The public policy exception under art v 2 b of the new york convention
Download
1 / 11

The Public Policy Exception under Art. V (2) (b) of the New York Convention - PowerPoint PPT Presentation


  • 100 Views
  • Uploaded on

The Public Policy Exception under Art. V (2) (b) of the New York Convention. Dr. Anton G. Maurer, LL.M. CMS Hasche Sigle Schoettlestr . 8 D 70597 Stuttgart [email protected] Tel: +49 172 7333696. Art. V (2) (b).

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' The Public Policy Exception under Art. V (2) (b) of the New York Convention' - hamlin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
The public policy exception under art v 2 b of the new york convention

The Public PolicyExceptionunder Art. V (2) (b) of the New York Convention

Dr. Anton G. Maurer, LL.M.

CMS Hasche Sigle

Schoettlestr. 8

D 70597 Stuttgart

[email protected]

Tel: +49 172 7333696


Art v 2 b
Art. V (2) (b)

" Recognition andenforcement of an arbitralawardmay also berefusedifthecompetentauthority in thecountrywhererecognitionandenforcementissoughtfindsthat:

  • thesubject matter of thedifferenceis not capable of settlementbyarbitrationunderthelaw of thatcountry; or

  • therecognitonorenforcement of theawardwouldbecontrary to thepublicpolicy of thatcountry"

The Public PolicyException |25. Juni 2014 Dr. Anton G. Maurer


Interpretation of art v 2 b
Interpretation of Art. V (2) (b)

The publicpolicyexception was discussedcontroverselyandextensivelyduringthedraftingofthe New York Convention, especiallybetweenthecivillawcountryandthecommonlawcountryrepresentatives.

Howisthepublicpolicyexceptiontobeinterpreted?

Isit "international publicpolicy"?

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer


The public policy exception
The Public PolicyException

Final result:

It must beinterpretednarrowly!

This was unanimouslyapprovedbythe Working Party No. 3 whichdraftedthe final wordingof Art. V.

Itis not "international publicpolicy", but a narrowinterpretationofdomesticpublicpolicy.

However, some countries apply an evennarrower international publicpolicystandard!

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer


Narrow interpretation
Narrow Interpretation

Report by Mr. de Sydow for Working Party No. 3:

As regards Art. V (2) (b) "the Working Party feltthattheprovisionallowingrefusal of enforcement on grounds of publicpolicy

should not begiven a broadscope of application.

Itthereforeagreed to recommendthedeletion of references to thesubject matter of theawardand to fundamental principles of law."

(Summary Record of the 17th Meeting, U.N. DOC E/CONF. 26/SR. 17 at 3)

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer


International standard parsons whittemore overseas inc v societe generale de l industrie du papier
International Standard: Parsons & WhittemoreOverseas Inc. v. Societe Generale de L'Industrie du Papier

U.S. Court of Appeals forthe Second Circuit:

"The general pro-enforcementbiasin formingtheConvention … pointstoward a narrowreadingof thepublicpolicydefense. …

Weconclude, therefore, thattheConvention'spublicpolicydefenseshouldbeconstruednarrowly. Enforcement of foreignawardsmaybedeniedon thisbasisonlywhereenforcementwouldviolatetheforum'sState'smostbasicnotion of moralityandjustice."

(508 F.2d 969 et seqq. (December 23, 1974)

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer


Germany
Germany

Germany: "Ordre Public International"

  • Not everyviolationofmandatorylaw (iuscogens) will violate German publicpolicy.

  • "Onlyseveredefectsin thearbitralproceedingortheawardcouldviolate German publicpolicy. The defectsmust violate fundamental principlesofstateandeconomiclife."

  • Recognition of a foreignawardcanonlyberefusediftheproceedingortheawardsuffered a grave defectwhichisintolerably at oddswiththe fundamental principlesofstateandeconomiclife.

  • Possibleerroneousawards must beaccepted.

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer


France
France

France: International Public Policy

  • An arbitralawardshallberecognizedifitis"not manifestlycontraryto international publicpolicy."

  • The violation must beblatant, actual, andconcrete.

  • When all oftheparties, themembersofthearbitraltribunal, andeventhemembersoftheICC Court of Arbitration havefailedtoseetheallegedviolation, French courtsdid hold thattheallegedviolation was not blatant, real, andconcrete.

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer


China
China

China: Chinese Public Policy

  • isviolatedwhen an awardmaybedeemedtoviolatethesocialandpublicinterest

    • Whentheawardviolatesthebasicprinciplesreflected/regulated in theConstitutionortheFour Fundamental Principlesof China;

    • Will damagethesovereigntyor State securityof China;

    • Is in violationofthe fundamental rulesof Chinese law;

    • IsagainstChina'sobligationsunder international treaties;

    • Isagainsttheprinciplesoffairnessandjusticein international law.

    • The Four Fundamental Principlesare:

      Adhereto(a) thesocialistroad, (b) thepeople'sdemocraticdictatorship, (c) theleadershipoftheCommunist Party, and (d) toMarxism-LeninismandMao'sthought.

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer


Russia
Russia

Russia: Public PolicyoftheRussianFederation

Awards maybefoundtobeagainstthepublicpolicyoftheRussianFederationwhen, as a resultoftheenforcementoftheaward, actsareaffectedthat

  • aredirectlyprohibitedbylaworharmthesovereigntyorthesecurityofthe State;

  • affecttheinterestof a large socialgroup;

  • areincompatiblewiththeprinciplesofconstructingtheeconomic, politicaland legal systemsofthe State;

  • harmtheconstitutionalrightsandfreedomofcitizens; or

  • areagainstthebasicprinciplesofthecivil State, such astheequalitiyofitsmembers, theinviolabilityofpropertyandfreedomofcontract.

The Public Policy Exception |22. Juni 2014 Dr. Anton G. Maurer



ad