About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


35 Int'l L. News 1 (2006)

handle is hein.journals/inrnlwnw35 and id is 1 raw text is: INTERNATIONAL LAW NEWS WINTER2006 VOL. 35 NO. 1 SECTION OF INTERNATIONAL LAW AMERICAN BAR ASSOCIATION WWWABANET.ORG/I NTLAW WHT CHOS INTTTOAL ARBITRATO FOR ITRATIOAL CO E CAL DIPUE BY RAMON MULLERAT !he resolution of disputes arising from international commercial transactions is generally complex and problematic. Different languages, customs, cultures, parties' locations, and legal systems contribute to this com- plexity. That is why, in international disputes, arbitration is often advisable over litigation, and why it has become the dominant system of resolving disputes in international busi- ness and trade. Advantages of Arbitration Below are the advantages of choosing arbitration for interna- tional business disputes. Time: Thanks to the fact that each case stands on its own merits (avoiding a backlog of cases), that the proceedings are flexible, and that the possibility to appeal the award is limit- ed, arbitration is generally quicker than litigation. Cost: Saving time means saving money Traditionally, one of the advantages of arbitration is its lower cost in compari- son to litigation. Unfortunately, the tendency is for arbitration to become lengthier and costlier, so all involved should strug- gle to return to the original simplicity of arbitration. Flexibility: The private nature of the arbitration proce- dure allows the parties and arbitrators to fix the procedure. At the same time, they have discretion, not afforded to national court judges, to move away from the rigid nature of the litiga- tion procedure. This flexibility is particularly useful in the field of international arbitration, when the parties and arbitra- tors come from different jurisdictions and legal systems. Party autonomy: In arbitration, parties have the option to choose the relevant rules and laws. Party autonomy is thus the main priority, and the arbitration process aims to give effect to it at all possible times, enforcing and supporting the parties' consensus to arbitrate, rather than interfering with it. continued on page 6 SPECIAL FOCUS ISSUE T R A N S NATIONAL LITIGATION & ARBITRATION