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Chinese Court Enforces Foreign Emergency Arbitrator Order for the First Time

Wed, 21 Jun 2023
Categories: China Legal Trends

In 2021, the Beijing Fourth Intermediate People’s Court (hereinafter the Beijing Court) enforced an emergency order made by an arbitrator appointed by the Swiss Chamber of Commerce International Arbitration Institute (SCAI), which is believed to be the first time that a Chinese court has enforced a foreign emergency arbitration order and stayed the original enforcement of the arbitral award.

On 15 Dec. 2021, the Beijing Court suspended the enforcement of an SCAI arbitration award based on the award issued by the emergency arbitrator appointed by the SCAI.

Information about the case comes from a case report by Cyan Law Firm (采安律师事务所), a leading Chinese arbitration law firm.

On 22 June 2020, the Beijing Court issued Civil Ruling (2020) Jing 04 Xie Wai Ren No.3, recognizing and enforcing SCAI’s arbitration award No. 300386-2016 issued on 7 Jan. 2019.

The respondent filed a new arbitration application with SCAI, arguing that it was not jointly and severally liable under this award. On 22 Sept. 2021, SCAI determined that the respondent was indeed not jointly and severally liable. On 29 Sept. 2021, the respondent applied for emergency relief.

On 29 Oct. 2022, an emergency arbitrator appointed by the SCAI issued an award requiring the applicant not to enforce the original SCAI award.

After that, the respondent submitted such an order of the emergency arbitrator to the Beijing Court and provided a guarantee.

On 15 Dec. 2021, the Beijing Court issued Enforcement Ruiling No.2 (2020) Jing 04 Execution No. 210 to suspend the execution of the Civil Ruling (2020) Jing 04 Xie Wai Ren No.3.

According to Cyan Law Firm, this is the first case in which a Chinese court has respected the validity of a foreign emergency arbitrator’s order and stayed the original enforcement of arbitral award.

 

 

Cover Photo by Marc-Olivier Jodoin on Unsplash

Contributors: CJO Staff Contributors Team

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