International Arbitration

Arbitration can be used to resolve a wide range of disputes including commercial, consumer, employment and international disputes. It’s usually used when parties have entered into a written agreement to resolve disputes via arbitration. 

If the parties have entered into a written agreement that provides for all disputes to be resolved via arbitration and one of the parties refuses to engage, the other party can seek a court order to compel arbitration. 

Yes. Parties can agree on a location for the arbitration, which is likely to be a neutral venue to avoid any suggestion of bias.

The advantages of arbitration include:

• Choice and flexibility — arbitration can be specifically tailored to the parties’ needs, including the ability to choose the arbitrators, country, language and procedure.
• Confidentiality — documents disclosed during arbitration are confidential and hearings take place in private.
• Efficiency — arbitrations (at least in theory) can be resolved quicker than court proceedings as the parties involved won’t have to deal with the often-backlogged court system when fixing dates for case management hearings and final hearings.
• Enforceability — arbitration awards are enforceable in many countries under the New York Convention, which has over 170 signatories.
• Expertise — the parties can appoint one or more arbitrators with the relevant knowledge, skill and expertise to resolve the dispute.

The disadvantages of arbitration include:

• Cost — arbitration can be expensive, particularly in complex cases. There are arbitrators’ fees and hearing venue fees to pay, in addition to your usual legal fees.
• Lack of transparency — as arbitration proceedings are held in private, there’s less public scrutiny. This can be a disadvantage if public accountability and transparency are important.
• Limited appeal options — arbitration awards are generally final and binding, with limited grounds to appeal. If the arbitrator makes a legal error or misinterprets the evidence, it can be challenging to have the decision overturned.
• Limited disclosure — the disclosure process is typically more limited than in court proceedings, which can be problematic if one party requires extensive evidence to support their case. 

The length of an arbitration will vary greatly depending on the complexity of the case and approach of the parties. It can take anywhere from six months to several years. 

Yes. Arbitration is generally final and binding, so the parties must comply with the arbitrator’s decision.

Arbitration involves a binding decision made by an arbitrator. Other forms of alternative dispute resolution (including mediation) usually focus on trying to facilitate a negotiated settlement between the parties, with no binding decision imposed.

Arbitration institutions include the Paris-based International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA). They provide administrative support, set procedural rules and help with the selection of arbitrators.