Is Fully Paid Award Enforceable Under the New York Convention?

Arbitration News – Is a Fully Paid Award Still Enforceable Under the New York Convention?

(Article by Dr. A. Tsavdaridis, published in the Arbitration Newsletter of the ILO on September 27, 2012)

The Supreme Court recently held that an amendment of claim or counterclaim in international arbitration is admissible, provided that a series of requirements
pertaining to the parties’ agreement, the tribunal’s permission and fundamental principles of justice are met. A request for preventive protection, even for future
disputes that are conditional on the occurrence of a certain event, is not groundless, provided that future disputes fall within the scope of the arbitration agreement.


The Organisation for Economic Reconstruction of Enterprises (OERE), a Greek statecontrolled entity active in the 1980s and 1990s, nationalised a paper mill company
whose shares were subsequently sold to a holding company. The share purchase agreement between OERE and the holding company contained an arbitration clause
providing that any dispute or difference arising out of or in connection with the share purchase agreement would be finally resolved through binding arbitration in Athens
under the International Chamber of Commerce (ICC) Rules of Arbitration. The Greek state (as legal successor to OERE after it was wound up) and the holding company
resorted to arbitration over a series of claims and counterclaims arising out of the share purchase agreement. The holding company raised a counterclaim for more than
13 million for various costs that were to be borne by OERE under the share purchase agreement. The holding company amended its counterclaim on March 23 2008 and
requested payment of the amount claimed to the paper mill company instead, after the Greek state had disputed its right to request payment for itself. The Greek state replied
to the amended counterclaim on April 2 2008 and the arbitral tribunal issued its award on April 4 2008, awarding approximately 12 million to the paper mill company.


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