Author granted license

Creative Commons Attribution-Non Commercial-Share Alike 4.0 International

Document Type

Book Chapter

Publication Date

2001

Editor(s)

Robert Briner, L. Yves Fortier, Klaus Peter Berger & Jens Bredow

ISBN

9783452249098

Publisher

Carl Heymanns Verlag KG

Language

en-US

Abstract

Judicial review of arbitral awards constitutes a form of risk management. In most countries courts may vacate decisions of perverse arbitrators who have ignored basic procedural fairness, as well as those of alleged arbitrators who have attempted to resolve matters never properly submitted to their jurisdiction. In some countries judges may also correct legal error or monitor an award's consistency with public policy.

Public scrutiny of arbitration is inevitable at the time of award recognition. Judges can hardly ignore the basic fairness of an arbitral proceeding when asked to give an award res judicata effect by seizing assets or staying a court action.

Less evident is why the arbitral situs should necessarily monitor an award prior to an enforcement action. When the controversy is international, an arbitral situs is often chosen only for geographical convenience or procedural neutrality.4 If a dispute involves neither property nor activity at the place of arbitration, that country might arguably dispense with allocation of judicial resources toward review of the arbitrator's decision. At least one scholar suggests complete elimination of pre-enforcement judicial review.

The thesis of this modest note in honor of Professor Boeckstiegel is that judicial review of awards at the place of arbitration usually does make sense in international arbitration. Court scrutiny of an arbitration's integrity promotes a more efficient arbitral process by enhancing fidelity of the parties' shared pre-contract expectations. In some instances review also furthers the development of commercial norms to guide business managers in planning future transactions.

Comments

reprinted 16 Int’l Arb. Rep. 27 (November 2001)

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