ARTICLE
27 August 2014

Enforcement Of Foreign Arbitral Awards And The Threshold Issue Of Jurisdiction

M
Matheson

Contributor

Established in 1825 in Dublin, Ireland and with offices in Cork, London, New York, Palo Alto and San Francisco, more than 700 people work across Matheson’s six offices, including 96 partners and tax principals and over 470 legal and tax professionals. Matheson services the legal needs of internationally focused companies and financial institutions doing business in and from Ireland. Our clients include over half of the world’s 50 largest banks, 6 of the world’s 10 largest asset managers, 7 of the top 10 global technology brands and we have advised the majority of the Fortune 100.
Ireland is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Ireland Litigation, Mediation & Arbitration

Ireland is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.  In Yukos Capital S.A.R.L. v OAO Tomskneft VNK (a recent case in which the firm acted for the successful respondent), the Commercial Court held that Irish Courts have discretion to refuse to accept jurisdiction over an attempt to enforce an arbitral award in Ireland.

The Court declined to exercise jurisdiction in this case, based on the facts, including that the case had no connection with Ireland, there were no assets within Ireland, and there was no real likelihood of assets coming into Ireland.  Other relevant factors that led the Irish Court to decline jurisdiction included that this was the fourth attempt on the part of Yukos Capital to enforce this arbitral award, and it would be unjust to require Tomskneft (a Russian company) to bear the burden and expense of defence in Ireland.  

The Court found little evidence to demonstrate any "solid practical benefit" to be gained by Yukos Capital in enforcing the award in Ireland and specifically observed that the desire of Yukos Capital to obtain a judgment from a "respectable" court had already been exercised in other jurisdictions, thus far without success.  

The decision highlights the relevance of personal jurisdiction in the enforcement of foreign arbitral awards before the Irish Courts.  It also confirms that Ireland's enforcement obligations under the New York Convention should be interpreted in light of the normal limitations on the Irish Courts' jurisdiction.  Accordingly, the question of jurisdiction is a threshold issue when it comes to the enforcement of foreign arbitral awards in Ireland.  This decision is under appeal to the Supreme Court.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More