WHAT IS ARBITRATION?

Arbitration arises by the agreement of parties to submit their dispute to a private group of “judges,” known as arbitrators. This agreement to arbitrate is usually set in writing at the time of the formation of a contract between the parties, but may also come about after the dispute arises. We offer both domestic & international arbitration.

The parties must pick a set of procedures under an arbitration institution by which to abide during the arbitration proceeding and a place for the arbitration. In some cases, the institution and its procedural rules are already contained within the arbitration agreement. In other cases, the parties must decide at the time of the dispute which institution to use.

The arbitrators hear the parties in accordance with the rules of procedure chosen and must maintain impartiality throughout the process. They then render an “award,” the equivalent of a private judgment. The award may then be taken by the party who wishes to enforce it or vacate it (declare it invalid) in the court most appropriate to that party. For example, in an international case, if a Plaintiff, known as a “claimant” in arbitration, wishes to have an award enforced against a Defendant, known as a “respondent,” in Country X because the respondent has assets in Country X, then Claimant will have to present the award to a court in Country X for enforcement. A domestic case would require enforcement of the award in front of the appropriate local court or court where the asset is present.

Most countries in the world have adhered to the New York Convention, which promotes the recognition and enforcement of arbitration awards. The Convention leaves very few and specific exceptions for the non-enforcement of an award (vacating an award).

For more information on our domestic and international arbitration please refer to the blogs and resources we have made available on our website or do not hesitate to contact us directly contact us.

WHEN TO CONSIDER ARBITRATION?

  • During the formation and redaction of a contract/transaction
  • During the formation and redaction of a letter of intent
  • When a dispute arises and there is not yet an arbitration agreement
  • When and if a party is ordered to arbitrate in a case where an arbitration agreement already exists, but a Plaintiff has   already filed suit in court
  • For the enforcement of an award

 

WHAT ARE BENEFITS OF ARBITRATION?

International arbitration may have many advantages to be considered by a party at the time of formation of the contract, including, but not limited to the following:

  • Flexible location for the arbitration to take place or, in some cases, virtual arbitrations
  • Confidentiality
  • Shorter timeframe for resolution of conflict, allowing for faster resolution
  • More determinate and pre-set costs, allowing for a clear indication of the costs
  • Often a more cost-effective resolution
  • Possibility of choosing from rules and procedures to adhere by
  • Flexibility on language used for the arbitration
  • Possibility of deciding which laws will apply to the dispute, through the selection made in the arbitration clause or the contract
  • Easier recognition of the award than of some judgments in different countries
  • Avoiding inhospitable courts of foreign jurisdictions in some cases