Cross Strait Relationship: Even if the arbitral award rendered in the Mainland China has become enforceable upon the recognition by the ruling of the Taiwan court, the debtor may still be allowed to file an objective lawsuit against its enforcement basing on the facts occurring prior to the grant of such arbitral award.
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[2015/04/13]
The Supreme Court recently rendered a judgment reaffirming their view as indicated in 96 Tai-Shang-Tze No. 2531 Judgement. It indicated that a final ruling, judgment and the arbitral award rendered in the Mainland China the recognition of which by a Taiwan Court is made through a non-contentious procedure and therefrom shall become enforceable in Taiwan only without substantial binding force (res judicata) in accordance with the Act Governing Relations between the People of the Taiwan Area and the Mainland Area (the “Act”). Since the lawmakers intentionally made the Act different from the Civil Procedure Code and Arbitration Law in terms of the special relationship between two areas, the relevant provisions in the Civil Procedure Code and Arbitration Law shall not be applied as basis to grant the binding force upon the recognition ruling of the final ruling, judgment and the arbitral award rendered in the Mainland China. Therefore, in this case even if the arbitral award rendered in the Mainland China has been recognized by a Taiwan court’s ruling to become enforceable, the debtor/defendant may still be able to file an objective lawsuit against the enforcement of such award basing on the facts occurring prior to the grant of such award.
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