Meaning
International standards governing the enforcement of arbitral awards across different nations must be coordinated with temporary protective remedies to remain effective. While the treaty itself focuses on final awards, New York Convention interim measures are orders designed to preserve the subject matter of the dispute while arbitration is ongoing. The applicability of these orders stops at the boundaries of sovereign court jurisdictions, which must individually determine whether to grant or enforce such temporary relief.
This creates a dual system where both courts and tribunals share the responsibility for preserving assets.
Judicial Support
Local courts provide the coercive power needed to back up the decisions of international tribunals. When a party requests New York Convention interim measures, they seek to freeze assets or maintain the status quo before the final award is issued. This support ensures that a victorious party is not left with an empty victory.
Enforcement Challenge
Enforcing temporary orders across borders is more complex than enforcing final arbitral decisions. Many national laws do not treat provisional measures as final awards eligible for direct enforcement under the convention. This distinction requires parties to seek separate interim orders in each country where assets are located.
Strategic Benefit
Securing provisional protection early prevents respondents from restructuring their businesses to avoid paying damages. It protects the integrity of the arbitral process by ensuring that assets remain available to satisfy any eventual award. This financial security makes the arbitration process more reliable for commercial investors.
