Federal Express Corporation v Cosmos European Travels Anstalt

Federal Express Corporation (FedEx) sought to enforce an arbitral award against Cosmos European Travels Anstalt (Cosmos). The dispute arose from a contract for international air freight services, which contained an arbitration clause. Following a dispute over payment, FedEx initiated arbitration proceedings in Geneva, Switzerland, which resulted in an award in its favour. FedEx then sought to enforce this award in Australia under the *International Arbitration Act 1974* (Cth) (the Act), which gives effect to the *Convention on the Recognition and Enforcement of Foreign Arbitral Awards* (the New York Convention). The application was heard by Justice Murray of the Federal Court of Australia.

The primary legal issue before the court was whether the arbitral award was enforceable in Australia. This required the court to consider the grounds for refusing enforcement as set out in Article V of the New York Convention, as incorporated into Australian law by the Act. Specifically, the court had to determine if Cosmos could establish any of the enumerated grounds for refusing recognition and enforcement, such as lack of proper notice of the arbitration proceedings or the inability to present its case.

Justice Murray found that Cosmos had failed to establish any of the grounds for refusing enforcement under Article V of the New York Convention. The court was satisfied that Cosmos had been given proper notice of the arbitration proceedings and had been afforded an opportunity to present its case. The evidence did not support Cosmos's contentions regarding procedural irregularities or lack of jurisdiction by the arbitral tribunal. Consequently, the court concluded that the arbitral award was capable of recognition and enforcement in Australia.

The court ordered that the arbitral award made in Geneva on 15 March 2019 in favour of Federal Express Corporation be recognised and enforced in Australia.