NEW YORK AT THE EPICENTRE OF INTERNATIONAL ARBITRATION
New York is not only a global financial centre, it is also a leading venue for international arbitration. Parties choose to arbitrate in New York for various reasons, including the well-developed nature of New York substantive law in commercial matters, the city’s international profile, and its deep pool of talented practitioners.
New York also has neutral courts with extensive experience in complex commercial disputes that follow a strong policy in favour of international arbitration. The New York Court of Appeals has emphasised “the long and strong public policy in favor of arbitration” and the Second Circuit (the federal appellate court covering New York) has held that the “federal policy favoring arbitration is even stronger in the context of international transactions”.
This article examines the legal framework for recognising and enforcing foreign arbitral awards in New York courts, as well as the limited grounds for challenging arbitration awards made in New York under the Federal Arbitration Act.
New York supports recognition and enforcement of arbitral awards
The United States is party to both the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (the New York Convention) and the Inter-American Convention on International Commercial Arbitration (the Panama Convention).
The New York Convention greatly enhances the portability of arbitral awards by identifying limited grounds for challenging the recognition and enforcement of awards made in another state that is party to the Convention. Domestically, the New York Convention is enacted in United States law as Chapter 2 of the Federal Arbitration Act.
Jul-Sep 2013 issue