What Happens at the Enforcement Stage of An Arbitration?
Did you know there are basically four ways an arbitration enforcement can be overturned? I’m Lara Pair, founder of Pair Fact Legal. In our last Arbitration Espresso video, I explained that the merits of a case are no longer a subject of discussion when it reaches the enforcement stage. So, what is? Let’s dive in.
The issues reviewed at the enforcement stage are whether due process and the fundamental principles of the law of a particular nation where the enforcement is to take place have been adhered to. There are four questions that are answered, assuming that an arbitration agreement existed:
Number one: were the procedure chosen by the parties followed?
Number two: was that procedure was fundamentally fair?
Number three: were the arbitrators unbiased and impartial?
Number four: would enforcement of the award violate the public policy of the enforcing nation?
The public policy encompasses only the most fundamental and important principles of that legal system. There are very few arbitral awards that are overturned or set aside on the basis of public policy. Once again, there is no substantive review of the merits of the case or the decision making of the arbitrator.