Annulled Arbitration Awards - Chapter 54 - Reflections on International Arbitration

During discussion of a problematic judicial decision, one friend chided another, “You need to get the facts, or the facts will get you.” The admonition proves vital not only in understanding specific cases, but also in formulating sound legal doctrine to address problems sharing a common core but manifesting themselves through wide variations of context.

One such context-driven policy conundrum lies in deciding when courts should enforce annulled arbitration awards, as illustrated by a currently unfolding saga with a punch line remaining in suspense as this essay goes to press. In April 2016, a Dutch court annulled awards totaling approximately US$50 billion in disputes between the Russian Federation and shareholders of the former Russian oil producer, Yukos Oil Company. The shareholders then brought enforcement actions in the United Kingdom, which has thus far declined to enforce the awards until Dutch courts decide appeals to the annulments.