International Commercial Arbitration: The Effect of Culture and Religion on Enforcement of Award

Abstract

Arbitration is one of the oldest legal systems of solving disputes, albeit, it was simple and without any power to enforce the outcome of the tribunal. In modern ages, arbitration has transformed to a more complicated and sophisticated system of solving international commercial disputes. In recent decades, enforcement of tribunal award benefited from various conventions like New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). However the enforcement still has few difficulties. One problem is related to the enforcement of the award in different countries. Based on Article V (2(b)) of New York Convention, countries can prohibit enforcement of award if it is against public policy of that country. This broad definition has created many problems especially in some Islamic countries in Middle East due to frequent use of this defense. Islamic countries in Middle East have tried to implement new arbitration legislations from western countries in order to acclimate themselves with modern International commercial and political relations. However facing biased actions from western countries toward their cultures, have made these adaptations more challenging. Considering the claim of both parties, one should not forget the strong influence of culture in International relations as it defines many actions and concerns of society. Ignoring this issue can create many problems and hostile atmosphere between nations that even affect International commercial arbitration enforcements. Knowing the significance of effect of culture, it is essential for many lawyers, scholars and practitioners to study and learn more about culture and norms of other countries. Multi-cultural countries like Canada and commercial hubs like Dubai can facilitate understanding different cultures by creating cultural and legal centers.