Arbitral Awards in Japan

We’ve already covered the main aspects of arbitration regulation in Japan. In this piece, we’ll be looking into the enforcement & challenging of arbitral awards in this jurisdiction.

Correction & Interpretation

If you intend to settle a dispute in Japan via arbitration, please note that arbitral tribunals there may, on their own initiative or at the request of parties, make amendments to arbitral decisions. Also, Japanese courts can provide their own interpretation of verdicts at the request of parties. Such requests must be made within 30 days upon receipt of notification of the decision.

Filing an Appeal in Japan

If awards are delivered in Japan, parties may challenge them as per Japan’s arbitration legislation.

Grounds for challenging arbitral awards in Japan include:

• invalid arbitration agreements;
• parties weren't informed of the appointment of arbitrators;
• parties weren’t able to deliver their case during arbitral proceedings in Japan;
• awards fall outside the scope of arbitration agreements or arbitral claims;
• tribunal’s composition contradicted parties’ agreement;
• the court’s decision is based on a dispute that cannot be the subject of arbitration; or
• the decision contradicts Japan’s state policy.

The challenge cannot be filed later than three months from the date on which the challenger received the notice of the award.

Appeal Levels

Courts’ decisions to revoke or contest arbitral awards can only be appealed once & within two weeks of receiving the decision. If you need to resolve a dispute in Japan, please, keep in mind that court fees are nominal & are borne by the losing party.

Recognition & Enforcement

National and foreign decisions have the same effect as a final decision. According to Japanese law, parties must apply to courts to enforce arbitral decisions in Japan.

National or international decisions may not be recognized or enforced as per the NYC or UNCITRAL’s Model Law. Even if awards are granted in a country that has not signed or ratified the NYC, its rules do apply.

Under Japanese legislation, there’s no limitation period for the enforcement of arbitral awards.

Conclusion