Although international arbitration remains relatively unfamiliar to many, just a decade ago, only a handful of companies exclusively opted for arbitration as their preferred dispute resolution method. Today, the landscape has transformed, with hundreds of companies spanning diverse industries embracing the arbitration services offered by legal firms specializing in arbitration.
While international arbitration has steadily gained traction, certain industries have hesitated due to perceived costs. However, it’s crucial to acknowledge that arbitration expenses are on the decline, driven by fierce competition in the market and the imperative for swift resolutions in industries where time is of the essence. Consequently, arbitration has garnered increasing favor from both small-scale enterprises and corporate giants alike
While international arbitration may remain unfamiliar to many, just a decade ago, only a handful of companies exclusively embraced it as their preferred dispute resolution method. Today, the landscape has transformed, with hundreds of companies spanning diverse industries wholeheartedly embracing the arbitration services offered by specialized legal firms.
As international arbitration steadily gains traction, certain industries have been hesitant due to perceived costs. However, it’s essential to recognize that arbitration expenses are on the decline, driven by fierce competition in the market and the necessity for swift resolutions in industries where time is of the essence. Consequently, arbitration has garnered increasing favor from both small-scale enterprises and corporate giants alike.
International arbitration encompasses three distinct phases: negotiation, conciliation, and the arbitration itself. While it is primarily focused on disputes arising from contract enforcement, the concept has expanded to non-contractual disputes such as those related to pollution and natural disasters. Thus, even disputes unrelated to contracts have the potential to become part of international arbitration.
Each phase of mediation demands specific qualities to succeed:
- Negotiation: Parties must first agree on the arbitration agreement terms and, if applicable, the rules of the arbitration institution. Commitment to the decision-making process is crucial. The parties may opt to submit a written outline of key discussion points collectively known as the “plan of procedure.” Once approved by all parties, the plan is formally submitted to the courts, which base their final decisions on the included details.
- Reviewing and Appeal: Following court approval, an arbitrator independently reviews the plan and issues a decision based on the facts. If the arbitrator finds any part not in the public interest, they may request revisions before resubmission.
- Discovery: Discovery is used to gather detailed information about a party. It involves providing proof for allegations, with parties deciding whether to submit only essential discovery or provide all necessary information.
- Disputing Claims: Arbitration agreements often specify the arbitration institution that may handle disputes. In personal injury claims, state-specific arbitration institutions may be mentioned.
- Interim Measures: These are temporary actions taken to halt or prevent specific actions. They may involve filing a claim or conducting mediation or arbitration hearings.
- Arbitration Agreements and Procedures: These generally include components like an arbitration clause, outlining parties and dispute resolution steps, as well as dispute settlement and award provisions. Procedures may vary by state.
In conclusion, international arbitration has evolved significantly, becoming a favored choice for resolving disputes across various industries, despite earlier hesitations related to costs.