Starting your case from the end: strategic considerations on recognition and enforcement in commercial arbitration proceedings

The resolution of disputes through arbitration has many advantages. A neutral forum constituted by an independent and impartial tribunal often composed of experienced, multi-lingual and multi-qualified professionals.

Ad hoc or institutional arbitration rules with different features to apply flexibly to the most diverse type of disputes with different complexity and value. A general assumption that proceedings can be more time efficient and —possibly— less costly than proceedings before domestic courts. A final and binding award that is enforceable in 172 jurisdictions under the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

However, these features of arbitration may be deprived of their effectiveness if the losing party does not pay the award debt of its own accord. Equally, if there are no viable options to obtain the awarded sum back because the award is not recognised or enforced, or the assets of the opposing party have been dissipated, this amounts to a Pyrrhic victory which any counsel wants to avoid.

Therefore, in order to maximise the chances of a successful arbitration, it is crucial to think ahead about the conclusion of an arbitration case, specifically the recognition and enforcement phase.

Camilla Gambarini, Special Counsel in our international arbitration and public international law group in London, has drafted a chapter of the prestigious publication 40 Under 40 in International Arbitration  (2024 edition) dealing with strategic considerations on recognition and enforcement of arbitration awards. The book is available online on Kluwer Arbitration.