ENFORCEMENT OF FOREIGN ARBITRAL AWARDS IN THE UNITED STATES
A foreign arbitral award is only as good, of course, as its actual enforceability. Thankfully, because of wide adoption of the New York Convention and its presumption of the enforceability of foreign arbitral awards in any of its 172 contracting states, prevailing parties can relatively easily have foreign arbitral awards recognised as an enforceable judgement where award-debtors or their assets are found.
Because so many international companies conduct business or have assets in the US, the ability to enforce an award in the US is particularly helpful to many parties making foreign investments or entering into contracts with foreign parties with an arbitration clause. This article discusses issues to consider when attempting to enforce or challenge the enforcement of a foreign arbitral award in the US.
Applicable treaties and US statutes governing enforcement
Enforcement of foreign arbitral awards in the US is facilitated primarily by the US’ ratification of the New York Convention, formally, the New York Arbitration Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Chapter 2 of the US Federal Arbitration Act (FAA) codifies the New York Convention. The Panama Convention, formally the Inter-American Convention on International Commercial Arbitration, also covers enforcement of awards rendered in any of the 19 contracting parties’ territories. Chapter 3 of the FAA codifies the Panama Convention. State laws may be applicable to the extent not pre-empted by the FAA.
Apr-Jun 2023 issue
Quinn Emanuel Urquhart & Sullivan, LLP