Enforcement of Foreign Arbitral Awards in Austria

By Mario Kapp and Eva Pany, KAPP & PARTNER Rechtsanwälte GmbH

Arbitration is becoming increasingly important. It is the rule rather than the exception for international disputes. The reasons for this are obvious; in addition to the frequently mentioned advantage of greater flexibility compared to state court proceedings, the possibility of appointing specialised arbitrators, the shorter duration of the procedure, and, above all, the international enforceability of arbitration awards, are essential factors in why businessmen decide to conclude arbitration agreements. Both domestic and foreign arbitral awards are enforceable in Austria and are not complicated. Still, legal assistance is advisable to avoid potentially costly errors.

Recognition and enforceability of foreign arbitral awards are assessed on the provisions of the Austrian Enforcement Regulation – EO; if not, international law or legal acts of the European Union give another legal basis. In addition to the EO, the most relevant legal basis is the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (NYC).

In contrast to a domestic arbitral award, a foreign arbitral award in Austria cannot be challenged by means of an action for annulment. If only one of the reasons stipulated in Art V NYC is present, the court must refuse the recognition or rather the enforceability declaration (e.g., in case of a violation of the Austrian ordre public). The procedure for examining the enforceability of a foreign arbitral award in Austria is not part of the enforcement proceedings, but a detached judicial procedure sui generis.

There is also a particular right to appeal against the refusing of the recognition. It is admissible to combine the application for recognition with the application for enforcement. You have to pay the same court fees as for “normal” executions; for the enforcement of a claim of, for example, EUR 200,000, the court charges fees of around EUR 2,500, which is similar to the amount of the costs for the application by the Austrian Law on Legal Tariffs.

Mario Kapp

GGI member firm
KAPP & PARTNER Rechtsanwälte GmbH
Law Firm Services
Graz-Seiersberg, Austria
T: +43 316 22 59 55
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: www.kapp.at

KAPP & PARTNER Rechtsanwälte GmbH has four partners and five associates and an outstanding reputation for bankruptcy and real estate law in Austria. The firm mainly focuses on bankruptcy law, reorganisation law, company restructuring, commercial law, banking law, real estate law, and international law. For further information, visit the homepage at www.kapp.at.

Mario Kapp was the sole founder of the law firm in 2006. He is also the Managing Partner and specialises in bankruptcy law, corporate law, and business restructuring.

Eva Pany

GGI member firm
KAPP & PARTNER Rechtsanwälte GmbH
Law Firm Services
Graz-Seiersberg, Austria
T: +43 316 22 59 55
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: www.kapp.at

Eva Pany qualified as a lawyer in 2001. She specialises in litigation, and has been a partner of KAPP & PARTNER Rechtsanwälte GmbH since 2015.

Published: Debt Collection, Restructuring & Insolvency Newsletter, No. 12, Spring 2020 l Photo: xbrchx - stock.adobe.com