The complexities of any globalized economy increase the risk and frequency of cross-border commercial disputes. More Fortune 100 companies than ever before use mediation and arbitration, among other tools, recognizing that ADR offers flexibility of outcome, risk mitigation, and legal cost savings. These tips can help you lay the bottom work for an effective resolution of a global dispute.
1) Select a skilled Arbitrator
Clients have many choices when it comes to arbitrator selection. While parties who use the International Arbitration Rules are not required to decide on a JAMS arbitrator, there are obvious benefits to choosing an extremely experienced, knowledgeable and respected panelist. The first is party autonomy. international arbitration can acknowledge all three arbitrators; agree to appoint one arbitrator and then acknowledge the Chair; or have both arbitrators acknowledge a Chair. In the event that the parties cannot agree, or if indeed they prefer to really have the ADR provider do the appointing, they can offer the parties with a set of potential arbitrators. The list procedure offers the parties some choice regarding the Sole Arbitrator or Chair and means that the provider will not appoint a Chair from a country or background the parties didn’t anticipate.
2) Understand the procedure and Timeframe Involved
International arbitrations typically take in regards to a year to complete. The International Arbitration Rules set forth the typical timeframe for arbitration. Article 31 provides that the dispute should, in most circumstances, be heard and become submitted to the Tribunal for decision within nine months following the initial pre-hearing conference, and the ultimate award should be rendered within three months thereafter.
3) Ensure the Enforceability of Awards
One of the most cited reasons parties opt for international arbitration when dealing with cross-border disputes is the capability to obtain enforcement of your arbitration award pursuant to the 1958 UN Convention on the Recognition and Enforcement of Arbitral Awards, frequently referred to as the New York Convention. A lot more than 145 countries are signatories to the convention, making it one of the most successful commercial treaties ever implemented. There is absolutely no equivalent treaty for the enforcement of judicial awards, making arbitration the best vehicle for international dispute resolution.
4) Mediation is also an option
The International Arbitration Rules have a unique feature known as the “Mediator-In-Reserve” policy. Within seven days of commencing a global arbitration, the parties receive a list that they should decide on a JAMS mediator who will be on “reserve” if the parties at any time decide they would like to mediate. This accomplishes a couple of things: It avoids the arbitrator needing to wear two hats and it allows the parties to lose no time once they have decided they would like to mediate.