PORTUGAL Law and Practice Contributed by: João Saúde, Miguel Santos Almeida, Alexandra Valpaços and Eduarda Peixoto, Sérvulo & Associados
11.3 Standard of Judicial Review In set-aside proceedings, Portuguese courts do not review the merits of the dispute. Judicial review is lim - ited to the statutory grounds for annulment and does not involve a reassessment of the facts or substantive law. If the arbitral award is subject to appeal, Portu - guese courts may review the merits de novo.
At the enforcement stage, courts will examine immu - nity from execution asset by asset, usually protect - ing sovereign and public purpose property (acta jure imperii) while being more open to enforcement against commercial assets (acta jure gestionis). A state or state entity may therefore raise sovereign immunity defences, but their success will depend on the nature of the dispute and the assets targeted. 12.3 Approach of the Courts Refusal to recognise or enforce a foreign arbitral award is permitted only on limited grounds. At the request of the party against whom the award is invoked, recognition or enforcement may be refused where that party proves that: • the arbitration agreement was invalid; • a party lacked capacity, was not given proper notice of the arbitration or was otherwise unable to present its case; • the award exceeded the scope of the arbitration agreement; • the composition of the tribunal or the arbitral pro - cedure did not comply with the parties’ agreement or the applicable law of the seat; or • the award has not become binding or has been set aside or suspended by a competent court. Recognition may further be refused if the court finds that: • the subject matter of the dispute is not capable of settlement by arbitration under Portuguese law; or • the recognition or enforcement of the award would lead to a result clearly incompatible with the inter - national public policy of the Portuguese state. 13. Miscellaneous 13.1 Class Action or Group Arbitration Portuguese arbitration law does not expressly provide for class action arbitration or opt-out group arbitration mechanisms.
12. Enforcement of an Award 12.1 New York Convention
Portugal is a contracting state to the New York Con - vention on the Recognition of and Enforcement of Foreign Arbitral Awards (the New York Convention). Under Article I of the New York Convention, Portugal declared on the basis of reciprocity that it will apply the Convention to the recognition and enforcement of awards made only in the territory of another contract - ing state. 12.2 Enforcement Procedure A domestic arbitral award rendered in Portugal is enforceable in the same manner as a state court judgment, without the need for prior recognition, and enforcement is sought before the competent first instance court. Foreign arbitral awards are recognised and enforced primarily under the New York Conven - tion. Portuguese courts will not enforce a domestic award that has been set aside in Portugal. For foreign awards annulled at the seat, enforcement is governed by the New York Convention as incorporated in the Volun - tary Arbitration Law; set aside at the seat is a strong reason to refuse recognition but not an automatic bar in the statutory text, and the court will also consider international public policy. When an award is subject to ongoing set-aside pro - ceedings at the seat, Portuguese courts apply the New York Convention framework. There is no auto - matic rule in domestic law that such proceedings have “no impact”; courts will typically consider whether to stay or adjourn recognition/enforcement in Portugal pending the outcome at the seat, particularly where annulment appears credible or public policy concerns are raised.
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