Rise in international arbitration and how it assists business to resolve their disputes
International arbitration is an increasingly popular method of resolving commercial disputes for businesses of whatever size. Arbitration is quicker, cheaper and more convenient than going to court, as well as having the principal commercial advantage of secrecy.
Avoiding the inconsistencies of local laws and the unreliability of law enforcement officials in many jurisdictions, companies opt for neutral, expert dispute resolution in a tribunal of their choosing as their preferred method of dispute resolution.
Another factor that is coming into play is the increasing trend of the bigger companies in emerging economies to establish operations or invest in other countries. Where they are in dispute, they mostly opt for arbitration, which means this type of dispute resolution is increasingly widespread and, correspondingly, there is now a large number of highly respected arbitrators.
A final important factor is that, where business transactions take place across several jurisdictions, arbitration is a more efficient way of hearing a dispute.
These are key reasons why international arbitration is on the increase. The number of international arbitrations in the many different forums has risen appreciably, from 1,847 in 2000 to 2,773 in 2012, according to FTI international.
Arbitration offers several important advantages to companies wishing to settle their business disputes:
- Confidentiality: all the proceedings and the result can be kept private without anyone else having to know.
- Impartiality: the parties decide who should arbitrate their dispute. The arbitrator can act impartially and independently leading to a fairer result.
- Procedural flexibility: arbitrations are less formal than court proceedings.
- Cost savings: arbitration is generally cheaper than litigation.
- Speed: the dispute is usually processed and heard more quickly than litigation.
- Enforceability: most states have signed conventions that ensure that arbitral “awards” can be enforced in the courts, if necessary.
As the numbers of international arbitration cases has risen, so has been the requirement of parties to arbitrations to obtain expert legal advice and advocacy skills. Barristers are ideally equipped to provide this service to businesses that find themselves in a dispute that is due to go to arbitration.
If you need advice from a barrister on an international arbitration, contact an international arbitration barrister here and you will be in touch with a barrister within minutes.
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Arshad is a commercial dispute resolution lawyer. His experience encompasses the full spectrum of the business cycle. Arshad’s focus is international, but he also has English commercial dispute resolution experience, and is a member of the Commercial Court User’s Committee.
His main areas of expertise are commercial and international arbitration,...