INTERNATIONAL ENFORCEMENT OF JUDGMENTS AND ARBITRAL AWARDS: CHALLENGES FOR CREDITORS, DEBTORS AND INTERNATIONAL BANKS
As companies do business in increasingly diverse locales, they also find themselves in ever-more-complicated disputes over the enforcement of international arbitration awards and cross-border litigation judgments.
Proper knowledge of the procedures for global enforcement of judgments and awards, once they have been obtained, has never been more necessary. But it is not always sufficient. A recent US court decision confirms how important it is for companies entering into international business transactions to consider the enforcement of judgments and arbitral awards when drafting contracts, long before any dispute has arisen.
Aggressive international judgment enforcement disputes have also entangled international banks and other third parties that hold judgment debtors’ assets or accounts, and in some US jurisdictions, third parties have been subjected to an increasingly complicated and ambiguous judgment enforcement regime.
Does your dispute resolution clause give you the right tools?
Many businesses have learned that an appropriate dispute resolution clause is an indispensable part of an international contract. Will disputes go to litigation or arbitration? Where will the dispute be heard, and what law will apply? By now, addressing these issues at the outset of a relationship hopefully is routine. But it can be just as important to include provisions from the start about will happen after the appropriate tribunal has rendered its decision.
Oct-Dec 2013 issue
Skadden, Arps, Slate, Meagher & Flom LLP