Some members have undergone the arbitration process, and only a few have encountered an unfulfilled award. 90% of the arbitration cases administered by DRC are satisfied as decided by the arbitrator. Rarely are there cases of an unpaid arbitration award. Causes may include the losing party declaring bankruptcy, filing 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 the 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 foreign arbitration awards in court (172 Contracting States) are obligated to recognize and enforce these awards. The DRC does not accept members from countries not signatories to the New York Convention or other international treaties regarding the recognition and enforcement of foreign arbitral awards.
While it requires a lawyer to register and enforce the award by the court, this process is simple. The DRC will provide 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 that we are here to support and assist our members. If you have any questions or concerns, contact the DRC Help Desk.
