The Extraterritorial Recognition And Enforcement Of Foreign Punitive Arbitral Awards

Punitive damages are awarded as an additional amount, over and above what isawarded for compensatory damages. The damages imposed to punish the defendant, toteach the defendant a lesson, or to deter others from engaging in the same kind of conduct.Punitive damages appeared in ancient laws, such as multiple damages in Roman Laws andMosaic Laws. In modern times, Britain adopted them first, and then the US developedthem perfect. Punitive damages initially appeared in court decisions, and with thedevelopment of international trade, arbitrators began to make punitive arbitral awards. Butthe power of the arbitrators has been questioned. Through the US courts’ constantexploration, the power of arbitrators is confirmed finally.There are some obstacles in extraterritorial recognizing and enforcing foreign punitivedamages, for example, arbitral clauses’ effectiveness, whether punitive damages violatearbitration rules, substantive laws or public policy. According to New York Convention andreciprocity, each country is open to foreign punitive damages and relaxes the restriction. Inthe last part, according to our reality, I focus on how we should to deal with foreignpunitive damages.By means of researching various countries legislation, judicial practice andinternational attitudes, the article is aimed at raising some viable suggestions to promotethe recognition and enforcement of foreign punitive arbitral awards.