borris ■ hennecke ■ kneisel rechtsanwälte
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3rd DIS Baltic Arbitration Days 2014 Riga, 27 June 2014. Set-off and other substantive law objections as defence against the enforcement of an arbitral award. Dr. Christian Borris, LL.M. BORRIS ■ HENNECKE ■ KNEISEL Rechtsanwälte. The issue. - PowerPoint PPT PresentationTRANSCRIPT
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Set-off and other substantive law objections as defence against the enforcement of an arbitral award
BORRIS ■ HENNECKE ■ KNEISELRechtsanwälte
Dr. Christian Borris, LL.M
3rd DIS Baltic Arbitration Days 2014Riga, 27 June 2014
![Page 2: BORRIS ■ HENNECKE ■ KNEISEL Rechtsanwälte](https://reader030.vdocuments.us/reader030/viewer/2022020117/56813026550346895d95b021/html5/thumbnails/2.jpg)
The issue
Set-off as a defence against enforcement of an arbitral award
Other substantive objections as defences against enforcement of an arbitral award
- E.g.: Award obtained by fraud
Procedural alternatives
BORRIS ■ HENNECKE ■ KNEISEL
Rechtsanwälte
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Position of the German Federal Court of Justice (BGH)
Set-off recognized as a defence against enforcement of an arbitral award
Reasoning: procedural efficiency
Jurisdiction of enforcement courts vs. jurisdiction of general courts of the first instance
Exceptions:
Set-off claim is subject to an arbitration agreement
Set-off claim could have been but was not raised during the arbitral proceedings
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BORRIS ■ HENNECKE ■ KNEISELRechtsanwälte
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Legal situation in other countries
USA: set-off not recognized as a defence (because it does not fall within any of the NY Convention defences)
Canada: set-off not recognised as a defence (because it does not fall within any of the defences according to the Model Law
BORRIS ■ HENNECKE ■ KNEISELRechtsanwälte
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Critique
Full right to be heard vs procedural efficiency
Loss of one instance
Enforcement proceedings not suited to deal with complex factual issues
Breach of the UN Convention: not one of the grounds for denying enforcement pursuant to Art. V?
BORRIS ■ HENNECKE ■ KNEISELRechtsanwälte
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BORRIS ■ HENNECKE ■ KNEISELRechtsanwälte
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