Arbitral Award vs. International Arbitral Award

Attribute	Arbitral Award	International Arbitral Award
Definition	An award issued by an arbitrator or arbitral tribunal in a domestic arbitration proceeding.	An award issued by an arbitrator or arbitral tribunal in an international arbitration proceeding.
Enforceability	Enforceable within the jurisdiction where the arbitration took place.	Enforceable across multiple jurisdictions under the New York Convention or other international treaties.
Applicable Law	Subject to the laws of the country where the arbitration took place.	May be subject to international conventions, treaties, or the laws chosen by the parties.
Recognition	May require recognition by a court in the jurisdiction where the arbitration took place.	Generally recognized and enforceable in multiple countries without the need for further recognition.

Introduction

Arbitration is a widely used method for resolving disputes outside of traditional court systems. One of the key outcomes of arbitration is the arbitral award, which is a decision made by the arbitrator or arbitral tribunal. In international arbitration, the arbitral award may be referred to as an international arbitral award. While both types of awards serve the same purpose of resolving disputes, there are some key differences between them.

Definition of Arbitral Award

An arbitral award is a final and binding decision made by an arbitrator or arbitral tribunal in a dispute. It is the outcome of the arbitration process and is intended to resolve the issues in contention between the parties involved. The arbitral award is enforceable in court and carries the same weight as a court judgment. It is considered a legally binding document that must be adhered to by the parties.

Definition of International Arbitral Award

An international arbitral award is similar to a domestic arbitral award, but it involves parties from different countries or where the dispute has an international element. International arbitral awards are governed by international arbitration laws and conventions, such as the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. These awards are recognized and enforceable in multiple countries, making them particularly valuable in cross-border disputes.

Enforceability

One of the key differences between an arbitral award and an international arbitral award is the enforceability of the award. While both types of awards are legally binding, an international arbitral award may have broader enforceability due to the international conventions and treaties that govern it. For example, the New York Convention allows for the recognition and enforcement of international arbitral awards in over 160 countries, making them easier to enforce globally.

Applicable Law

Another difference between an arbitral award and an international arbitral award is the applicable law that governs the arbitration process. In a domestic arbitration, the parties may agree on the governing law to be applied in the arbitration agreement. However, in international arbitration, the applicable law may be more complex due to the involvement of parties from different legal systems. International arbitral awards may be subject to the laws of multiple jurisdictions, adding an additional layer of complexity to the enforcement process.

Recognition and Enforcement

Recognition and enforcement of arbitral awards are crucial for ensuring that the parties comply with the decision of the arbitrator. In domestic arbitration, the enforcement process is typically straightforward, as the award is enforceable in the country where it was issued. However, in international arbitration, the recognition and enforcement of the award may require the cooperation of multiple countries. International arbitral awards benefit from the New York Convention, which streamlines the process of enforcing awards across borders.

Finality

Both arbitral awards and international arbitral awards are intended to provide a final and binding resolution to disputes. Once an award is issued, the parties are expected to comply with the decision and bring the matter to a close. The finality of the award is a key aspect of arbitration, as it allows the parties to move on from the dispute and focus on other matters. The finality of the award also contributes to the efficiency of arbitration as a dispute resolution mechanism.

Costs and Time

Arbitration is often chosen as a dispute resolution method due to its efficiency and cost-effectiveness compared to traditional litigation. Both arbitral awards and international arbitral awards can be obtained more quickly and at a lower cost than court judgments. However, international arbitration may involve additional costs related to the complexity of cross-border disputes and the need for legal representation in multiple jurisdictions. The time it takes to obtain an international arbitral award may also be longer due to the involvement of parties from different countries.

Conclusion

In conclusion, while both arbitral awards and international arbitral awards serve the same purpose of resolving disputes outside of traditional court systems, there are some key differences between them. International arbitral awards have broader enforceability and may be subject to the laws of multiple jurisdictions, making them more complex to obtain and enforce. However, the recognition and enforcement mechanisms provided by international conventions such as the New York Convention make international arbitral awards a valuable tool for resolving cross-border disputes.