Enforceability of an Arbitral Award Despite Lack of Arbitration Agreement and Inadequate Reasoning

Facts

By a decision titled "Arbitration" dated 31 December 1998, an arbitrator ordered the appellant to pay the "German family" USD 425,000 and GBP 15,000. The appellant filed an application with the Higher Regional Court of Düsseldorf to set aside the arbitral award, which was however rejected. Upon the application of the "German family", the High Court of the Canton of Zurich certified the enforceability of the arbitral award on 28 November 2001. The appellant then filed a constitutional appeal against the decision of the High Court granting the definitive enforcement.

Considerations

The Federal Supreme Court dismisses the constitutional appeal. It states that the creditor must generally only present the arbitral award pursuant to Art. 189 of the PILA and, if applicable, a certificate of enforceability pursuant to Art. 193(2) of the PILA to the judge deciding on the enforcement. Further objections, such as the lack of an arbitration agreement or the inadequate reasoning of the arbitral award, can no longer be raised in the enforcement proceedings. These objections should have been raised in the proceedings for challenging the arbitral award pursuant to Art.…