Lisbon Court of Appeal | New York Convention 1958 | Staying of the Recognition Procedure and Posting Adequate Security| 30-06-2011 | Case #0029

Lisbon Court of Appeal
Date: 30-06-2011
Case Nr. 2004/08.6TVLSB-A-7
LINK DGSI

Headline:

Art. VI of New York Convention provides for the staying of the recognition procedure when the annulment of the award is pending in the contracting State in which the award was made. It also provides that, in such event, the party seeking the recognition of the award may ask the court to compel the award debtor to post adequate security.

 

Summary:

  1. Art. VI of New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 provides for the staying of the recognition procedure when the annulment of the award is pending in the contracting State in which the award was made. It also provides that, in such event, the party seeking the recognition of the award may ask the court to compel the award debtor to post adequate security.
  2. Under Portuguese law, the staying of the recognition procedures may be obtained by a mere declaration of the court judge to stay the proceedings, whereas the provision of a security shall follow a different procedural route.
  3. The posting of a security may be a prior requirement for the staying of the proceedings, and may also be a mere reaction of the recognition procedure’s applicant to a stay that has been previously ordered. In any event, the posting of a security is aimed at protecting the rights granted by the award.
  4. Neither the “NYC1958”, nor the Portuguese law require that the posting of a security must be requested by the recognition’s applicant as a response to the request for a stay of the procedure. The request for posting of a security is admissible at any time during the suspension of the recognition procedure.

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