​Recognizing and Enforcing Arbitration Awards

Recognizing and Enforcing Arbitration Awards
 
Arbitration awards often take effect on the day they are made rather than waiting for delivery. In the instance of an agent seeking recognition and enforcement of an arbitration award, if the losing party fails to meet the duties outlined in the award, the victorious party must normally seek enforcement from the court. Civil litigation attorneys should handle such enforcement efforts. As a result, courts restrict counsel for the recognition and implementation of arbitration results to domestic (state) attorneys in most nations. Suppose an application for recognition and execution of an arbitration award must be made in another nation. In that case, the agent lawyer may need to hire a lawyer in that country to handle it.
 
 
The time restriction for requesting recognition and execution of an arbitration award varies by nation, ranging from 28 days in the United Kingdom to 6 months in China. The agent's lawyer should closely monitor the time restriction for seeking recognition and execution of an arbitration award.
 
In New York Convention Member States, Recognition and Enforcement of Arbitration Awards
 
(1) Request from the enforcing party
According to the New York Convention, the original award, a certified copy, the original arbitration agreement, or a certified copy must be provided to the court at the application site for enforcement.
There are typically three judicial practices in different countries for recognizing and enforcing an arbitration award under the New York Convention: direct recognition and enforcement of the award, recognition, and enforcement after a judicial review, and recognition and enforcement as a domestic judgment.
Even if the arbitration award is overturned, the court in the site of application for enforcement may nevertheless accept and enforce the award, according to the New York Convention.
 
(2) Application by the obligor
Even if the motion to set aside the arbitration award fails, the losing party may still seek non-recognition and non-enforcement of the award in the court in the place of enforcement.
The grounds for the losing party to apply to the court of the place of enforcement for non-recognition and non-enforcement of the award are similar to those for the application to set aside the award, but with the addition that "the arbitration award has not yet taken effect or is suspended by a competent court," according to the New York Convention. Moreover, there may be additional grounds for the court in the enforcement site not to recognize and enforce the award. Thus the agent lawyer must thoroughly research the relevant legal rules and processes.
 
Recognizing and Enforcing Arbitration Awards in States Not Parties to the New York Convention
 
Suppose there is a comparable bilateral agreement or judicial aid convention between the nation where the arbitration occurred and the country where the application for enforcement is lodged; an arbitration award may be accepted and enforced in a non-New York Convention member state. The arbitration award may only be recognized or executed if the two nations have a relevant bilateral agreement or judicial aid convention.
If the arbitration award is not recognized and enforced, the agent lawyer may advise the parties to renegotiate the arbitration or launch a direct lawsuit.