ABSTRACT

On a few occasions, the courts have recognised the potential difficulty in the recovery of funds or enforcement of orders in foreign jurisdictions. This has had the effect of being included as a factor in the deliberation in granting relief where the fraud exception has been argued. In Gerald Motors Inc v UBS AG,144 one factor involved the court’s attitude to the Chinese legal system. The court stated that the American corporation ‘may well encounter significant obstacles in the Chinese judicial system…the likelihood of getting the money back once it is paid is greatly decreased’. Similar considerations were made in the Iranian cases in the 1980s.