investor Misconduct in Investment Arbitration

By Martin Jarrett, published by Cambridge University Press, August 2019

Investors must be held to account for their flawed contributions or otherwise wrongful conduct, but opinions vary on whether such circumstances are relevant to admissibility, jurisdiction, liability or remedies. This book suggests that they are relevant only to liability, meaning that the legal concepts that they activate, contributory fault and illegality, are defences. It identifies three defences: mismanagement, investment reprisal and post-establishment illegality. In detailing their legal content, the author pays special attention to resolving the problems that they raise relating to causation, apportionment of liability, distinguishing these defences from their conceptual cousins and arbitral tribunals’ jurisdiction over pleas based on investor misconduct. The result is a restatement of the rules on contributory fault and investor misconduct applicable in investment arbitrations. Available at