Lisbon Court of Appeal | Recognition of Foreign Arbitral Awards | Public Policy | Contract Obtained by Corruption | Case #99
Case nr. 1667/18.9YRLSB-B.L1-2
25-03-2019 and 10-10-2019
The stay of a recognition procedure should be granted without the payment of a security when the factual background of the case indicates that there is a high likelihood that the award will be annulled or that the recognition should not be granted to the arbitral award which gives effect to a contract obtained by corruption.
I – The suspension of a procedure for the recognition of a foreign arbitral award, that is waiting for a decision on a lawsuit that was brought to annul that award, is not subject to a security deposit (“cautio”) when the annulment of said arbitral award is probable. II – This is more so when it is also likely that, even if the annulment does not occur, such arbitral award will not be recognised because there is a high likelihood that the objection of violation of the International Public Policy of the Portuguese State will prevail as there are sufficient factual background indicating that the contract which the applicant is seeking to enforce was obtained as a result of the commitment of corruption.