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The New York Convention for the Enforcement of Foreign Arbitral Awards

By James R. Cairns
July 30, 2012

Cross-border equipment lessors and their financiers often prefer binding arbitration clauses in their lease agreements on the assumption that, under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, an arbitral award granted, for example, in the United States would be simple and quick to enforce in the foreign jurisdiction of the lessee. This, however, is not necessarily the case and, in some instances, a foreign arbitral award may be more difficult or time consuming to enforce than simply commencing a lawsuit in the lessee's home jurisdiction.

The New York Convention

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