International Commercial Arbitration Posts

Project Spotlight: Restatement of the Law of International Arbitration Is Close to Completion

Parties to international contracts have long chosen arbitration as the preferred method to resolve disputes; among other reasons, it provides them with a neutral decision-maker, rather than the home courts of either party, and international arbitration awards are more easily enforced than court judgments because of the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards (commonly known as the New York Convention), which celebrates its 60th anniversary this year. Moreover, a web of more than 3000 bilateral and multilateral investment treaties offers arbitration if an investor believes that the state has violated a promise under that treaty, and the number of such investor-state arbitrations has grown significantly.

The Role of Courts in the Arbitrator Selection Process – Part 2

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This is the second post presenting Sections from the 2018 International Commercial and Investment Arbitration Annual Meeting draft that deals with the roles that courts might play during the pendency of international arbitral proceedings. The previous post presented the Black Letter and Comments from § 3-2, Court Appointment and Removal of Arbitrators.

The Role of Courts in the Arbitrator Selection Process – Part 1

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On May 21, ALI membership will be presented with Tentative Draft No. 6 of the Restatement of the Law, The U.S. Law of International Commercial and Investment Arbitration. This draft includes Chapter 3, which addresses the roles that courts might play during the pendency of international arbitral proceedings.

Enforcing New York Convention Awards In the United States: Getting It Right

In the course of its decision in GBF Industria de Gusa S/A v. AMCI Holdings, 850 F.3d 58 (2d Cir. 2017), cert. den., 138 S.Ct. 557 (2017), the U.S. Court of Appeals for the Second Circuit referred to the “confusion” that sometimes accompanies applications to U.S. district courts to reduce arbitration awards to judgment. It went on to provide the following guidance for the avoidance of such confusion in the future:

… we encourage litigants and district courts alike to take care to specify explicitly the type of arbitral award the district court is evaluating (domestic, nondomestic, or foreign), whether the district court is sitting in primary or secondary jurisdiction, and, accordingly, whether the action seeks confirmation of a domestic or nondomestic arbitral award under the district court’s primary jurisdiction or enforcement of a foreign arbitral award under its secondary jurisdiction.

English Court of Appeal Clarifies Test for Abuse of Process in Subsequent Litigation Collaterally Challenging an Arbitral Award

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The English Court of Appeal in Michael Wilson & Partners v. Sinclair [2017] EWCA Civ 3 has clarified that a subsequent litigation is not an abuse of process for being a collateral attack against a previous arbitral award, where the respondent to the litigation was not a party to the earlier arbitration. The case reiterates that non-parties to an arbitral award are not bound by it, but in so doing are exposed to the risk of being separately sued in court.