Tag Archives: Court

New Developments in Mongolian Arbitration Law



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The Parliament of Mongolia approved the newly revised Mongolian Arbitration law.

Firstly, Mongolian Arbitration law approved in 2003 by parliament closely following the example arbitration law of the UN, however the Mongolian Arbitration law has not been accepted as meeting international standards. Cases are resolved by Arbitration in Mongolia are relatively low with 41 cases in 2014, 70 cases in 2015, and only 58 cases in 2016.

Following UN guidance, the Government of Mongolia set out to revise the Arbitration Law in an effort to increase ability for citizens and companies to resolve disputes outside of the courtroom. Parties will be free to choose arbitration, which is expected to be more efficient in terms of time and costs. It is hoped that cases resolved by respected professional arbitrators will have result in outcomes respected by both parties.

A major improvement in the new arbitration law is setting out the detailed procedures for securing implementation and enforcement of the award.

Interestingly, the law also outlines those individuals who will NOT be allowed to operate an arbitration organization. Under the new law, an arbitration organization may be established by the Mongolian National Chamber of Commerce and Industry, Customer and Trade Unions, but not any state organization or government entity. This regulation will provide a positive effect to transparency of the arbitration organization.

Check the following blog post for more detailed information about the new Mongolian Arbitration Law.

Enforcement of a Foreign Judgment in Mongolia



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We have recently handled a litigation case involving enforcement of a foreign judgment in Mongolia. While, Mongolia has no specific detailed law dedicated to addressing issues in connection with enforcement of foreign court decisions, there are provisions set forth in Article 194.1 of the Civil Proceeding Law stating, “Procedures for the enforcement of Mongolian and foreign Courts decisions are determined by the legislation of Mongolia, the international treaties Mongolia has concluded with a foreign country or to which is a party.” Chapter 11 of the Law on Enforcement of Court Decisions also confirms enforcement of a foreign court judgment is regulated by the laws and regulations of Mongolia, by a treaty entered with the foreign country and by international treaties to which Mongolia is party.

 In Mongolia, both foreign and domestic persons are entitled to request enforcement of a foreign court decisions in the territory of Mongolia. The Court Decision Enforcement Agency is entitled to enforce court decision of foreign courts and international arbitration if so specified in the international treaty.

 In international civil procedure matters, Mongolia has ratified the 1954 Hague Convention on Civil Procedure. Furthermore, Mongolia has concluded a Bilateral Treaty to Mutually Provide Legal Aid in Civil and Family Cases with several countries, including Peoples Republic of China, Russia, France, Bulgarian, Poland, Ukraine, Hungary, India and both North and South Korea. Unfortunately, Mongolia has not signed a treaty with some of the larger developed countries, including the United States of America, United Kingdom, Japan, Australia and German, with respect to mutual recognition of court judgments.

 In order to be enforced in Mongolia, a foreign court decision must first be confirmed and accepted by the court that made the decision to compel enforcement in Mongolia. Further, the foreign court decision must be officially translated into Mongolian and delivered to the court along with relevant evidences in accordance with the proper regulation under the Bilateral treaty between the countries or international treaty.

If any of the following situations would occur pursuant to the enforcement of a foreign court judgment here in Mongolia, a foreign court decision will not be enforced in Mongolia:

  • if  damage to the independence and national security of Mongolia may occur;
  • if it contradicts commonly accepted norms;
  • if there is a valid court decision made by Mongolian courts on the case in question;
  • if the court decision is related to litigation that belongs to the special jurisdiction of Mongolian courts;
  • if the court decision is not yet validated; or
  • statute of limitation for enforcing a foreign court judgment has lapsed.

All of that said, as a practical matter, Mongolian courts rarely enforce foreign court judgments, though it is possible. Foreign court decisions related to family issue, specially divorce, and the child custody and maintenance have increasingly been enforced over the past two decades.