18 May 2020
In the past few decades, arbitration has become a mainstay in resolving legal disputes. Arbitration is a consensual, binding method of dispute resolution and is becoming increasingly popular, particularly in relation to international contracts. The support of arbitration by courts in most states is increasing correspondingly.
There are many reasons for choosing arbitration. Arbitration awards are easier to enforce internationally than judgments handed down by national courts, the proceedings are generally confidential, the forum is neutral and the parties have a considerable choice in the way their disputes are conducted – to name just a few of the key advantages of arbitration.
New arbitral institutions are being regularly created on each continent, in a reflection of an increasingly globalised world requiring neutral, but effective, dispute resolution mechanisms. But which one is the right institution for your client`s concrete business relationship? What are the advantages and disadvantages of the respective institutions? Given the myriad of arbitration rules worldwide, such a question by no means has an easy answer.
This Tool Box on Arbitral Institutions shall provide you with a first overview of the key features of the most popular arbitral institutions that should be considered before drafting an arbitration clause. The benefit of arbitration is that it can be tailored to the needs of the parties. It is therefore important, before agreeing on an arbitration clause, to consider issues such as costs, the location of the parties, whether the local courts can rely on them to recognise and enforce an arbitral award of the respective institution, if the arbitral tribunal is able to grant interim relief, etc. The toolbox does not claim to be exhaustive; there are simply too many aspects that need to be taken into consideration when choosing the most appropriate arbitration institution. Your Taylor Wessing Arbitration Team is happy to assist you in all matters from the drafting of the arbitration clause to the conduct of the arbitration proceeding up to the enforcement of the award.
Internationally accepted institution, which administers both national and international arbitral proceedings. The costs are moderate and the proceedings are in general handled quite quickly. The revision of the rules conducted in 2018 provide for many mechanism that enhance the efficient conduct of the proceedings. Moreover, the arbitral tribunal is required to promote settlements at any stage of the proceedings.
Still not very popular in international cases.
The involvement of the DIS is relatively reluctant, e.g. the DIS Secretariat does not review the award.
The rules adopted in 2018 focus on fast and efficient procedural management. Settlements are also encouraged.
Commercial disputes with either two German parties or at least a European context.
Read the whole pdf here: Tool Box on Arbitral Institutions