KluwerArbitration ITA Arbitration Report, Volume No. XXIV, Issue No. 6 (June 2026)
July 5, 2026
The Institute of Transnational Arbitration (ITA), in collaboration with the ITA Board of Reporters, is happy to inform you that the latest ITA Arbitration Report was published: a free email subscription service available at KluwerArbitration.com delivering timely reports on awards, cases, legislation and current developments from over 60 countries and 12 institutions. To get your free subscription to the ITA Arbitration Report, click here.
The ITA Board of Reporters have reported on the following awards.
Gaurav Lavania, ITA Assistant Editor
The Arbitrator, sitting under the JAMS Comprehensive Arbitration Rules and Consumer Minimum Standards, held that TitleMax of Virginia, Inc., a Virginia-licensed lender not licensed in North Carolina, had unlawfully made high-interest title loans to a North Carolina resident, and that, notwithstanding the Virginia choice-of-law clause, North Carolina law governed the dispute. TitleMax’s conduct was found to violate the North Carolina Consumer Finance Act and to constitute unfair and deceptive trade practices under the UDTPA. Overriding the contractual choice of Virginia law on public-policy grounds, the Arbitrator awarded the Claimant USD 10,131.86 in compensatory damages (the value of the repossessed vehicle and payments made), USD 11,507.48 in attorney fees and costs, and USD 225,000.00 in punitive damages in lieu of treble damages, for a total award of USD 246,639.34, plus pre- and post-judgment interest.
Gaurav Lavania, ITA Assistant Editor
The sole Arbitrator, in an arbitration conducted under the AAA Commercial Arbitration Rules and governed by Texas law, upheld American Income Life Insurance Company’s (AIL) claims against its former independent insurance agent, Valentino Kalaj, for breach of contract and for misappropriation of trade secrets under the federal Defend Trade Secrets Act (DTSA) and the Texas Uniform Trade Secrets Act (TUTSA). Kalaj, having failed to participate in the proceedings despite ample notice, was found to have retained and used AIL’s confidential policyholder and lead information, distributing it to a network of agents (primarily from an agency called FFL Onyx) who induced AIL policyholders to cancel or replace their policies. The Arbitrator awarded AIL USD 8,598,186.92 in actual damages for the lost premiums attributable to Kalaj and his FFL Onyx network, exemplary damages equal to 25% of the actual damages (USD 2,149,546.73), USD 20,765.00 for unrepaid advance commissions, and attorney fees and costs, together with a permanent injunction.
Gaurav Lavania, ITA Assistant Editor
On cross dispositive motions (motion(s) to dismiss), the Arbitrator, sitting under the AAA Consumer Arbitration Rules, granted the Claimant’s motion and denied that of TitleMax of Virginia, Inc., holding that the Virginia choice-of-law clause in the loan agreement was void as contrary to the fundamental public policy of North Carolina and, in any event, inapplicable to the Claimant’s North Carolina statutory tort claims. North Carolina law therefore governed.
Hagar Radman, ITA Assistant Editor
The dispute arose out of a USD 5,000,000 loan made by a Seychelles-incorporated special purpose vehicle affiliated with Finstar Financial Group to a Spanish technology company holding the parent entity of an Irish fintech business specialising in payment solutions. The loan was guaranteed on a joint and several basis by the three individual shareholders of the borrower. Following the borrower's failure to repay the loan at maturity in August 2023, the Claimant commenced LCIA arbitration against the borrower and the guarantors.
Hagar Radman, ITA Assistant Editor
The dispute arose from an alleged breach of a dealer agreement and confidentiality agreement by a former independent dealer who, following the commencement of arbitration proceedings, threatened to disclose the Claimant's confidential pricing information and to solicit its dealer network for the benefit of a competing mattress business. The Emergency Arbitrator, appointed under AAA Commercial Arbitration Rules, Rule 39, found that the Claimant had satisfied all four elements required for preliminary injunctive relief under Florida law and granted the motion in full. Respondents were enjoined for two years from soliciting Claimant's dealers, disclosing confidential information, and interfering with Claimant's business relationships. Claimant was ordered to post a bond of USD 1,000.00.
Hagar Radman, ITA Assistant Editor
The dispute arose from the termination of a 31-year registered nurse at Fatima Hospital (OLF) following an incident in which she recorded a discharged patient as present during her safety check rounds. The Employer argued the conduct constituted willful falsification of patient records warranting immediate termination under its Corrective Action policy. The Union contended the conduct was an inadvertent error, that the safety check system was structurally flawed, and that the Employer had applied discipline inconsistently. The Arbitrator found that Grievant's false entries were not the result of an innocent mistake, but declined to uphold termination in light of her unblemished 31-year record and demonstrated remorse. The termination was converted to a long unpaid suspension, with reinstatement ordered effective January 1, 2026.
Mısra Yalçın, ITA Assistant Editor
Bristol Consulting Group, Inc., Claimant and owner of a commercial property on Verbena Street in Atlanta, Georgia, brought claims against Shotclock, LLC, a film production company that had obtained access to the property pursuant to a Location Contract for the purpose of filming a music video featuring the recording artist Lil Baby, during which unknown criminal assailants perpetrated a firearms assault on the property, causing personal injury to three individuals and damage to the property. Claimant brought claims in negligence, gross negligence, fraud, and negligent misrepresentation, as well as for punitive damages and attorney's fees for bad faith and stubborn litigiousness under O.C.G.A. Sec. 13-6-11, alleging that Respondent failed to exercise duty of care. The Arbitrator dismissed all of Claimant's claims, finding that the criminal assault was not foreseeable to Respondent and that, without foreseeability, no duty to guard against such third-party criminal conduct arose, and accordingly denied Claimant's negligence and gross negligence claims in their entirety. The Arbitrator further found that Claimant failed to present sufficient evidence to establish fraud or negligent misrepresentation, and denied those claims as well. Claimant's bad faith and punitive damages claims were also denied, and Respondent was found to be the prevailing party entitled to reasonable attorney's fees and costs under the terms of the Location Contract.
Enerfo Pte Ltd v. AA7 Foods and Beverages LLC (Final Award), RSA Arbitration 538, 30 October 2025
Mısra Yalçın, ITA Assistant Editor
Claimant agreed to sell and Respondent agreed to buy approximately 2,700 metric tonnes of 150 ICUMSA Brazilian white sugar of the 2024/25 crop on FOB Santos/Guaruja terms pursuant to a contract governed by English law and subject to the Rules of the Refined Sugar Association of London. Following shipment of the sugar in accordance with the contract, Respondent failed to pay the invoice and Claimant brought claims for payment of the unpaid invoice, loading port costs, and interest. The Tribunal upheld its jurisdiction and found in favour of Claimant in part, allowing the claims for the unpaid invoice and interest whilst dismissing the claim for loading port costs.
Mısra Yalçın, ITA Assistant Editor
Claimant brought claims before a sole arbitrator against franchisee JLKK, Inc. and its guarantor Jason Duane Powell arising from the termination of a motor vehicle service franchise agreement, alleging failure to pay past due amounts, breach of post-termination obligations, violation of a non-compete clause, and trademark infringement and unfair competition under the Lanham Act. The arbitrator found all claims established, awarded damages for unpaid royalties and marketing fund contributions, issued a permanent injunction prohibiting Respondents from operating a competing business within two miles of the former franchise premises for two years and from any further use of Claimant’s trademarks, with recovery to Claimant.
Mısra Yalçın, ITA Assistant Editor
The proceeding was administered by the American Arbitration Association, with Merlin Franchisor SPV LLC, as successor-in-interest to Merlin's Franchising, Inc. as Claimant, and P.J. Automotive, Inc., an Illinois corporation, and Jeffrey A. Strauss as Respondents.
Mısra Yalçın, ITA Assistant Editor
Unicon Ltd., Claimant, and the Ministry of Energy and Water of the Islamic Republic of Afghanistan, Respondent, subsequently succeeded by the Energy Supply Regulatory Authority (ESRA), were parties to a consultancy Contract dated 19 January 2019 for services relating to the construction of a gas pipeline from Sheberghan to Mazar-e-Sharif, governed by Afghan law and subject to ad hoc arbitration under the UNCITRAL Arbitration Rules with the seat in Dubai, UAE.
Diora Ziyaeva, Flavia Caron and Nina Leguizamon, Dentons, ITA Reporters for ICSID
In Webuild v. Argentine Republic, the ICSID Tribunal issued a quantum award following a prior determination that Argentina breached Article 2.2 of the Agreement between the Argentine Republic and the Republic of Italy on the Promotion and Protection of Investments. Among the key questions, the Tribunal had to determine the appropriate valuation date for the assessment of damages and whether the safeguards in place were sufficient to prevent double recovery between the ICSID arbitration and the parallel domestic insolvency proceedings.
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