TAIWAN Law and Practice Contributed by: Yafen Lin, Peng-Kwang Chen, I-Ming Chen and Weiyu Chiang, Formosa Transnational
Arbitral Awards From China As described in 4.1 Legal Issues Concerning Enforce- ment of Arbitral Awards , the court shall dismiss a petition for confirmation/recognition of an arbitral award from China if such award is contrary to public order and good morals in Taiwan or there is a lack of reciprocity. Arbitral Awards From Other Jurisdictions Pursuant to Article 50 of the Taiwan Arbitration Law, if a party applies to the court for recognition of a foreign arbitral award, the respondent may request the court to dismiss the application within 20 days from the date of receipt of the notice of the application, on any of the following grounds: • the arbitration agreement is invalid as a result of the incapacity of a party pursuant to the law cho - sen by the parties to govern the arbitration agree - ment; • the arbitration agreement is null and void pursu - ant to the chosen governing law of such arbitration agreement, or, in the absence of a choice of law, pursuant to the law of the country where the arbi - tral award was made; • a party is not properly served with the notice of the appointment of an arbitrator or any other matter in the arbitral proceedings that shall be served, or there is any other factor that gives rise to lack of due process; • the arbitral award involves a dispute irrelevant to the subject matter of the arbitration agreement, or falls beyond the scope of the arbitration agree - ment, unless the offending portion can be severed from and not affect the remainder of the arbitral award; • the composition of the arbitral tribunal or the arbitration proceedings contravenes the arbitration agreement between the parties, or, in the absence of an arbitration agreement, contravenes the law where the arbitration is seated; or • the arbitral award is not yet binding between the parties or has been suspended or revoked by a competent authority. 4.4 Process of Enforcing Arbitral Awards In principle, the holder of a domestic award must obtain an enforcement order to initiate the compul -
merely authorises the court to reject recognition at its sole discretion after contemplating the reciprocity factors. Further, Taiwan has been committed to aligning its arbitral laws and practices with important internation - al treaties such as the New York Convention. Such efforts can be found in the Taiwan-Vietnam Mutual Legal Assistance Agreement, where it is prescribed that “one party shall recognise and enforce arbitral awards rendered in the territory of the other party in accordance with the Convention on the Recognition and Enforcement of Foreign Arbitral Awards conclud - ed in New York on 10 June 1958 and the arbitration laws of the two parties.” As such, despite Taiwan not being a contracting party to the New York Convention, it may be observed that in general the Convention is de facto applied in recognition and enforcement pro - cedures and practices in Taiwan. 4.2 Variations in Approach to Enforcement of Arbitral Awards There is no variation in approach to enforcement of arbitral awards in Taiwan. 4.3 Categories of Arbitral Awards Not Enforced Domestic Arbitral Awards Pursuant to Article 38 of the Taiwan Arbitration Law, the enforcement of domestic arbitral awards shall be refused if the court finds that one of the following cir - cumstances applies: • the arbitral award involves a dispute irrelevant to the subject matter of the arbitration agreement, or falls beyond the scope of the arbitration agreement (ie, matters outside the submission to arbitration), unless the offending portion can be severed from and not affect the remainder of the arbitral award; • the arbitral award does not set forth the reasoning for the award where the reasoning is required by law, unless such omission is supplemented/cor - rected by the arbitral tribunal; or • the arbitral award orders a party to act contrary to Taiwanese law.
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