PUBLIC ORDER IN INTERNATIONAL ARBITRATION: JUDICIAL PRACTICE IN THE UNITED STATES OF AMERICA

Abstract

Purpose of the research: One of the main purposes of the New
York Convention was to serve international trade and commerce and to facilitate
the enforcement of an arbitral award in one of the Contracting States in other
States. However, Article V (2) (b) allows a judge not to enforce a decision if its
execution would be contrary to public policy. This article examines the
experience of resolving such cases in the United States, which is one of the most
important jurisdictions in international commerce. The purpose of this article is
to consider how the concept of public policy is defined by the federal courts of
the United States and applied in the context of the recognition and enforcement
of arbitral awards. It first provides a brief analysis of the role of international
arbitration in the US legal system, followed by a broad analysis of American
case law. Methodology: formal logic, axiological methods, comparative legal
method. Research findings: American courts are following an established liberal federal policy that favors the enforcement of foreign arbitral awards. Public
policy is interpreted in a very narrow manner.