Five Tips to Managing Your International Arbitration
The complexities of a globalized economy increase the risk and frequency of cross-border commercial disputes. JAMS offers solutions for parties located in different jurisdictions to resolve their disputes. More Fortune 100 companies than ever use mediation and arbitration, among other tools, recognizing that ADR offers flexibility of outcome, risk mitigation, and legal cost savings. These tips will help you lay the ground work for a successful resolution of an international dispute.
1) Select an Experienced Arbitrator
Clients have many options when it comes to arbitrator selection. While parties who use the JAMS International Arbitration Rules are not required to select a JAMS arbitrator, there are clear advantages to choosing a highly experienced, knowledgeable and respected panelist from JAMS. One is party autonomy. Parties in JAMS arbitrations can agree on all three arbitrators; agree to appoint one arbitrator and then agree on the Chair; or have the two arbitrators agree on a Chair. In the event that the parties cannot agree, or if they prefer to have the ADR provider do the appointing, they can provide the parties with a list of potential arbitrators. The list procedure offers the parties some choice regarding the Sole Arbitrator or Chair and ensures that the provider will not appoint a Chair from a country or background the parties did not anticipate.
2) Understand the Process and Timeframe Involved
International arbitrations typically take about a year to complete. The JAMS International Arbitration Rules set forth the standard timeframe for arbitration. Article 31 provides that the dispute should, in most circumstances, be heard and be submitted to the Tribunal for decision within nine months after the initial pre-hearing conference, and the final award should be rendered within three months thereafter. Pursuant to Article 21 of the JAMS International Arbitration Rules, the parties can agree to shorten the time limits.
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 ability to obtain enforcement of an arbitration award pursuant to the 1958 UN Convention on the Recognition and Enforcement of Arbitral Awards, frequently referred to as the New York Convention. More than 145 countries are signatories to this convention, making it one of the most successful commercial treaties ever implemented. There is no equivalent treaty for the enforcement of judicial awards, making arbitration the leading vehicle for international dispute resolution.
4) Mediation is also an option
The JAMS International Arbitration Rules have a unique feature known as the “Mediator-In-Reserve” policy. Within one week of commencing an international arbitration at JAMS, the parties are given a list from which they are encouraged to select a JAMS mediator who will be on “reserve” should the parties at any time decide they want to mediate. This accomplishes two things: It avoids the arbitrator having to wear two hats and it allows the parties to lose no time once they have decided they would like to mediate.
5) Work With the Best
JAMS is the largest private provider of alternative dispute resolution services worldwide and handles an average of 12,000 cases annually, including thousands of high-stakes, complex, multiparty arbitrations and mediations. JAMS offers a prestigious panel of skilled neutrals supported by superb case management and administration at a competitive price.
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