The Chilean Supreme Court has issued a significant ruling concerning the recognition and enforceability of foreign arbitration awards in Chile. To render a foreign arbitration award enforceable within Chilean jurisdiction, the Civil Procedural Code stipulates that the Supreme Court must ascertain that the award does not contravene Chilean laws, does not exceed Chilean jurisdiction, was properly served upon the party against whom it is invoked, that there are no pending appeals according to the laws of the originating country, and that it is valid and authenticated by a superior ordinary court in the originating country.
In addition to the Civil Procedural Code, Chile has ratified the New York Convention and enacted the International Commercial Arbitration Act. Both legislations govern the recognition and enforceability of foreign arbitration awards within the local jurisdiction in very similar ways. According to these laws and the recent Supreme Court ruling, a foreign arbitration award may not be recognized and enforced within the local jurisdiction if the Supreme Court determines that the dispute could not have been arbitrated or if recognition and enforcement would violate Chilean public policy.
In a recent case concerning the recognition and enforcement of a foreign arbitration award, the Supreme Court determined that the provisions of the New York Convention and the International Commercial Arbitration Act supersede those of the Civil Procedural Code. The Court also clarified that references to public policy in the New York Convention and the International Commercial Arbitration Act encompass the fundamental principles of the entire Chilean legal system, rather than specific laws as stated in the Civil Procedural Code. Furthermore, the Court ruled that certifications stating the absence of pending appeals against the arbitration award and authentications from superior ordinary courts in the originating country are not necessary, in accordance with the provisions of the New York Convention and the International Commercial Arbitration Act.
Thus, through its ruling, the Supreme Court confirms that special rules, governed by the New York Convention and the International Commercial Arbitration Act, must be adhered to in order to recognize and enforce a foreign arbitration award within the local jurisdiction. The Court's determination ensures not only a robust legal framework for international arbitration in Chile but also affirms its jurisprudence in this regard.
