Title: Annulment of Arbitral Awards against Backdrop of International Standards
Abstract: The annulment of arbitral awards is an instrument reserved exclusively for remedying exceptionally serious errors concerning the absence of arbitrability or the material scope of the arbitration agreement, as well as for reviewing compliance with essential procedural standards. Consequently, it is intended to serve as a control mechanism employed to ascertain whether the conditions for the exclusion of the jurisdiction of courts and for giving precedence to arbitral tribunals were fulfilled. The exclusion of the jurisdiction of courts must be counterbalanced by a special (qualified) standard concerning the possibility to enter into an arbitration agreement, the arbitration agreement itself, and selected principles applied in arbitration. This equilibrium must be the accomplishment desired by the authorities (courts) making decisions on the annulment (or not) of arbitral awards. The annulment of an arbitral award must never serve as a review of the decision on the merits. Consequently, it is always necessary to consider whether perhaps the application of any particular grounds for the annulment of an arbitral award may de facto result in a material review, i.e. a review of the factual or legal conclusions articulated by the arbitrators in their arbitral award. If the court concluded that such a review were indeed taking place, the annulment of the arbitral award would be prohibited. If a jurisdiction allows the annulment of an arbitral award for being contrary to public policy (ordre public), it is necessary to define such ordre public as an exceptional breach of fundamental legal standards. However, we cannot ignore the fact that only a few jurisdictions have accepted this reason for the annulment of an arbitral award, and its application is entirely exceptional.
Publication Year: 2018
Publication Date: 2018-10-01
Language: en
Type: article
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