How does your jurisdiction rank for international dispute resolution? New Taylor Wessing research identifies the best...and the rest

As dispute resolution becomes ever more international, new research by European and international law firm Taylor Wessing LLP provides a comprehensive assessment of current trends and attitudes in the sector. The research involved more than 300 key decision makers in organisations worldwide, 60% of whom said they expected the volume of disputes to increase in the next 12 months, often against a backdrop of reduced legal budgets.

The survey also offers useful comparisons between a number of important established and emerging jurisdictions worldwide.  The UK, Australia and Canada are named the most reliable and predictable jurisdictions in which to determine major commercial disputes. Singapore, an increasingly popular centre for dispute resolution, is also highly rated. With the effects of the global economic situation still being keenly felt, Canada emerges as the jurisdiction that offers "best value for money".

Within the US, north Eastern states including New York, Connecticut and Pennsylvania, performed better than elsewhere, and were particularly recommended for the concentration of their legal expertise.  But users reported vastly different experiences between states.

Turkey, Poland and South Africa's performances as arbitration venues all exceed their rankings for court litigation.  Both Germany and the UK were cited as preferred jurisdictions for litigation, thanks to the strong reputation of their court systems.  Respondents valued their clear body of law and the integrity of their procedure, as well as the plentiful supply of competent professionals. 

Despite being popular investment targets, the BRIC (Brazil, Russia, India and China) countries are rated poorly across all criteria, and clearly still have much to do to bring their legal infrastructures into line with the more developed economies.

Commenting on the findings, James Crabtree head of the insurance group, said:

"This report underscores the importance of dispute resolution provisions in contracts.  The same contractual terms and conditions can mean very different things depending on which jurisdiction you are operating in.  The end result can be radically different depending on the governing law of the contract and the dispute resolution procedure agreed upon."

Richard Marsh, head of the commercial disputes group, said:

"In the current climate it is not surprising that costs remain a key factor in dispute resolution.  Our survey reveals the importance of cost control and options for minimising or hedging the expense of litigation.  Our findings support those of Lord Jackson's Review.  Over 75% of survey respondents consider the "loser pays" model, which is common in Germany and the UK, to be advantageous.

Court litigation is increasingly being viewed as a costly last resort.  This report shows that in-house legal teams need to be confident that their advisers are in a position to advise on the most suitable method of dispute resolution and the best jurisdiction in which to resolve their dispute using these alternative mechanisms.  As businesses increasingly operate on an international scale so the possibilities for cross border disputes increase.  Making sure your organisation is not only using the right method of dispute resolution but is also acting in the most favourable jurisdiction, is critical to achieving the best possible outcome."

Commenting on the report, head of the litigation and dispute resolution practice in Germany Harald Bechteler, said: 

"Arbitration and mediation are gaining increasing popularity among companies, as shown by the study

"The study also proves the importance of dispute resolution clauses in contracts. Companies operating on an international scale should agree the legal system that is most favourable for them in their contracts.”

Ends

Notes to editors

The Taylor Wessing Global Dispute Resolution Survey ran from February – April 2009 and generated responses from over 300 participants worldwide. 

For more information about the survey and results please visit our dispute survey microsite

Key findings

• 60% of respondents predict an increase in disputes in their sector in the next 12 months
• Litigation is the most used form of dispute resolution, but arbitration is the preferred method because it is perceived to be quicker, cheaper or more reliable
• Over 75% of survey respondents indicated that they are not averse to dispute resolution provisions that enable the unsuccessful party to appeal against an arbitral decision
• 77% of respondents said they would not consider using ATE insurance in the future
• In many jurisdictions there is an increasing expectation that the parties will refer disputes to mediation, either before or after litigation. Mediation is now enshrined in the procedure of many courts in the UK and Germany. This development is welcomed by the majority of respondents
• The UK, Australia, Canada and to a slightly lesser extent Singapore, were found to be predictable and reliable jurisdictions in which to settle disputes
• In civil law systems Germany and the Netherlands were ranked ahead of Italy and Spain
• Overall the USA ranked eighth, behind the UK and Germany
• Swiss arbitration was ranked highly by the majority of respondents. South Africa, Poland and Turkey also performed far better in arbitration than in court litigation
• Many jurisdictions that performed strongly were perceived as expensive
• Canada topped the list as the jurisdiction offering "best value for money" in dispute resolution.  Switzerland, France, Germany and Poland also performed well on cost.  The UK and USA were rated poorly
• Despite investment in recent years, the BRIC countries (Brazil, Russia, India and China) still rate poorly as dispute resolution venues across all performance measures

Contacts

For more information, or to speak to a member of the commercial disputes group, please contact Helen Needham at Taylor Wessing:

Tel:      +44 (0)20 7300 4156
Email:   h.needham@taylorwessing.com

Taylor Wessing LLP is a leading law firm providing legal support for commercial organisations doing business in Europe, the Middle East and China. Based in Belgium, Dubai, France, Germany and the UK, Taylor Wessing provides the full range of legal services to major corporations and growing enterprises.

www.taylorwessing.com