Recognition and enforcement of foreign arbitral awards : a global commentary on the New York Convention / Herbert Kronke [and others].
2010
K2400.A41958 N49 2010 (Map It)
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Title
Recognition and enforcement of foreign arbitral awards : a global commentary on the New York Convention / Herbert Kronke [and others].
Published
Alphen aan den Rijn, The Netherlands : Kluwer Law International ; Austin : Wolters Kluwer Law & Business, 2010.
Distributed
Frederick, MD : Distributed in North, Central, and South America by Aspen Publishers
Call Number
K2400.A41958 N49 2010
ISBN
9789041123565
9041123563
9041123563
Description
xlvii, 617 pages ; 25 cm
System Control No.
(OCoLC)610076251
Bibliography, etc. Note
Includes bibliographical references (pages [577]-601) and index.
Record Appears in
Added Author
Table of Contents
About the Contributors
xxv
Foreword
xxix
Preface and Acknowledgments
xxxiii
A Note on Citations
xxxvii
List of Abbreviations
xxxix
Introduction The New York Convention Fifty Years on: Overview and Assessment / Herbert Kronke
1
I.
The New York Convention and Transnational Commercial Law in Perspective
1
II.
Reservations
6
III.
Recognition and Enforcement
7
IV.
Judicial Review of Arbitral Awards
8
V.
The Core Decision: Checks on Procedure
11
VI.
Relationship Between Different Regimes: The "More Favorable Rights" Principle
11
VII.
Asset Spotting and Forum Shopping
13
VIII.
Formalities and Refusal of Recognition and Enforcement: The State of Things and a Look toward the Future
17
Article I / Hans Bagner
19
I.
Introduction to Article I of the New York Convention
20
A.
Overview
20
II.
Article I(1): Scope of Application
21
A.
The Territorial Criterion: "Awards Made in the Territory of [Another] State"
21
1.
Hiscox v. Outhwaite (England, 1991)
22
2.
The Titan Case (Sweden, 2005)
23
B.
Non-domestic Awards
24
C.
"Arising Out of Differences between Persons, Whether Physical or Legal"
26
1.
Public Entities as Legal "Persons"
26
2.
State Immunity
27
a.
Societe Europeenne d'Etudes et d'Entreprises (S.E.E.E.) v. Socialist Federal Republic of Yugoslavia
27
b.
Union of India v. Lief Hoegh & Co.
28
c.
Immunity Defense Addressed by the Greek Courts
29
D.
Permanent Arbitral Tribunal: Article I(2)
29
III.
Reservations under Article I(3)
32
A.
The First Reservation: Reciprocity
32
B.
The Second Reservation: Commercial Reservation
32
1.
Courts' Interpretation of the Term "Commercial"
33
IV.
"One Country, Two Legal Systems": Enforcement of Foreign Awards in Mainland China and Hong Kong
36
V.
Conclusion
36
Article II / Philippe Pinsolle
37
I.
Introduction to Article II
38
A.
Overview of Article II
38
B.
Legislative History and Recent Developments
39
C.
Scope of Application of Article II
41
1.
As Regards the Seat of the Arbitration
41
2.
Potentially Relevant Fact Situations
43
D.
Does the New York Convention Leave any Room at all for National Legislation?
44
E.
Relationship between Article II and National Law
46
II.
Article II(1)
49
A.
General
49
B.
Requirements of a Valid Arbitration Agreement
49
C.
Necessary Content of the Arbitration Agreement
50
D.
Substance of the Arbitration Agreement
51
1.
Law Applicable to the Substance of the Arbitration Agreement
54
2.
Interpretation and Validity of Pathological Arbitration Clauses
57
3.
Substantive Validity of Arbitration Agreements by Reference
62
4.
Extension of the Arbitration Agreement to Non-signatories
62
E.
Arbitrability of the Subject-Matter
69
III.
Article II(2)
73
A.
General
73
B.
Interpretation of Article II(2) Under UNCITRAL's Recommendation and Article 7 of the UNCITRAL Model Law 2006
75
C.
Arbitration Agreement Signed by the Parties
80
D.
Arbitration Agreement by Exchange of Documents
80
1.
The Object of the Exchange: Exchange of Writings
81
2.
Means of Exchange: Use of Modern Communication
83
E.
Arbitration Agreements Evidenced by a Text without Signature or Exchange of Documents
85
F.
Requirements as to Form in Case of Arbitration Agreement by Reference
87
G.
Extension of the Arbitration Agreement to Non-signatories
93
H.
Scope of the "in Writing" Requirement in Cases of Agency
94
IV.
Article II(3)
95
A.
General
95
B.
The "Competence---Competence" Principle Under National Law
95
1.
Competence---Competence under French Law
96
2.
Competence---Competence under Swiss Law
97
3.
Competence---Competence under German Law
99
C.
Referral to Arbitration under Article II(3)
100
1.
Scope of Application of Article II(3)
100
2.
Requirements of Article II(3)
102
3.
Agreements that Are "Null and Void, Inoperative or Incapable of Being Performed"
103
4.
Scope of Review by the National Courts
109
5.
Procedural Consequences of Article II(3)
110
Article III / Andreas Borner
115
I.
Introduction
116
II.
Legislative History
118
III.
Content
120
A.
Procedural Issues that Arise with Recognition (or Petitions for Exequatur or for Leave for Enforcement)
121
1.
Types of Proceedings, Where to Bring Them, and Other Restrictions that May Be Applied to Enforcement Proceedings
121
a.
Type of Proceedings
121
b.
International Competence and Links to the Enforcing Country
123
c.
Immunity under International Law
126
d.
Security for Court Fees and Costs as a Condition to Commence Recognition (such as Exequatur) Proceedings
127
e.
Time Limits, Limitation Period
127
f.
Remedies
128
2.
Changes to the Award to Enchance Its Enforceability
129
a.
Specification of Currency, Tax, or Interest
129
b.
Non-monetary Claims
130
c.
Succession and Assignment
130
3.
Changes to the Award Because of Subsequent Events, in Particular Set-off
131
B.
Exclusivity of Recognition and Enforcement Proceedings
133
1.
Judgments Concerning Negative Declarations
133
2.
Recognition of a Foreign Judgment Concerning the Arbitral Award
135
3.
Award Creditor Seeking a Court Judgment Based on the Merits, Relying on the Arbitral Award Only by Way of Evidence
135
4.
Other Types of Judgments
136
C.
Procedural Issues Particular to Enforcement Proceedings
136
1.
Provisional Enforcement
136
2.
Immunity for Certain Assets
137
3.
Enforcement by Way of Attaching a Claim (Garnishee Orders)
138
D.
Anti-Challenge Injunctions
138
IV.
Proposals for the Future
140
Article IV / Dirk Otto
143
I.
Purpose and Legislative History of the Provision
145
A.
Comparable Provision in the Old Geneva Convention
145
B.
Deliberations of the New York Conference
146
C.
Final Provision
148
II.
Scope of Application
149
A.
General
149
B.
Difference between Recognition and Enforcement
149
III.
Formal Requirements
151
A.
Submission of the Award
151
1.
Written Form
152
2.
Names of the Parties
152
3.
Signatures of Arbitrators
153
4.
Other Requirements Regarding the Award
155
5.
Interim and Partial Awards, Interim Measures
155
6.
Other Types of Arbitral Decisions
158
B.
Submission of Arbitration Agreement
159
1.
Material Validity of the Arbitration Agreement
163
2.
Material Validity of the Award
168
3.
What if No Written Agreement Can Be Provided
168
a.
Earlier Court Decision Referred Parties to Arbitration
168
b.
Arbitration Agreed to in Court Proceedings
170
c.
Participation in Arbitration Proceedings Without Objections
171
d.
Other Cases
174
4.
Impact of the UN Convention on the Use of Electronic Communications in International Contracts
174
C.
Authentication and Certification
177
1.
Authentication
177
2.
Law Governing Authentication
178
3.
Certification
179
D.
When Is "Authentication" or "Certification" Required
179
E.
Who can Authenticate/Certify?
183
1.
Public Authority
184
2.
Arbitration Institution or Other Person
184
3.
Right of Parties to Contractually Modify Requirements?
186
F.
Early Preparation for Enforcement of Award
187
G.
Article IV Supersedes Domestic Law
187
1.
No Other Requirements for Applicant Intended by Convention
188
2.
Award Need Not Be Declared Enforceable in Country of Origin
188
3.
Additional Requirements Imposed by Certain National Laws
189
a.
Indonesia
190
b.
India, Bangladesh
190
c.
Bulgaria
191
d.
Malaysia
192
4.
Enforcement and "Merger of Award"
192
IV.
Translation of Award and/or Arbitration Agreement
193
A.
Purpose of Clause and Comparison to Geneva Convention
193
B.
Certified Translation
194
1.
Does Article IV(2) Give the Enforcing Judge Discretion to Waive Translation?
194
2.
Time for Compliance with Formality
195
3.
What Is To Be Certified?
195
4.
Certified Translation According to the Lex Fori?
196
V.
Changes of Parties and Assignment of Award?
197
A.
Change of Parties before Arbitration Award is Rendered
197
1.
Assignment of an Arbitration Contract
197
2.
Assignment of Claims under an Award
198
B.
Impact on Enforcement Proceedings
199
VI.
Set-off/Counterclaim as a Defense?
200
A.
Counterclaim Finally Adjudicated by Court
200
B.
Counterclaim Adjudicated by Arbitration
201
C.
Counterclaim Unadjudicated
201
VII.
Outlook
202
Article V(1)(a) / Patricia Nacimiento
205
I.
General
206
A.
Overview Article V
206
B.
Court Discretion
207
C.
Exhaustive List of Grounds
209
D.
Burden of Pleading and Burden of Proof
210
E.
Preclusion
211
F.
Res Judicata
215
G.
Waiver
216
II.
Article V(1)(a)
216
A.
Legislative History
216
B.
Incapacity of a Party
218
1.
Content
218
2.
Scope of Application
218
3.
Applicable Law
219
4.
Government Entities and State-Owned Companies
220
C.
Invalidity of Arbitration Agreement
221
1.
Scope of Application
221
2.
Power of Final Decision of State Courts
222
3.
Applicable Law
224
a.
The Parties' Choice of Law
224
b.
Applicable Law in the Absence of a Choice of Law
225
c.
Formal Validity of the Arbitration Agreement
226
d.
Material Validity of the Arbitration Agreement
227
Article V(1)(b) / Johanna Klein Kranenberg
231
I.
Introduction
232
II.
Due Process Exception as Related to Public Policy Exception
234
A.
Due Process and Public Policy Exceptions Often Considered Jointly Despite Differing Burdens of Proof
234
B.
Invocation of Either the Due Process or Public Policy Exception Does Not Preclude Invocation of the Other
237
III.
Law Applicable to Due Process Exception: Seat of Arbitration and Enforcing State Both Considered Relevant
237
IV.
Proper Notice under Article V(1)(B)
241
A.
Meaning of "Proper Notice"
241
B.
Parties May Be Notified in Accordance with Contractual Provisions in Most Cases
242
C.
Time Limits for Notice
244
D.
Party Objecting to Enforcement Must Prove Lack of Notice
245
V.
Party Facing Enforcement Must Have Had an Opportunity To Present a Case
246
A.
To Present a Case, Party Must Have Opportunity To Reply to Allegations and Evidence of Other Side
246
B.
An Arbitral Tribunal Need Not Consider All Evidence a Party Wishes to Present
248
C.
Language of the Proceedings Need Not Be That of the Parties
251
D.
Party Must Have Been Prejudiced by Lack of Opportunity to Present Case
252
E.
Active Participation in the Arbitration Waives Due Process Objection
253
VI.
Due Process Exception Does Not Operate To End Party Autonomy by Imposing Specific Procedural Requirements
256
Article V(1)(c) / Bethany Davis Noll
257
1.
Introduction
258
A.
Overview
258
B.
General Principles
259
C.
Application of V(1)(c) Defense
259
D.
Narrow Construction and Presumption That Arbitrators Acted Within Scope of Authority
260
E.
Relation to Other Defenses Under Local Law
262
F.
Legislative History
264
II.
The Arbitration Agreement and the Arbitrator's Mandate
265
III.
Scope of the Arbitrator's Authority
266
A.
Time Calculations
266
B.
Consolidation of Arbitrations
267
C.
Decisions Made Nunc pro Tunc
267
D.
Decisions to Disregard a Substantive Contractual Provision
268
E.
Ultra Petita
268
F.
Death of the Arbitrator
271
G.
Extraneous or Outside Evidence
271
IV.
Tribunal's Choice of Substantive Law
272
A.
Particular Legal Theory Chosen by the Tribunal
272
B.
Particular Body of Substantive Law Chosen by Tribunal
272
V.
Kompetenz-Kompetenz
273
VI.
Arbitrability of Statutory Claims
275
VII.
Partial Enforcement
276
A.
Infra Petita
277
VIII.
Parties to the Contract
277
IX.
Applicability of an Arbitration Clause in an Earlier Agreement to Disputes Concerning a Later Agreement
279
Article V(1)(d) / Patricia Nacimiento
281
I.
Introduction
282
II.
Applicable Law
283
A.
Party Autonomy
283
1.
Limits of Party Autonomy
284
2.
Direct Restrictions by National Mandatory Law?
285
3.
Form of the Choice-of-Law Provision
287
B.
Law of the Country Where the Arbitration Took Place
288
III.
Composition of the Arbitral Authority and Incorrect Procedure
288
A.
Composition of the Arbitral Authority
288
1.
Improper Composition as a Ground to Refuse Recognition and Enforcement
288
2.
Examples of Potentially Defective Tribunal Composition
290
B.
Incorrect Procedure
293
C.
Causality/Substantiality
298
D.
Preclusion
299
Article V(1)(e) / Nadia Darwazeh
301
I.
Introduction
302
A.
An Overview of Article V(1)(e)
303
B.
Drafting History Culminating in the Adoption of Article V(1)(e)
304
1.
Shortcomings of the Geneva Framework
305
2.
The New York Convention Sought to Address the Geneva Framework Shortcomings
306
a.
Limitation of Available Defenses to Enforcement
306
b.
Elimination of the "Double Exequatur" Requirement
306
c.
The Enforcing Courts Have Discretion to Refuse the Enforcement of Awards
308
II.
Grounds for Refusing the Enforcement of Awards Under Article V(1)(e)
311
A.
The Award is Not "Binding"
311
1.
Should the Concept of "Binding" Be Given an Autonomous Meaning?
312
2.
Should the Concept of "Binding" Be Determined According to the Law of the Country of Origin?
313
3.
The Meaning of "Binding" Differs From Country to Country
314
a.
Australia
314
b.
Belgium
314
c.
People's Republic of China
315
d.
France
315
e.
Germany
316
f.
Italy
316
g.
Netherlands
317
h.
Sweden
317
i.
Switzerland
318
j.
United States
318
B.
The Award Has Been Set Aside
319
1.
Where Can an Award Be Set Aside?
319
a.
"The Country In Which the Award Was Made" Means the Place of Arbitration
320
b.
"Under the Law of Which the Award Was Made" Refers to the Applicable Arbitration Law
321
2.
The Effect of an Annulled Award on Its Enforcement Varies from Country to Country
324
a.
The Territorial Approach
326
i.
People's Republic of China
329
ii.
Germany
329
iii.
Italy
330
iv.
Netherlands
330
v.
Sweden
331
vi.
Switzerland
331
b.
The Delocalized Approach
331
i.
France
334
ii.
United States
337
iii.
England
340
iv.
The Parties' Agreement To Exclude Set-Aside Proceedings
341
C.
The Award Has Been Suspended
342
III.
Conclusion
343
Article V(2) / Omaia Elwan
345
I.
Purpose and Legislative History of the Provision
346
A.
Provisions of the Draft Convention
347
B.
Provisions of the Geneva Convention
347
C.
General Remarks
348
II.
Subject Matter Not Capable of Settlement by Arbitration
348
A.
Choice of Law to Determine Arbitrability
349
B.
Typical Situations Where Arbitrability May Be Questioned
349
1.
Disputes Between a Company and Its Shareholders
349
2.
Administrative Contracts
350
3.
Act of State Doctrine
353
4.
Agency Agreements
354
5.
Bankruptcy
355
6.
Mandatory Legal Requirements
355
a.
Competition and Cartel Issues
356
1.
The US Position and the Look Back Doctrine
356
2.
European Union
357
3.
Australia and New Zealand
357
4.
Other Countries
358
5.
Second Look Doctrine
358
b.
Securities Transactions
359
c.
Consumer Contracts
360
d.
Trade Sanctions and Embargoes
361
e.
Tort Claims
362
f.
Supra-National Laws
362
7.
Other "Non-arbitrable" Situations
363
III.
Violation of Public Policy
365
A.
Concepts of Public Policy May Change
367
B.
Preclusion
368
C.
Applicable Law
369
D.
Examples and Case Law Relating to Public Policy
369
1.
Impartiality of the Arbitrator as a Violation of Public Policy
369
2.
Allegations of Bribery or Illegality as a Violation of Public Policy
372
3.
Fraud as a Violation of Public Policy
374
4.
Award Without Reasons as a Violation of Public Policy
375
5.
Violation of Time Limits as a Violation of Public Policy
377
6.
Violation of Laws as a Violation of Public Policy
378
a.
Bankruptcy Laws
378
b.
Competition Laws
382
c.
Consumer Protection Laws
384
d.
Exchange Control Restrictions
384
e.
Export/Import Restrictions and Other Government Restrictions
386
7.
Lack of Due Process as a Violation of Public Policy
387
a.
Right to Be Heard
387
b.
Violation of Procedural Laws
389
c.
Islamic Legal Principles
390
d.
Opportunity to Present Evidence
390
8.
Other Examples (A to Z)
391
a.
Violation of Public Policy Affirmed
391
b.
No Violation of Public Policy
394
E.
Waiver and Estoppel
406
F.
Impact of Arbitration Award or Judgment of a Court at Place of Arbitration on Defenses Under Article V
410
IV.
Remedy: Refusal of Enforcement
410
V.
Is Partial Recognition and Enforcement Possible?
413
Article VI / Scott Ethan Bowers
415
I.
Introduction
416
II.
Legislative History
417
III.
Application of Article VI: Adjournment Applications
419
A.
Overview
419
B.
Single Factor Approach: Using Probability of Success as a Threshold for Granting Adjournment Applications
421
1.
Australia
422
2.
Belgium
423
3.
Hong Kong
423
C.
Multi-Factor Approach to Adjournment Applications
424
1.
Canada
425
2.
Cayman Islands
427
3.
England
427
4.
Germany
429
5.
Netherlands
429
6.
Sweden
430
7.
United States of America
430
D.
Refusal to Grant Adjournment Applications
433
1.
France
433
IV.
Application of Article VI: Security
434
A.
Overview
434
B.
Case Law
436
1.
United States of America
436
a.
Form of Security
437
b.
Amount of Security
437
c.
Waiver of Sovereign Immunity
437
2.
Canada
438
3.
England
439
4.
Hong Kong
440
5.
Australia
441
6.
Cayman Islands
441
Article VII / Dirk Otto
443
I.
Purpose and History
444
A.
Corresponding Provision of Geneva Convention
444
B.
Modification to the Original Proposal
445
II.
Significance and Meaning of Subsection 1
446
A.
Other Treaties
446
1.
Important Arbitration Conventions
446
2.
The Convention's Relationship to Other Treaties
446
B.
More Favorable Laws
448
1.
Use of "More Favorable Laws"
448
2.
Critical Analysis
450
3.
"More Favorable Rights" Provision May Only Be Used to Ease Enforcement
452
III.
Replacement of the Geneva Convention and Protocol
452
A.
History of Subsection 2
453
B.
Current Status of the Geneva Convention
454
1.
Convention on the Execution of Foreign Arbitral Awards
454
2.
Protocol on Arbitration Clauses
460
C.
Current Status
468
1.
Myanmar
469
2.
British Dependencies and Overseas Territories
469
3.
Former British Dependencies
470
4.
New Zealand Territories and Former Territories
472
Article VIII / Dirk Otto
475
I.
Purpose and History
475
A.
Subsection 1: Who May Join
476
B.
Technique of Ratification
477
II.
Practical Significance
478
Article IX / Ximena Fuentes
479
I.
Purpose and History
479
II.
Current State Parties to the Convention
480
III.
Alternatives to Accession for Special Administrative Regions within the Territory of a Contracting State
482
Article X / Ximena Fuentes
483
I.
Introduction
484
II.
Historical Development of Article X
484
III.
Declarations Concerning Territorial Scope of Application According to the UN Treaty Series
487
IV.
Action Taken by Former Dependent Territories with Regard to the NY Convention
490
Article XI / Dirk Otto
493
I.
History
494
II.
Impact of Article XI
495
Article XII / Dirk Otto
497
I.
Purpose and History
498
II.
Deposit of Instruments of Ratification/Accession
498
A.
Domestic Application of the Convention
498
B.
Evidence Requirements
499
III.
Retroactive Effect of Convention
501
A.
Award Made in a Country Before Convention Entered into Force for that Country
502
B.
Award Made Before the Enforcing State Became Party to the Convention
504
C.
Arbitration Agreements Signed Before Convention's Entry into Force
505
D.
Status of the Convention
507
Article XIII / Jessica R. Simonoff
531
I.
Introduction
532
II.
Purpose of Article XIII
532
III.
Denunciation of Treaties Generally
533
IV.
Why Have States Refrained from Denouncing the Convention?
534
A.
Public Policy Exception to Award Enforcement
535
B.
Reservations to Convention Provisions
535
C.
No Sanctions for Refusal to Enforce Awards
538
Article XIV / Patricia Nacimiento
541
I.
Introduction
541
A.
Overview: Reciprocity Clauses in International Context
541
B.
Legislative History
542
II.
Content
544
A.
Significance of Article XIV
544
B.
Relationship between Article XIV and Article I(3)
545
Article XV / Patricia Nacimiento
551
I.
General/Introduction
552
II.
Content of Article XV
552
III.
List of Declarations of Subscribing States
553
Article XVI / Philippe Pinsolle
555
I.
Overview of Article XVI
555
II.
Authentic Languages and Interpretation of the New York Convention
556
Appendix 1
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention, 1958)
559
Appendix 2
Recommendation Regarding the Interpretation of Article II, Paragraph 2, and Article VII, Paragraph 1, of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards
565
Appendix 3
Convention on the Execution of Foreign Arbitral Awards (Geneva Convention, 1927)
569
Appendix 4
Protocol on Arbitration Clauses (Geneva Protocol, 1923)
573
References
577
Index
603