MAURITIUS Trends and Developments Contributed by: Steven Sarangavany Sengayen, Steven and Associates Law Firm
The fact Eric Georges Lucien Laporte (EGL) obtained an arbi - tral award seated in London against his sibling Marc Albert René Laporte (MAR) for breach of a sharehold - ers’ agreement. The award included an award of third- party litigation funding costs. EGL sought recognition and enforcement of the entire award in Mauritius, including the funding costs. MAR resisted the appli - cation, challenging the validity of the funding-costs award and invoking public policy against the enforce - ment of such an award. The two issues, therefore, which the Court was called upon to determine were as follows: • With respect to Third-Party Funding Costs, Whether an award of litigation funding costs falls with - in “other costs” under the arbitration agreement and is thus enforceable. • With respect to the Public Policy Exception, Whether enforcement would offend Mauritian public policy, given that third-party funding is not expressly regulated under Mauritian law. Held On the issue of third-party funding, the arbitrator had applied the parties’ express agreement and English law governing costs. As such, he had validly exercised his discretion to award funding costs. On this aspect, the decision applied the doctrine of separability of the costs-award provision, aligning the jurisprudence with emerging international practice which recognises funding costs as recoverable under the item “other costs”. On the issue of public policy, public policy considera - tions are narrowly construed and limited to breach of fundamental public order (eg, fraud, corruption). As such, the fact that third-party funding lacks specific local regulation does not constitute a public policy bar to enforcement. Author’s comment This decision underscores Mauritius’s alignment with global trends to regard arbitration awards as supra -
International Arbitration in Mauritius: Evolving Landscape The landscape of international arbitration in Mauritius continues its robust expansion in 2025, building on the momentum witnessed under the Mauritian Inter - national Arbitration Act 2008 (IAA). Not only has there been a further rise in arbitration filings before the court in Mauritius, but the division of the Supreme Court dedicated to arbitration has also delivered a number of ground-breaking judgments clarifying novel issues such as third-party funding and the scope of the pub - lic policy exception. These decisions have enhanced transparency and predictability, reinforcing Mauritius’s reputation as an arbitration-friendly forum. Moreover, the Mauritius International Arbitration Centre (MIAC) has seen increased usage of its expedited rules and digital-hearing protocols, reflecting a broader global shift towards efficiency and flexibility in international dispute resolution. Evidencing a global trend towards arbitration, the Mauritian judiciary’s consistent pro-enforcement stance aligns with internationally recognised princi - ples and underscores the jurisdiction’s commitment to upholding arbitration agreements. Recent Supreme Court decisions in 2024 and early 2025 have not only affirmed the autonomy of the arbitral process but also addressed emerging issues, notably the enforceabil - ity of third-party funding costs and the limited reach of public policy challenges. This positive trajectory enhances parties’ confidence in Mauritius as a neu - tral, cost-effective venue for resolving cross-border disputes. In sum, the sustained growth of arbitration under the IAA, coupled with the Supreme Court’s judicious and modern approach, cements Mauritius’s position as a leading hub for international dispute resolution. Detailed Judgment Summary of Laporte E.G.L v Laporte M.A.R (2025 SCJ 35) The law The law concerned in the application was Article V of the New York Convention, ie, domestic enforce - ment of an arbitral award via Section 3 of the Mauritian Convention on the Recognition and Enforcement of Foreign Arbitral Awards Act and Section 39 of the IAA.
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