Under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) (the New York Convention), the enforcement of an arbitral award made in one New York Convention State in another New York Convention State is, generally, quick and straightforward. However, complications do arise. For example, what happens when (i) an arbitral award is made in country A, (ii) an application to set aside that arbitral award is made to the national courts of country A, and (iii) enforcement of the award is then sought in country B before determination of the application in country A? Furthermore, what happens when the application in country A is unsuccessful but an appeal is brought against that decision? That was the scene faced by the courts of the British Virgin Isles (BVI) and the Cayman Islands in Conocophillips China Inc v Green Dragon Gas Ltd, which raises interesting public policy issues. This article explores the reasons why different approaches were taken by the BVI and Cayman courts, and the approach which the offshore courts are likely to take in the future.

Statutory Rules on the Enforcement of Foreign Arbitral Awards

The New York Convention provides an extensive enforcement regime, under which foreign arbitral awards shall be enforced by the New York Convention member states, and enforcement may only be refused in a limited number of enumerated exceptions. Its purpose is to facilitate the enforcement of awards, while at the same time upholding the generally recognised principles of justice and respecting the sovereign rights of member states.

Type

Insight

Locations

Cayman Islands

Share
Twitter LinkedIn Email Save as PDF
More Publications
13 Sep 2021 |

Loans & Secured Financing in the Cayman Islands 2021

First published in Getting the Deal Through 2021. This practice guide provides topical analysis of L...

Contributors: Alexandra Simpson
21 May 2021 |

2021 - A Jekyll and Hyde Year for SPACs

In this article we offer our views on why this has happened and look ahead to the future for SPACs a...

Contributors: Dean Bennett
13 May 2021 |

The 2021 Cayman Islands Real Estate Guide

The Real Estate 2021 guide provides the latest legal information on the impact of disruptive technol...

Contributors: Norman Klein
13 May 2021 |

British Virgin Islands: Mergers & Acquisitions Comparative Guide

This country-specific Q&A provides an overview to Mergers & Acquisitions laws and regulati...

Contributors: Brittany Cummings
13 May 2021 |

Cayman Islands: Mergers & Acquisitions Comparative Guide

This country-specific Q&A provides an overview to Mergers & Acquisitions laws and regulati...

Contributors: Dean Bennett, Vance Power
15 Apr 2021 |

6 months on: Temporary relocation and residency by investment continues to increase in popularity

Six months on from the new digital nomad programmes, did the predicted upward trend reflect the real...

25 Mar 2021 |

Full Steam Ahead at the Jersey Ships Registry

Against a backdrop of uncertainty surrounding Brexit and the difficulties created by the global pand...

24 Mar 2021 |

Economic Substance update Q1 2021

Economic Substance update Q1 2021

12 Mar 2021 |

Material adverse change clauses in light of the Covid-19 pandemic

Experts from each of our key global offices provide jurisdiction specific advice and answer question...