Sovereign Immunity and Enforcement of Arbitral Awards: Navigating International Boundaries
21 February 2012
Mayer Brown White Paper
For commercial parties that contract with States and State-controlled entities and then seek to arbitrate disputes or execute on judgments, an increasingly common problem is the attempt by these State parties to raise the defense of sovereign immunity to challenge the jurisdiction of the arbitral tribunal and/or to avoid enforcement of an arbitral award. The difficulties in handling disputes with these sovereign entities are a major concern, especially with the growing prospect of sovereign defaults leading to cross-border disputes.