THE IMPACT OF GLOBALIZATION ON THE CONCEPT OF PUBLIC POLICY AS AN EX-OFFICIO REASON FOR JUDICIAL CONTROL OF ARBITRAL AWARDS

Abstract

The subject of this paper is the effects of globalization on the concept of public policy as an ex officio reason for judicial control, whether applied to domestic or foreign arbitration awards.

First, the paper focuses on the historical development of the concept of public policy, illustrating its evolution through the lens of international documents that only indirectly regulate it, leaving it to individual states within their national legal systems to define what constitutes public policy. In this regard, the lack of a uniform definition of public policy is emphasized, often leading to inconsistent interpretations across different jurisdictions. This inconsistency directly impacts the process of judicial control over arbitration awards due to violations of public policy rules, regardless of whether they are domestic or foreign, as judges strive to balance national interests with international standards.

To overcome this situation, it is recommended that judges consider the definition of transnational public policy in their review process, which could provide a more cohesive understanding that transcends local legal paradigms.

The paper also analyzes the evidentiary standard that must be met to annul or refuse recognition of an award due to violations of public policy rules. Additionally, it critically examines the varied practices in the judicial review of arbitration awards due to violations of public policy, highlighting the need for a firm and consistent approach to ensure fairness and legal certainty in arbitration proceedings.

This paper advocates for a more harmonized framework that promotes the influence of globalization on public policy, emphasizing that by connecting national legal principles with transnational values, a more coherent understanding of public policy in the context of international arbitration can be achieved.