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Cour d’appel, 27 February 2020, No. 25/20 - VIII - Exequatur
(SOC1.) sàrl v. SOC2.))
 

27 - 02 - 2020

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Yearbook Yearbook Commercial Arbitration, S. W. Schill (ed.), Vol. XLVI (2021)
Jurisdiction Luxembourg
Summary

The Court of Appeal denied the request to stay the enforcement proceedings because of a criminal investigation allegedly pending following a complaint filed by a manager of the appellant for acts of intimidation committed on behalf of the respondent. The Court held that the investigation would have no impact in any case on exequatur, since it was not one of the grounds for refusal provided for in the New York Convention. The Court then dismissed all the objections raised by the appellant, and granted enforcement.

Related topics
401

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.

Conditions to be fulfilled by petitioner in general
501

The court discusses questions relating to the general approach taken by the Convention to the grounds for refusal of recognition and enforcement, including its pro-enforcement bias, as well as the system of the Convention, under which recognition and enforcement may only be denied on seven listed grounds and the petitioner has only the obligations set out in Art. IV.

Grounds are exhaustive
505 Incapacity of party
514 Ground e: Award not binding, suspended or set aside - "Binding"
518

Public policy: The court discusses the meaning of (international as compared to domestic) public policy, generally defined as the basic notions of morality and justice of the enforcement State.

Paragraph 2 - Distinction domestic-international public policy
523

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.

Irregularities in the arbitral procedure (see also Art. V(1)(b))
524

Public policy: The court discusses the effect of other alleged violations of public policy on the recognition and enforcement of an arbitral award, such as contradictory reasons, manifest disregard of the law (US), etc.

Other cases
601

The court discusses the conditions for granting adjournment of a proceeding relating to the recognition and enforcement of an arbitral award, and the court’s discretionary power to do so, as well the determination of “suitable security” and the power to request it.

Adjournment of decision on enforcement
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