Following the successful outcome of arbitration proceedings in the UK, claimants may seek to enforce the award as a judgment in order to benefit from the broader range of enforcement remedies available through the courts. Doing so can strengthen their position in recovery proceedings and provide greater certainty when seeking to enforce their entitlement.
Benefits
Although an arbitral award already carries legal weight, winning parties have no direct access to the court’s enforcement mechanisms with the award alone. By converting an award into a judgment, it diversifies the winning party’s avenues of enforcement and recovery.
Common enforcement methods include writ of warrant or control over assets, third party debt orders, charging orders, and attachment of earnings orders. Depending on the circumstances of the case and the relationship between the parties, having access to these orders can greatly enhance a claimant’s ability to recover costs and indemnities arising from the arbitration award.
Procedure
Firstly, an arbitration claim form must be filed setting out the application for permission to enforce the award as if it were a judgment. Under Civil Procedure Rules (CPR) 62.18 (6a), the following documents and information should also be attached to the claim:
- Two copies of the draft court order granting permission to enforce the award
- A witness statement/affidavit verifying the award and providing evidence regarding the extent to which the award has not been complied
- The original arbitration agreement (or a certified copy)
- The original arbitration award (or a certified copy)
An application may be made ex parte without notifying the other party in advance. Nevertheless, the court has the discretion to direct that notice of the application be provided to the other party, depending on the circumstances of the case. The applicant will then need to serve the respondent personally or send a copy to their last known residential or business address, who must then acknowledge service. Under Section I, Part 62 of the CPR, the enforcement proceedings will continue as if they were an arbitration claim.
Once the order has been granted, it must be served on the defendant. The defendant will then have a limited period in which to apply for the order to be set aside. For domestic proceedings, this is generally 14 days from the date of service, although the court may determine a different timeframe where the defendant is located overseas. The arbitration award must not be enforced until this period has expired or any application to set aside the order has been resolved.
If you need advice or assistance, please contact Nath Solicitors on 0203 983 8278 or get in touch with the firm online.