An arbitral award is only worth as much as the ability to enforce it. The New York Convention of 10 June 1958 on the Recognition and Enforcement of Foreign Arbitral Awards, given effect in Italy by Law no. 62 of 19 January 1968, is what makes international arbitration effective in more than 170 States.
The procedure in Italy
The procedure is governed by articles 839 and 840 of the Code of Civil Procedure and has two stages.
Ex parte stage. The interested party files an application with the President of the Court of Appeal for the district where the counterparty resides (or, if it is not resident in Italy, the Court of Appeal of Rome), producing the award and the arbitration agreement in original or certified copy, with a certified translation if they are in a foreign language. Without hearing the other side, the President checks only that the dispute is arbitrable under Italian law and that the award contains nothing contrary to public policy, and declares the award effective by decree.
Opposition stage. The decree can be opposed before the Court of Appeal within thirty days of its communication or service. This is where the losing party can raise the grounds for refusal set out in the Convention.
Grounds for refusal (article V)
The Convention lists exhaustive grounds, interpreted narrowly and in favour of recognition. At the request of the party against whom the award is invoked, who bears the burden of proof (art. V.1):
- incapacity of the parties or invalidity of the arbitration agreement under the applicable law;
- breach of due process: no proper notice of the appointment of the arbitrators or of the proceedings, or inability to present one’s case;
- an award going beyond the scope of the arbitration agreement;
- a tribunal or procedure not in accordance with the agreement or the law of the seat;
- an award not yet binding, or set aside or suspended in the State where it was made.
The court may instead raise of its own motion (art. V.2) the non-arbitrability of the dispute and a conflict with the public policy of the requested State. Italian case law reads the latter as international public policy, meaning the fundamental principles of the legal order, without any review of the merits.
Coordination tools
If an action to set the award aside is pending at the seat, the court may adjourn the decision on enforcement and, on application, order the other party to give suitable security (art. VI). Article VII also allows a party to rely on domestic or treaty rules more favourable to recognition.
Enforcement strategy
- Map the counterparty’s assets and the States where they are located during the arbitration itself.
- Consider interim measures to secure enforcement, in Italy and abroad.
- Keep the arbitral procedure formally sound (service, time limits, records) to prevent the grounds under art. V.1.
- Seek recognition in several States in parallel when assets are spread across jurisdictions.
This note is for information only and reflects the law at the date of publication; it is not legal advice.