New York Court Grants Pre-award Attachment in Aid of Singapore Arbitration

17 Mar 2011

A New York appellate Court has granted a pre-emptive attachment of assets in aid of an international arbitration in Singapore involving foreign parties, even though there was no connection to New York by way of personal jurisdiction or subject matter of the dispute.

It was noted by the Judge in this case that it was only fairly recently that the courts in New York were given the authority to issue injunctions and attachments in aid of arbitrations outside the United States and involving foreign parties. Such jurisdiction reinforces the notion that courts should be prepared to act in aid of an international arbitration and thus respect the parties’ chosen forum for dispute resolution.

This case is also significant as it illustrates that any party with assets in New York could, in an appropriate case, have its assets attached as security for an on-going international arbitration. Conversely, claimants will also look to see whether respondents have assets in New York which can be attached, thus enhancing the practical value of any arbitration.

While the power of the courts to grant pre-emptive orders varies among jurisdictions, the decision in this case is certainly a step in the right direction and should be welcomed by the international arbitration community.

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