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U. S. Court Demonstrates Pro-Enforcement Bias in a Comprehensive Review of a Cietac Award Under the New York Convention

U. S. Court Demonstrates Pro-Enforcement Bias in a Comprehensive Review of a Cietac Award Under... U. S. COURT DEMONSTRATES PRO-ENFORCEMENT BIAS IN A COMPREHENSIVE REVIEW OF A CIETAC AWARD UNDER THE NEW YORK CONVENTION David E. Wagoner* In one of the first cases brought in U.S. Courts to enforce a Chinese (CIETAC) arbitration award under the New York Convention, the Court rejected a claim of fraud on the Arbitration Tribunal and endorsed the pro-enforcement bias of the Convention. Challenges to the award were limited to those specified in the Convention, a claim of manifest disregard of the law was rejected and issues litigated by the Tribunal were not re-examined by the Court. The Court ruled that although the parties were bound by the CIETAC procedural rules to which they had agreed, a claim of violation of due process could be raised to resist enforcement of the award. ' The Controversv: The controversy arose over the sale of plywood by an American company, Louisiana-Pacific Corporation (LPC) to a Chinese company, Shenzhen Foodstuff-Drinks Industrial Import and Export Company (Shenzhen). The contract required LPC to deliver plywood to Shenzhen at Shanghai , China and for LPC to be paid through a letter of credit arrangement. LPC was to present contractually specified documents to the Bank of http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png ASA Bulletin Kluwer Law International

U. S. Court Demonstrates Pro-Enforcement Bias in a Comprehensive Review of a Cietac Award Under the New York Convention

ASA Bulletin , Volume 16 (2) – Jun 1, 1998
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Publisher
Kluwer Law International
Copyright
Copyright © Kluwer Law International
ISSN
1010-9153
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Abstract

U. S. COURT DEMONSTRATES PRO-ENFORCEMENT BIAS IN A COMPREHENSIVE REVIEW OF A CIETAC AWARD UNDER THE NEW YORK CONVENTION David E. Wagoner* In one of the first cases brought in U.S. Courts to enforce a Chinese (CIETAC) arbitration award under the New York Convention, the Court rejected a claim of fraud on the Arbitration Tribunal and endorsed the pro-enforcement bias of the Convention. Challenges to the award were limited to those specified in the Convention, a claim of manifest disregard of the law was rejected and issues litigated by the Tribunal were not re-examined by the Court. The Court ruled that although the parties were bound by the CIETAC procedural rules to which they had agreed, a claim of violation of due process could be raised to resist enforcement of the award. ' The Controversv: The controversy arose over the sale of plywood by an American company, Louisiana-Pacific Corporation (LPC) to a Chinese company, Shenzhen Foodstuff-Drinks Industrial Import and Export Company (Shenzhen). The contract required LPC to deliver plywood to Shenzhen at Shanghai , China and for LPC to be paid through a letter of credit arrangement. LPC was to present contractually specified documents to the Bank of

Journal

ASA Bulletin – Kluwer Law International

Published: Jun 1, 1998

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