Arnold & Porter Secures Dismissal of Six Dayyani Investors’ Treaty Claims Against Republic of Korea

Arnold & Porter and Peter & Kim represented the Republic of Korea in an investment treaty arbitration brought by six Iranian investors, members of the Dayyani family. The arbitration arose from the Claimants’ allegations that Korea had breached the bilateral investment treaty between Korea and Iran by delaying payment of, and failing to pay in full, an award rendered in an earlier arbitration under the same treaty. The Claimants alleged violations of the treaty’s fair and equitable treatment and free-transfer provisions, and disputed the final and binding status of the earlier award. The tribunal addressed Korea’s efforts to comply with the earlier award while navigating U.S. sanctions against Iran, Korea’s challenge to the earlier award before the English courts, and attachment and collection orders issued by Korean courts in proceedings brought by a third‑party creditor against one of the Claimants. The Claimants initially sought approximately US$1 billion in damages and later reduced their claim to roughly US$555 million. In an award dated September 28, 2026, the arbitral tribunal unanimously dismissed all of the Claimants’ claims on the merits, upheld Korea’s conduct as reasonable and not in breach of the treaty, and awarded Korea 75% of its legal and expert costs as well as its full share of the administrative costs of the arbitration. The case was conducted under the 1976 UNCITRAL Arbitration Rules and administered by the Permanent Court of Arbitration as PCA Case No. 2022-12 (Mohammad Reza Dayyani et al. v. Republic of Korea). The tribunal comprised Professor Albert Jan van den Berg (presiding arbitrator), Dr. Michael W. Bühler and Professor John R. Crook. Arnold & Porter represented the Republic of Korea with a team composed by: partners Jun Hee Kim and Anton A. Ware (lead counsel), senior counsel Paolo Di Rosa, senior associates Bart Wasiak and Tereza Gao, and associates Dianne Lake, Peter J.C. Saban, Grace Yang, and Lyuzhi Wang. Peter & Kim represented the Republic of Korea. Arnold & Porter partner Anton A. Ware, who acted as lead counsel for Korea, said that the tribunal’s award vindicates Korea’s good-faith compliance with its international obligations and clarifies issues concerning the interplay of investment treaty protections, award compliance and third‑country sanctions regimes.

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Arnold & Porter Secures Dismissal of Six Dayyani Investors’ Treaty Claims Against Republic of Korea

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Arnold & Porter Secures Dismissal of Six Dayyani Investors’ Treaty Claims Against Republic of Korea

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