TAIWAN Law and Practice Contributed by: Peng-Kwang Chen, I-Ming Chen, Pamela Huang and Claudia Huang, Formosa Transnational Attorneys At Law
• the arbitration agreement is nullified, invalid or has yet to come into effect; • the arbitral tribunal fails to provide a party with an opportunity to present its case or a party is not lawfully represented during the arbitral proceed- ings; or • an arbitrator fails to disclose their conflict of inter- ests and is clearly prejudiced or has been request- ed to withdraw but continues to participate in the proceedings. 13.4 Procedure for Enforcing Domestic and Foreign Arbitration Procedure for Enforcing Domestic Arbitration Awards To enforce a domestic arbitration award, a party shall obtain an enforcement order rendered by the court beforehand. However, the arbitration award may be enforced without such enforcement order, provided that the parties agree in writing and the subject matter of the arbitration award concerns any of the following: • payment of a specified sum of money or certain amount of fungible goods or securities; or • delivery of a specified movable property. The enforcement of domestic arbitration awards shall be refused if the court finds that: • the arbitration award concerns a dispute not rel- evant to the subject matter of the arbitration agree- ment or exceeds the agreement’s scope, unless the offending portion can be severed from and not affect the remainder of the arbitration award; • the grounds for the arbitration award are not pro- vided despite being required by law, unless such absence of grounds was corrected by the arbitral tribunal; or • the arbitration award requests a party to act con- trary to the law. Procedure for Enforcing Foreign Arbitration Awards To enforce a foreign arbitration award, a party must obtain a recognition decision rendered by a Taiwan court first.
An application for recognition of a foreign arbitration award shall be dismissed, if: • such award is contrary to public order and good morals in Taiwan or concerns a dispute that cannot be solved through an arbitration approach under the laws of Taiwan (ie, lack of arbitrability); or • if the country where the arbitration award was made or whose laws govern the arbitral award does not recognise arbitral awards from Taiwan. 14. Outlook 14.1 Proposals for Dispute Resolution Reform Proposals for dispute resolution reform in Taiwan in recent years include the following. Establishing a Pyramid Litigation System To find truth in a timely manner and appropriately allo- cate judicial resources, the Judicial Yuan has already established several committees to research and pro- pose dispute resolution reforms. It is anticipated that the Code of Civil Procedure and Administrative Litiga- tion Act will be amended, and measures supporting the first-instance trial, which is at the bottom of the “lit- igation pyramid”, will be strengthened. Through these efforts, the aim is to reduce unnecessary appeals and thereby establish a pyramid litigation system. Proposed amendments include: • in addition to the existing court-appointed expert system, other types of experts such as profes- sional advisers will be introduced into civil litiga- tion to enhance the correctness of judgments. The Legislative Yuan completed its initial review of the relevant provisions in 2021; and • several provisions were introduced to the Adminis- trative Litigation Act and came into effect in August 2023. For example, a mediation mechanism has been established to reduce litigation at the source. Furthermore, the range of mandatory representa- tion has been extended to protect the litigation rights of the parties. In cases such as environmen- tal and land dispute cases, parties are required to be represented by a lawyer.
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