Journal of Siberian Federal University. Humanities & Social Sciences / Punitive Damages Awards in International Arbitration: Franchising Case

Full text (.pdf)
Issue
Journal of Siberian Federal University. Humanities & Social Sciences. 2021 14 (11)
Authors
Thi Thuy Dung Tran
Contact information
Thi Thuy Dung Tran: Law Institute, Peoples’ Friendship University of Russia Moscow, Russian Federation; ; ORCID: 0000-0002-7423-8906
Keywords
punitive damages; international commercial arbitration; arbitral punitive damages award; franchise
Abstract

This article is written to evaluate the practical significance of punitive damages in the field of arbitration concerning international commercial disputes and franchise disputes. It finds that punitive damages awards are frequent in domestic arbitrations in the United States but not internationally common. This article discusses the severity of the punitive damages awards to explain why such decisions are not frequent in international trade disputes; it still has a significant influence that concerns the contracting parties, making them exclude punitive damages in their agreements. This article also explains the reasons for limiting the use of these punitive damages. The first one is the limitation of punitive damages applied to arbitration. Indeed, punitive damages are only recognised under a handful of domestic arbitration laws in a number of countries, especially the ones associated with contract claims. Secondly, the enforceability of such awards is internationally limited due to public policy. Therefore, this difficulty caused the arbitral tribunal to refuse to award such damages. Finally, the statistics on punitive damages award in international commercial arbitration are scarce, so the article refers to provide and analyse the cases that are not international-thereby discussing and evaluating the suitability of punitive damages in the context of international commercial arbitration

Pages
1613–1625
DOI
10.17516/1997-1370-0844
Paper at repository of SibFU
https://elib.sfu-kras.ru/handle/2311/144841

Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).