chapter  8
16 Pages

Recognition and enforcement of judgments and awards

Party autonomy should also be respected at the recognition and enforcement stage. The final outcome of any dispute resolution methods is to have the decision enforced. Otherwise, the whole procedure has no practical value to the parties and constitutes a complete waste of time and money. Unfortunately, effective recognition and enforcement require the cooperation of other jurisdictions. If a country fully respects party autonomy and enforces all valid jurisdiction or arbitration agreements, while the enforcement country does not have the same policy to give effects to party autonomy, judgments made by the country of origin will not be enforced. This will, in return, cause the country of origin to doubt its policy supporting a valid dispute resolution clause and may make this country refuse to give effects to party autonomy in cases where judgments may hardly be enforced in the place of enforcement. On the other hand, if the enforcement country adopts a strong policy to refuse enforcement of judgments made in breach of a valid jurisdiction or arbitration clause, it may not affect the law and practice in another country but may make parties reluctant to breach a freely agreed dispute resolution clause. In the current law, recognition and enforcement of arbitral awards are relatively straightforward and certain given the successful enforcement of the New York Convention. Comparatively, recognition and enforcement of judgments are more problematic.