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What legal requirements are there for recognition of an award? Must reasons be given for the award? Does the award need to be reviewed by any other body?
An arbitral award in writing rendered and signed by an arbitral tribunal will be recognised by the Danish courts. An award need not be reviewed by any other body according to Danish law. Further, according to the Danish Arbitration Act any arbitral award rendered by an arbitral tribunal must be reasoned, unless otherwise agreed by the parties.
Timeframe for delivery
Are there any time limits on delivery of the award?
No. Arbitral tribunals will generally seek to move the case forward. An arbitral tribunal can terminate arbitration proceedings if it considers continuation to be unnecessary or impossible.
Does the law impose limits on the available remedies? Are some remedies not enforceable by the court?
Danish law does not restrict private parties from agreeing on certain remedies.
Generally, there are no limits to the agreed remedies that an arbitral tribunal will accept; however, the parties must bear in mind that the tribunal's competence encompasses only the matter covered by the arbitration agreement. This implies that the tribunal cannot impose injunctions on third parties.
As for damages and compensation claims, the tribunal's remedies must be authorised by the applicable law. Some remedies authorised by foreign law may be considered contrary to Danish public policy.
What interim measures are available? Will local courts issue interim measures pending constitution of the tribunal?
It follows from the Arbitration Act that the ordinary courts may commence interim measures even though the parties have agreed to arbitration. This could be a preliminary injunction prohibiting one of the parties to the arbitration agreement from performing certain actions.
Can interest be awarded?
At what rate?
At the applicable rate according to the Danish law on interest (currently around 8% per year).
Is the award final and binding?
What if there are any mistakes?
The Arbitration Act authorises the setting aside of arbitral awards for reasons aligned with Article 34 of the UNCITRAL Model Law and the reasons for refusing to enforce an award pursuant to Article V of the New York Convention. The Supreme Court has recently confirmed the position on the setting aside of arbitral awards in the Taewoong case, where the court confirmed that arbitral awards can be set aside only under extraordinary circumstances in obvious violation of public order and that those circumstances are exhaustively listed in the Arbitration Act. Notably, this is the first Supreme Court judgment on the setting aside of an arbitral award since 2009.
Can the parties exclude by agreement any right of appeal or other recourse that the law of your jurisdiction may provide?
Arbitral awards are final and cannot be appealed. The ordinary courts’ authority to set aside arbitral awards according to Section 37 of the Arbitration Act cannot be waived.
What is the procedure for challenging awards?
A suit to set aside a final award must be filed within three months of issuance of the award.
On what grounds can parties appeal an award?
What steps can be taken to enforce the award if there is a failure to comply?
The ordinary courts will assist as if the arbitral award were a judgment.
Can awards be enforced in local courts?
How enforceable is the award internationally?
This depends on the law of the state in which the party seeks to enforce the Danish award. An arbitral award rendered by an arbitral tribunal seated in Denmark will generally be considered enforceable in all states which have adopted the New York Convention.
To what extent might a state or state entity successfully raise a defence of state or sovereign immunity at the enforcement stage?
Under Danish law, states and state entities may enter into arbitration agreements; as such, according to the Arbitration Act, they are bound by any final arbitral award. However, the legal authority to enter into an arbitration agreement may be regulated by the law of another state (eg, the law of the domicile of the party in question) instead of Danish law.
Are there any other bases on which an award may be challenged, and if so, by what?
See Section 37 of the Arbitration Act which implements Article 34 of the UNCITRAL Model Law.
How enforceable are foreign arbitral awards in your jurisdiction?
Arbitral awards are generally upheld by Danish courts. There are few cases in which a party has successfully challenged an arbitral award.
Will an award that has been set aside by the courts in the seat of arbitration be enforced in your jurisdiction?
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