LexisNexis: Converting unpaid judgments into internationally enforceable awards

Hilton Mervis, a partner and international litigation practitioner at McDermott Will & Schulte, London has proposed a novel contractual arbitration clause designed to address long‑standing difficulties in enforcing cross‑border monetary court judgments. The core idea is to allow an unpaid final court judgment to be converted into an arbitral award, which can then be enforced internationally under the New York Convention rather than relying solely on fragmented national judgment‑recognition regimes.  The mechanism proposed is simple. Parties agree at the outset (at contract formation) to an arbitration clause that remains dormant unless and until a specified enforcement trigger is met.  If one party to the contract obtains a final and binding court judgment for payment in accordance with the contractual obligations agreed, and the judgment debtor fails to pay within a defined period, the prevailing party may invoke arbitration.  Mervis’ proposal responds to a recognised enforcement…