The American Review of International Arbitration, Vol. 19 Nos. 3-4, 2008
34 Pages Posted: 17 Sep 2013
Date Written: September 16, 2013
The effectiveness of the enforcement system for arbitral awards determines the integrity and credibility of the arbitration system altogether. If award-creditors are unable to recover smoothly the amount of damages awarded by arbitral tribunals, arbitration will be rendered irrelevant to business. The aim of this article is to examine the current system of enforcement of arbitral awards and evaluate its effectiveness. The analysis, based on the findings of the Survey sponsored by PricewaterhouseCoopers, has yielded the following main conclusions.
First, enforcement proceedings are to some extent perceived by corporations as relatively inefficient. Consequently, corporations often choose not to rely on the current enforcement system to recover damages awarded by arbitral awards as they are particularly concerned with the costs and delays associated with the enforcement procedure.
Second, the parties tend to rely on alternative means to recover their awards. In essence, private means of enforcement of arbitral awards have been gradually developing through business practices. As is argued, these means of private enforcement are more flexible, more business-oriented and eventually more effective than the system of enforcement that has been established by domestic law in accordance with the New York Convention.
The third and final conclusion of the article relates to the current relevance of the New York Convention to arbitration practice. As is argued, the perceived or actual inadequacies of the existing enforcement system are mainly associated with the domestic mechanisms of execution rather than the New York Convention itself. Yet the New York Convention has now largely exhausted its contribution to the facilitation of the enforcement of arbitral awards.
Keywords: Arbitration, Arbitral Awards, Enforcement, 1958 New York Convention
Suggested Citation: Suggested Citation
Brekoulakis, Stavros, Enforcement of Foreign Arbitral Awards: Observations on the Efficiency of the Current System and the Gradual Development of Alternative Means of Enforcement (September 16, 2013). The American Review of International Arbitration, Vol. 19 Nos. 3-4, 2008. Available at SSRN: https://ssrn.com/abstract=2326368