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CHILE 11
Corte Suprema de Justicia de Chile, First Civil Chamber, 5 July 2023, Case no. 124338-2020
(Qidong Adi Tools Manufacturing ... Read more
Corte Suprema de Justicia de Chile, First Civil Chamber, 5 July 2023, Case no. 124338-2020
(Qidong Adi Tools Manufacturing Co., Ltd v. Import Export Italy Trading SpA)
CHILE 11
The Supreme Court granted recognition and enforcement of a Chinese award, finding that the formal requirements for seeking exequatur were met and that there were no grounds for refusal. The defendant not having not raised any grounds, the Court noted on its own initiative that the defendant, which had not participated in the arbitration, had been duly notified of its commencement and development, so that its right to due process and public policy were not violated, and that the dispute concerned an international commercial contract and was therefore arbitrable. The Court applied the provisions of Chilean law mirroring Art. IV and Art. V of the New York Convention.
The court discusses the general conditions the Convention imposes on a petitioner for seeking recognition and enforcement of an arbitral award – namely, the submission of the original arbitration agreement or arbitral award or a certified copy thereof – and examines in general whether these conditions were complied in the case at issue.
The court discusses the principle that the merits of the award may not be reviewed and that the court may only carry out a limited review of the award to ascertain grounds for refusal.
Due process: The court discusses what constitutes “proper notice” of the appointment of the arbitrators or of the arbitration proceedings.
Public policy: The court discusses cases in which the subject matter of the award was not arbitrable in the enforcement State on public policy grounds.
Public policy: The court discusses alleged violations of a fundamental rule of due process in the arbitration on the recognition and enforcement of an arbitral award, including the failure to communicate the names of the arbitrators, the failure to send copies of reports or letters filed in the arbitration, etc.