FERRERE acted for Agrenco Madeira International, a Portuguese company that purchased soy beans from Uruguayan company Fuentesauco. When Fuentesauco breached the sale of goods contract, Agrenco brought arbitration proceedings before FOSFA (Federation of Oil Seeds and Fats Associations Limited), and obtained a favorable award in England. Fuentesauco did not comply with the award and Agrenco retained FERRERE to appear before the Supreme Court to request exequatur and enforcement.
In March 2012 the request for exequatur was filed. In May, the Chief Government´s Advisor (head of all Advisors and Prosecutors) —who must be heard in all recognition and enforcement proceedings— opposed exequatur arguing that Agrenco had not properly shown that the award was final. FERRERE filed a new motion challenging this opinion. The Supreme Court sided with FERRERE. It considered that it was the defendant’s burden to prove that the award had been annulled or set aside and that the legal opinion rendered by British Counsel (together with a certification of the arbitration institution) stating that the time to vacate the award had lapsed was in any case sufficient evidence that it was final.
The Supreme Court also considered that the arbitrators had jurisdiction although the arbitration clause was included in an unsigned Annex to the contract. It was relevant for the Supreme Court that the defendant had appeared in the arbitration proceeding and that he was able to present his case in order to comply with the requirements of the NY Convention. Furthermore, the Supreme Court reaffirmed that commercial matters among corporations are arbitrable without restriction and that, even in borderline or unclear cases recognition of an award should be granted. Considering that Uruguay has not yet passed an international arbitration law and that in some occasions these principles were disregarded by lower local courts, the criteria set in the decision firmly contributes to the further development of arbitration practice.
FERRERE’s Senior Associate Soledad Díaz, who represented Agrenco Madeira International comments: “The ruling confirms the correct criterion on interpretation of the New York Convention and the general principle that awards should be recognized if they fulfill the requirements of such Convention. It also established that legal opinions rendered by foreign lawyers are admissible evidence to prove some of the requirements of the Convention.”