DENMARK Law and Practice Contributed by: Johannes Hedegaard and Tobias Bøgh, Bruun & Hjejle
• the court of choice agreement was null and void under the law of the state of the chosen court, unless the chosen court has determined that the agreement is valid; • a party lacked the capacity to conclude the agree - ment under the laws of Denmark; • the document which instituted the proceedings, or an equivalent document including the essential elements of the claim: i) was not notified to the defendant in sufficient time and in such a way as to enable them to arrange for their defence, unless the defendant appeared and presented their case without contesting notification in the court of origin, provided that the law of the state of origin permit - ted notification to be contested; or ii) was notified to the defendant in Denmark in a manner that is incompatible with the fundamental principles of the laws of Denmark concerning service of documents; • the judgment was obtained by fraud in connection with a matter of procedure; • recognition or enforcement would be manifestly incompatible with the public policy of Denmark (ordre public), including situations where the specific proceedings leading to the judgment were incompatible with fundamental principles of proce - dural fairness recognised in Denmark; • the judgment is inconsistent with a judgment given in Denmark in a dispute between the same parties; or • the judgment is inconsistent with an earlier judg - ment given in another state between the same parties on the same cause of action, provided that the earlier judgment fulfils the conditions necessary for its recognition in Denmark. Enforcement may also be refused if, and to the extent that, the judgment awards damages, including exem - plary or punitive damages, that do not compensate a party for actual loss or harm suffered. 4. Arbitral Awards 4.1 Legal Issues Concerning Enforcement of Arbitral Awards In general, Denmark has a favourable stance towards the enforcement of arbitral awards.
Denmark is a party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) and has largely replicated the model law of the United Nations Com - mission on International Trade Law (UNCITRAL) in the Danish Arbitration Act. In accordance with Section 38 of the Danish Arbi - tration Act, an arbitral award made in Denmark or in another country is binding in Denmark and can be enforced in accordance with the provisions set out in the Danish Administration of Justice Act. This is irrespective of whether Denmark is obliged to do so under treaty law, including if the award is rendered in a state that has not acceded to the New York Con - vention, and regardless of whether the arbitral award concerns commercial matters or not. In this regard, the Danish Arbitration Act is more expansive than the New York Convention and the UNCITRAL model law. However, in this regard, the distinction between arbi - tral awards and other types of decisions or state - ments issued by an arbitral tribunal should be noted, as only the former are enforceable. For example, in a case from 2012 (published in the Danish Weekly Law Reports (UfR 2012.3156/1 Ø)), the Eastern High Court ruled that a decision on costs, which was not made by an arbitral award but by a decision notified to the parties by letter, was not enforceable. An arbitral award is characterised by the fact that it ends the parties’ dispute on a particular issue before the arbitral tribunal, and it must fulfill the minimum requirements set out in Section 31 of the Danish Arbi - tration Act as to form and substance to be enforce - able. These requirements include that the award be concluded in writing and signed by all arbitrators, or, alternatively, by a majority of arbitrators, accompa - nied by a statement outlining the reasons why not all arbitrators have signed. Additionally, the award must be dated and specify the location of the arbitration. Finally, the reasons must be provided with the award, unless the parties have agreed otherwise or the award is on agreed terms.
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