Refusal to Give Effect to Foreign Awards
Cross-border enforcement of commercial awards under the New York Convention (1958) remains a major force in the expansion of arbitration. The Convention prescribes a narrow set of situations in which the enforcing court can legitimately refuse recognition and enforcement. Within this topic there are two matters of special interest: first, there is the issue whether a national court’s annulment of the award at the seat of the arbitration will preclude such cross-border enforcement or whether the enforcing court can still give effect to the award, even if has been annulled locally at the seat; secondly, there is the issue whether the enforcing court can reliably obtain evidence of the foreign law applicable to the arbitration agreement. In the Dallah case (section 9.3 of this chapter) the English courts became embroiled in such a difficult issue.