Dispute Resolution & Arbitration

As a general rule, no. A foreign civil judgment that is final and binding is recognized in Taiwan without a separate recognition judgment if none of Article 402's grounds applies. Enforcement is different: to attach, seize or sell assets in Taiwan, the creditor must obtain a Taiwan judgment permitting enforcement under Article 4-1 of the Compulsory Enforcement Act, then apply for execution. The court examines indirect international jurisdiction under Taiwan law; if the losing defendant did not appear, timely lawful service of the notice or summons in that country or through Taiwan judicial assistance; whether the judgment or proceedings violate Taiwan public policy or morals; and mutual recognition. The merits are generally not retried. Usually prepare an original or official judgment copy, proof it is final, service or appearance records and a Chinese translation. Authentication by a Taiwan overseas mission or other proof depends on the documents and court directions.

Usually not for the merits. If the claim falls within a valid and workable arbitration agreement and you sue in Taiwan, the defendant may apply under Article 4 of the Arbitration Act before oral argument on the merits. If the requirements are met, the court must stay the action and order arbitration within a set period; dismissal follows only if that deadline is missed. The result may differ if the agreement is manifestly nonexistent or invalid, inoperative or incapable of performance, outside the dispute's scope, or the defendant has already argued the merits without timely invoking it. Except for manifest invalidity, the tribunal generally has priority to decide jurisdiction. Arbitration does not bar interim court protection: where a Taiwan court has jurisdiction and requirements are met, provisional attachment or an injunction may still be sought. Check the institution, seat, law governing the arbitration agreement, language, scope, limitation, interim relief and costs before acting.

Do not begin by asking only where to sue. First check the governing-law, jurisdiction and arbitration clauses, then identify the correct debtor, enforceable assets and locations, limitation deadline and dissipation risk. Asset location may connect jurisdiction and matters for interim relief and enforcement, but is not always an available merits forum. A valid exclusive-court or arbitration clause may require proceedings in the agreed forum, followed by recognition and enforcement where assets are. Before filing, local counsel should confirm jurisdiction, enforceability of the resulting judgment or award and whether assets should first be frozen. Preserve the contract, orders, delivery or acceptance records, invoices and payment communications; if urgent relief is unnecessary, a demand and negotiation may follow, ideally securing an acknowledgment, payment plan or security. Limitation and tolling rules vary, and demands or negotiations may not stop time. Act early.

Do not treat the seat as merely where a hearing occurs. Confirm the dispute scope; institutional or ad hoc form; institution and rules; juridical seat by city and jurisdiction; number of arbitrators; language; substantive governing law; and, where appropriate, the law governing the arbitration agreement itself. The seat determines procedural law and supervisory courts, although hearings may occur elsewhere or remotely. Arbitrator number, rules, amount and complexity also affect cost. These are not invariably statutory validity requirements and defaults may fill gaps, but omissions create threshold disputes and expense. Start with the chosen institution's current model clause, complete transaction-specific options and check mandatory rules at the seat and likely enforcement locations; do not splice institutions and rules without confirming the arrangement works. A broad court clause covering the same disputes should not sit beside arbitration without clear scope or priority. But interim relief, judicial assistance, set-aside, recognition and enforcement commonly coexist with arbitration, and clear tiered, carve-out or elective clauses may work in some jurisdictions. Have counsel familiar with the seat and enforcement locations review the clause.