United Kingdom: Litigation, Mediation & Arbitration

The Technology and Construction Court recently allowed a contractor to resist enforcement of an adjudicator's decision by using the Civil Procedure Rules, marking a rare exception to the usual 'pay now, argue later' approach. This case examines when courts will intervene to prevent enforcement of adjudication decisions based on clear errors of law in contractual interpretation.

The Court of Appeal has ruled that ratifying the New York Convention does not waive a state's sovereign immunity in enforcement proceedings, creating a significant distinction from ICSID Convention protections. This decision clarifies the complex interaction between international arbitration treaties and state immunity rules, with important implications for investors seeking to enforce arbitral awards against sovereign states. The judgment contrasts sharply with recent Supreme Court precedent on ICSID award

The decision provides helpful guidance on how courts are likely to approach the question of whether to make such an order.