Public Policy as a Ground for Refusing Recognition and Enforcement of Foreign Arbitral Awards

Abstract

This research paper examines and analyses the public policy defense regarding refuse recognition and enforcement of foreign arbitral awards. This defense is regulated through several enforcement conventions and laws, particularly New York Convention on recognition and enforcement of arbitral award beside the UNCITRAL Model Law on International Commercial Arbitration. Public Policy term is controversial as there is no uniform definition of the term. Different states have different meanings for ‘public policy’. Therefore, if enforcement of an arbitral award is refused in one country because of public policy considerations, it might be necessary to find another country that does not apply the public policy exception. The purpose of this study is to examine and explore the role that public policy plays in the international forum, as it affects the practice of international commercial arbitration. This research will be divided to four chapters. In the first chapter, it will briefly explore the background and meaning of international commercial arbitration and its legal framework. The second chapter will explore and discuss the role of enforcement conventions and the model law that covered public policy. The third chapter covers the public policy exception and examines the concept of public policy as it applies to international commercial arbitration. It will also discuss critically the application and impact of the public policy defense in arbitration based on many cases. Finally, the fourth chapter will be the conclusion. Overall, this paper is an attempt to trace one ground of refusing foreign arbitral award and thereby to reach satisfactory conclusions.