CHERYL M.

NAVARRO
2007-0026
ALTERNATIVE DISPUTE RESOLUTION
Atty. Ever Higuit

Recognition and Enforcement of Arbitral Award

Facts: A and B agreed to have UK as the place of their arbitration. Award

was rendered in UK.

Issue: Will the award need recognition alone or recognition and

enforcement?

Answer:

According to Article I of the New York Convention of 1958, also known as

the Convention on the Recognition and Enforcement of Foreign Arbitral
Awards (done at New York, on 10 June 1958), the Convention shall apply
to the recognition and enforcement of arbitral awards made in the territory
of a State other than the State where the recognition and enforcement of
such awards are sought, and arising out of differences between persons,
whether physical or legal. It shall also apply to arbitral awards not
considered as domestic awards in the State where their recognition and
enforcement are sought. Therefore, inference may be drawn from the
abovementioned provision that foreign arbitral awards may be defined as
follows:

1. Arbitral awards made in the territory of a State other than the State
where the recognition and enforcement of such awards are
sought, and arising out of differences between persons, whether
physical or legal; and,

2. Arbitral awards not considered as domestic awards in the State

where their recognition and enforcement are sought.

The Philippines is a party to the Convention. The Philippine Senate

concurred to its ratification by virtue of Senate Resolution No. 71.
Under RA 9285 (An Act to Institutionalize the Use of An Alternative
Dispute Resolution System in the Philippines and to Establish the
Office for Alternative Dispute Resolution, and for other Purposes):

 "Convention Award" means a foreign arbitral award made in a

Convention State.

 "Convention State" means a State that is a member of the New York

Convention.

The UK is also a party to the Convention, It ratified the Convention on 24

September 1975

Therefore, the award issued in UK is a foreign arbitral award given the

fact that its recognition and enforcement are sought in the
Philippines, a country other than territory where the award was
issued.