Some of our members have experienced going through the arbitration process and a very few of those have been faced with an unfulfilled award. 90% of the arbitration cases administered by DRC are satisfied as decided by the arbitrator. Rarely there are cases of an unpaid arbitration award, the cause is usually due to the losing party declaring bankruptcy, filling for protection under the court, or debtors disappearing and leaving no assets behind.
When you receive an arbitration decision in your favour and the losing party does not want to pay it, there are steps you should take. Contact DRC immediately, as we may take disciplinary actions against the defaulting party which could include termination of membership. A second step would be for you to register and enforce the arbitration award with the courts.
The courts of the countries signatory to the New York Convention of 1958 and subsequent conventions regarding the recognition and enforcement of arbitration awards in court (168 signatory countries) are obligated to recognize and enforce these awards. DRC does not accept members from countries who are not signatory to the New York Convention of 1958 or other international treaties regarding recognition and enforcement of arbitral awards.
While it requires a lawyer to register and enforce the award by thecourt, this process is not complicated. DRC will provide most of the documents to enforce the award in court to your lawyer of choice. These documents usually include the arbitration agreement, the arbitration decision and award, and sometimes, the arbitration rules of the administering body (DRC). This process can last a couple of months and will result in a decision from the court.
Please remember we are here to support and assist our members. Contact the DRC Help Desk with any questions or concerns at:
DRC Help Desk | 613-234-0982 | Info@fvdrc.com