A winning formula on sea and land

Derek Luxford, of Hicksons, looks at Australia’s proactive commercial arbitration enforcement regime

In recent years the Australian courts have developed an enviable reputation for adopting a very proactive approach to the enforcement of both Australian and foreign arbitral awards. In particular, the Australian courts have adopted a vigorous approach in seeing off various challenges, many of them unmeritorious, trying to set aside arbitration awards on relatively spurious grounds such as alleged infringing public policy or procedural unfairness. In the process the Australian courts have made it clear that Australian governments regard arbitration as a beneficial form of prompt and efficient commercial dispute resolution which is to be encouraged. So attempts to stymie arbitrations by unmeritorious challenges are unlikely to succeed in the Australian courts. Unsuccessful challengers to the enforcement of arbitral awards in Australia can expect to be ordered to pay the successful party’s legal costs.