Ireland is a signatory to the New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards. In
Yukos Capital S.A.R.L. v OAO Tomskneft VNK (a recent case
in which the firm acted for the successful respondent), the
Commercial Court held that Irish Courts have discretion to refuse
to accept jurisdiction over an attempt to enforce an arbitral award
in Ireland.
The Court declined to exercise jurisdiction in this case, based on
the facts, including that the case had no connection with Ireland,
there were no assets within Ireland, and there was no real
likelihood of assets coming into Ireland. Other relevant
factors that led the Irish Court to decline jurisdiction included
that this was the fourth attempt on the part of Yukos Capital to
enforce this arbitral award, and it would be unjust to require
Tomskneft (a Russian company) to bear the burden and expense of
defence in Ireland.
The Court found little evidence to demonstrate any "solid
practical benefit" to be gained by Yukos Capital in
enforcing the award in Ireland and specifically observed that the
desire of Yukos Capital to obtain a judgment from a
"respectable" court had already been exercised
in other jurisdictions, thus far without success.
The decision highlights the relevance of personal jurisdiction in
the enforcement of foreign arbitral awards before the Irish
Courts. It also confirms that Ireland's enforcement
obligations under the New York Convention should be interpreted in
light of the normal limitations on the Irish Courts'
jurisdiction. Accordingly, the question of jurisdiction is a
threshold issue when it comes to the enforcement of foreign
arbitral awards in Ireland. This decision is under appeal to
the Supreme Court.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
