Unpaid Invoices And International Arbitration: Is It Worth It?

• Published date: 14 October 2025
• Law Firm: Aceris Law
• Author: Aceris Law

In today's global marketplace, unpaid invoices are a persistent headache for businesses trading across borders. When a foreign customer fails to pay, as often occurs in practice, the risks multiply: unfamiliar legal systems, language barriers, and the challenge of enforcing judgments abroad. International arbitration has emerged as a preferred solution for resolving these disputes, offering neutrality, enforceability, and procedural flexibility. But is arbitration really worth the time and cost for recovering unpaid invoices? We will explore real-world cases, common legal hurdles, and practical strategies to help businesses make the right decision.

Unpaid invoice disputes arise in every sector, from commodities and manufacturing to services and technology. Not all cases involve small amounts.

For instance, SGS Société Générale de Surveillance S.A. v. The Republic of Paraguay, ICSID Case No. ARB/07/29 was an investment arbitration where SGS, a Swiss inspection company, provided services to Paraguay and issued invoices, some of which went unpaid, totalling over USD 39 million. The tribunal found Paraguay in breach of contract and the relevant investment treaty, awarding SGS the unpaid sums plus interest. The tribunal emphasised the importance of clear evidence of services rendered and invoices issued, and rejected defences based on delay or lack of prejudice.

In Gate Gourmet Korea v. Asiana Airlines, an ICC arbitration, Gate Gourmet Korea supplied catering services to Asiana Airlines, which failed to pay multiple invoices. The tribunal found Asiana liable for the full amount, awarding approximately KRW 35.8 billion plus contractual interest.

Elements of a Successful Claim for Unpaid Invoices

To succeed in a claim for unpaid invoices, a claimant must...