A legal partner has developed a new contractual clause for international business disputes. Hilton Mervis of McDermott Will & Schulte designed the provision to streamline the enforcement of unpaid court judgments across borders.
The mechanism allows a creditor to initiate arbitration under the New York Convention if a monetary judgment goes unpaid. An arbitrator can then issue an award for the owed sum plus interest, without reexamining the original case. The clause also includes a security feature, permitting the arbitrator to demand payment of the judgment amount into a controlled account within fourteen days.
Several general counsels from major corporations have endorsed the concept, noting its potential to provide faster, more reliable enforcement in foreign jurisdictions. The clause aims to address inconsistencies and delays inherent in directly enforcing court judgments internationally. This development coincides with broader judicial efforts, like the Standing International Forum of Commercial Courts, to improve cross-border legal cooperation.
The mechanism allows a creditor to initiate arbitration under the New York Convention if a monetary judgment goes unpaid. An arbitrator can then issue an award for the owed sum plus interest, without reexamining the original case. The clause also includes a security feature, permitting the arbitrator to demand payment of the judgment amount into a controlled account within fourteen days.
Several general counsels from major corporations have endorsed the concept, noting its potential to provide faster, more reliable enforcement in foreign jurisdictions. The clause aims to address inconsistencies and delays inherent in directly enforcing court judgments internationally. This development coincides with broader judicial efforts, like the Standing International Forum of Commercial Courts, to improve cross-border legal cooperation.
