LUXEMBOURG Law and Practice Contributed by: Elisabeth Omes, Stephen De Ron and Lorenzo Cappelli, Elvinger Hoss Prussen
4. Arbitral Awards 4.1 Legal Issues Concerning Enforcement of Arbitral Awards Luxembourg has become an increasingly attractive jurisdiction for arbitration following the reform of its arbitration law, which entered into force on 25 April 2023. The new provisions, incorporated into Articles 1224-1249 of the NCPC are inspired by the UNCI - TRAL Model Law and modern French arbitration law. Luxembourg is also a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). The New York Convention, however, provides that the law of the state where the recognition or enforcement of an arbitral award is sought must apply if it is more favourable to recognition and enforcement than the New York Convention. This is the case under Luxem - bourg law in certain respects, particularly with regard to annulled arbitral awards. Arbitral awards are generally binding on the parties once they have been rendered. However, compul - sory enforcement requires the award to be declared enforceable through an exequatur procedure. Luxem - bourg courts adopt a pro-arbitration approach, and limit their review to specific procedural and public policy concerns. Unlike an appellate court, the dis - pute or the correctness of the arbitrator’s reasoning is not reconsidered. 4.2 Variations in Approach to Enforcement of Arbitral Awards The parties’ agreement to submit a dispute to arbitra - tion is formalised in an arbitration agreement, which may be concluded even after court proceedings have been commenced. An arbitral award has the same force as a court judg - ment, and is immediately binding on the parties. Except for in sole arbitrator cases, it must be rendered and signed at least by a majority of the arbitrators. Unless otherwise agreed by the parties, the award must be reasoned – ie, it must state the reasons upon which it is based.
Following the court’s decision on protective meas - ures, security or suspension, a challenge to enforce - ment does not automatically prevent the enforcement from proceeding. However, the debtor may apply to the court for interim protective measures pending the determination of the challenge. The right to appeal an enforcement decision is gov - erned by Articles 49 and 50 of the Brussels I bis Regu - lation. Since this regulation abolished the requirement for an exequatur, the initial enforcement of a judgment is not itself subject to appeal. Instead, either party may appeal a decision granting or refusing an application for refusal of enforcement. Under Article 685-4 of the NCPC applications for refusal of enforcement, applications for a declaration that there are no grounds for refusing recognition, applications for a refusal of recognition, and applica - tions for a stay of enforcement of a foreign judgment are brought before the president of the District Court sitting in summary proceedings. Appeals against the president’s decision are brought to the Court of Appeal, also sitting in summary proceedings. The appeal must be brought in accordance with the pro - cedural rules and time limits applicable to summary proceedings. A decision of the Court of Appeal may, in turn, be appealed before the Supreme Court ( Cour de cassation ) in accordance with the procedures and time limits applicable to ordinary civil proceedings. Under the simplified exequatur regime (eg, judg - ments enforced under the 2007 Lugano Convention or the 2019 Hague Judgments Convention), the party against whom enforcement is sought may appeal the ex parte decision before the Court of Appeal within one month of service of the decision, or within two months if the appealing party is domiciled abroad. The decision of the Court of Appeal may then be appealed before the Supreme Court pursuant to Article 682 of the NCPC. Under the general domestic regime, a judgment grant - ing recognition or enforcement of a foreign judgment may be appealed before the Court of Appeal and, sub - sequently, before the Supreme Court.
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