On June 9, we commemorated the 65th Anniversary of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (NYC), a pivotal milestone in the realm of international arbitration. To honor this occasion, a conference supported by the USAID Rule of Law Program was organized.

The forum, arranged by the Georgian Association of Arbitrators (GAA) in collaboration with the United Nations International Trade Commission (UNCITRAL), brought together 52 participants, including judges, arbitration experts, and partners from leading law firms. The participants exchanged ideas, experiences, and insights concerning critical aspects pertaining to the Convention's application and interpretation. The participants also engaged in comprehensive discussions on the most recent legislative initiatives taking shape across the globe and within Georgia. These initiatives aim to fortify and expand the utilization of arbitration, reflecting a shared dedication to advancing the field.

“Disputes are an inevitable part of commercial dealings. For commerce to flow and investments to grow, Georgia needs to have in place a safe environment fostering efficient and credible resolution of disputes. Arbitration can be a mechanism through which businesses can tailor the dispute resolution process to their needs. The Convention's operation, however, depends on the readiness of judges to apply it with its ‘pro-enforcement spirit’.” – said Rusudan Tabatadze, USAID Rule of Law Project Management Specialist, at the Democracy and Governance Office of USAID/Caucasus.

Jae Sung Lee, Senior Legal Officer at the UNCITRAL Secretariat, said: “The New York Convention is the backbone of the international legal framework for arbitration. UNCITRAL plays a key role in developing that framework in pursuit of its mandate to further the harmonization and modernization of the law of international trade. Its secretariat functions as a guardian of the NYC. This conference is a good venue for a timely discussion on the NYC and its application in Georgia. We look forward to getting cases from Georgia to include them in the Case Law on UNCITRAL Texts database.”

New Vision University (NVU) students, with the supervision of Sopho Tkemaladze, Assistant Professor at NVU, presented a compilation of Georgian Supreme Court decisions between 2016-2022 related to the recognition and enforcement of foreign arbitral awards. According to the presentation, most foreign arbitral awards were enforced by the Supreme Court.

"The enforcement of international arbitral awards in Georgia under the NYC is a key guarantor for international arbitration in Georgia. The ability to enforce arbitral awards and arbitration agreements in accordance with best international practices is essential for the promotion of arbitration in business sectors.” - said Jaba Gvelebiani, GAA Chairman.

Two panel discussions were held at the conference, providing Georgian and international experts with valuable insights into the NYC and its application both in Georgia and internationally. The panels focused on the practices within Georgia, legislative changes, modern trends, as well as the experiences of Germany and England.

The first panel of Georgian representatives consisted of esteemed individuals in the field, including Nick Gvinadze, Managing Partner at Gvinadze & Partners LLC; Judge Nino Bakakuri from the Supreme Court of Georgia; Giga Batlidze, Partner at BLC Law Office; and was moderated by Rusa Chkuaseli, Deputy Chair of the GAA. The panelists shed light on the court practice of applying the NYC in Georgia. Judge Bakakuri emphasized that the Supreme Court effectively handles timelines for recognition and enforcement of arbitral awards, and highlighted the importance of effective cooperation between parties to ensure expedited procedures.

The second panel, titled "Arbitration-friendly framework,” explored proposed amendments to Georgia’s Law on Arbitration put forward by the GAA, as well as reform initiatives from the UK and Germany. The panel was comprised of Giorgi Kekenadze, member of the GAA Working Group on Legislative Amendments and Senior Associate at Nodia, Urumashvili & Partners in Georgia; Shantanu Majumdar KC, barrister at Radcliffe Chambers and arbitrator and mediator from the UK; and Dr. Reinmar Wolff, Assistant Professor at the University of Marburg and Vice President of the German Arbitration Institute from Germany. The panel was moderated by Sopho Tkemaladze, Assistant Professor at New Vision University.

The German and UK representatives discussed recent planned reforms in their respective countries concerning national arbitration laws. Dr. Wolff highlighted a key proposed amendment that allows the use of the English language in German courts when the foreign award is in English. This eliminates the requirement for the award to be translated into German for consideration by German courts. Additionally, the reform removes the mandatory use of specific forms for business-to-business arbitration agreements. The UK representative provided insights into the UK's approach, highlighting the anti-discrimination stance. According to the approach, arbitration agreements that include the appointment of arbitrators with any discriminatory elements may be considered void.

Giorgi Kekenadze summarized the recent draft amendments to the Law on Arbitration in Georgia. He highlighted several important changes, including the possibility for foreign parties to waive the right to challenge an arbitral award in court and the ability to appeal the Appellate Court's refusal to recognize and enforce a local arbitral award in the Supreme Court. These amendments aim to further enhance the arbitration framework in Georgia.Bottom of Form

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The Convention on the Recognition and Enforcement of Foreign Arbitral Awards, commonly known as the New York Convention (NYC), was adopted by a United Nations diplomatic conference on June 10, 1958 and entered into force on June 7, 1959. Currently, the NYC has 172 state parties.  Georgia adopted new UNCITRAL Model Law based Arbitration Law in 2009. Georgia adhered to NYC on June 2, 1994. The NYC has been applied by the Supreme Court of Georgia responsible for recognition and enforcement of foreign arbitral awards.