New York Appeals Court bars overseas enforcement of award -

On June 29, 2017, a New York state appellate court unanimously upheld an extraordinary lower court order in a decision that may have significant implications for the cross-border enforcement and recognition of arbitral awards. This case had seen a lower court vacate an arbitral award rendered in New York. The lower court then took the additional step of enjoining the holder of the vacated award (the “award creditor”) from taking any action anywhere in the world to enforce, execute or collect on the award.

While it remains to be seen whether this lower court order will have any practical effect, this highly unusual development adds another dimension to the already-contentious debate concerning the enforceability in secondary jurisdictions of awards that have been vacated by domestic courts at the seat of arbitration.