Volume 73, Number 5

November 1998

Chromalloy: United States Law and International Arbitration at the Crossroads

Stephen T. Ostrowski, Yuval Shany

This Note will critique the Chromalloy analysis, identify the key issues raised by the decision, and suggest the proper interpretation of the New York Convention as a major multilateral legal instrument. Part I discusses the New York Convention, as well as relevant portions of the FAA and state law regarding enforcement of foreign judgments. Part II presents the facts and reasoning employed by the district court in Chromalloy, and offers a critical analysis of the case, particularly regarding the problems posed by the court’s reliance on Article VII of the New York Convention as the basis of its decision. Part III examines the relationship between the respective rules for the recognition of arbitral awards and foreign judgments. This Note then proposes guidelines for handling such conflicts in the future and argues that Article V is the more appropriate mechanism to consider all of the relevant interests.