Although undesirable, it is inevitable with this volume of transnational trade, that some disputes will arise. Some of those disputes may be settled amicably through, for example, alternative dispute resolution (referred to in practice as ‘ADR’), such as expert determination, mediation and negotiation, and others may be finally resolved by judicial proceedings or arbitration. The final decision rendered by a court is usually referred to as judgment, while the final decision reached by the arbitration tribunal is called an arbitral award.
International Commercial Arbitration is a special area of law. Our international arbitration team of international arbitration lawyers and arbitration specialists, primarily based in Dubai, are at your service in all cases requiring expert and impartial arbitration specialists for resolving commercial disputes between companies from different countries, regardless of whether the dispute arose within the territory of one of the clients’ home states or the parties involved are from third countries.
Most of disputes may be settled amicably through alternative dispute resolution (referred to in practice as ‘ADR’), such as expert determination, mediation and negotiation. In these cases, the objective is to find a solution that satisfies both sides. If you want to find out more about international commercial mediation and our mediation services, follow this link.
The second option is arbitration, which is a specialized area of law and does not include the principle of amicability, meaning the resolution doesn’t have to be acceptable to both parties, as they are leaving the decision up to the arbitrator.
Arbitration is a form of alternative dispute resolution in which both parties agree to entrust the final decision to an arbitrator.
Arbitration may be local arbitration or international. Also, there are international arbitration proceedings that is subject to public international law. If you are interested in international investment arbitration, follow this link.
This resolution carries the legal weight of a contract and is fully recognized by most legal systems. Our firm has extensive experience in alternative dispute resolution through international arbitration. We have string and well-founded history in international commercial arbitration in the Middle East, including the UAE, Saudi Arabia, Qatar and Jordan.
Broadly speaking, when disputes arise, either party may resort to court in an attempt to obtain a final and enforceable judgment. The court, in it’s traditional sense, refer to judge(s) who are appointed and being paid by the state. Resorting to court, as a principle, does not require an agreement between the concerned parties. The right to resort to court is, in its broadest sense and broadly speaking, is a civil right.
Generally speaking, in international commercial arbitration however, the concerned parties right to refer to arbitration stem from the agreement between the parties themselves. For one reason or another, the parties do not wish to go to court but rather to obtain an arbitral decision, called an arbitral award, that is final and enforceable. Although the volume of court disputes are high, according to practitioners expert in the field, in transnational commerce, arbitration is widely trusted in international commerce.
If the parties elected to resort their disputes to arbitration, either before the dispute arise (arbitration agreement) or after (submission agreement), then the court will act a support for counterparties in case they face some impediments throughout the entire arbitral proceedings.
International Commercial Arbitration can either be institutional or ad-hoc. Institutional briefly means that there is an institution that is administering the process of the arbitral proceedings. Some examples of known institutions are the International Chamber of Commerce (ICC), London Court of International Arbitration (LCIA), Dubai International Arbitration Centre (DIAC), Singapore International Arbitration Centre (SIAC), Hongkong International Arbitration Centre (HKIAC) and China International Economic and Trade Arbitration Commission (CIETAC), Cairo Regional Centre for International Commercial Arbitration (CRCICA), Lagos Court of Arbitration (LCA), Swiss Chambers’ Arbitration Institution (SCAI), Judicial Arbitration and Mediation Services (JAMS), International Centre for Dispute Resolution (ICDR), American Arbitration Association (AAA) and German Arbitration Institute (DIS).
So far as concerns ad-hoc arbitration, it means an agreement to arbitrate not under the auspices of any institution. The prominent example is the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules. UNCITRAL also introduced a Model Law on International Commercial Arbitration designated to assist States in reforming and modernizing their laws on arbitral procedure so as to take into account the particular features and needs of international commercial arbitration’. Many countries confirmed that their internal arbitration laws are in line with the UNCITRAL Model Law.
Consult with LAC arbitration lawyers
Contact usWritten arbitration agreement means that the parties agreed to resolve current (submission agreement) or future (arbitration agreement) disputes through arbitration. Generally, such agreement is considered a standalone agreement and any other term, such as the seat or language of the arbitration proceedings, do not affect the validity of the written agreement to arbitrate. Although in principle, the local laws do recognise the parties agreement to arbitrate, some matters may not be possible to be resolved through arbitration (arbitrability of the agreement).
If the parties elected to choose the seat of arbitration, it does not mean that the parties have to be in that specific jurisdiction to commence, meet or proceed in the arbitral claim. As Redfern and Hunter put it: “[t]he place chosen will [among other things] establish the jurisdiction of the local courts of that place regarding any review of the arbitral award;”.
Furthermore, an agreement of the place or seat of arbitration does not mean that the applicable law on the substance of the matter is the same law. For example, a claim may be governed by the Saudi or UAE or French law, while it is seated in Zurich and, therefore the Swiss procedural rules will apply.
Depending on the agreement, the applicable rules or the procedural law, the arbitral tribunal is selected. The Tribunal’s primary role is to issue an enforceable award. As can be already concluded, this power is derived from the parties agreement. Thanks to the New York Convention of 1958, if the award is rendered in country A, it is possible to enforce, and thereafter execute, it in country B and the local court’s powers to reject to will be limited. Even if country B is not a party to the New York Convention, it is possible to enforce the award in accordance with any other bilateral, regional or international instrument (if any) or in accordance with the local laws of country B.
Many procedural laws, require the tribunal to render an award within six (6) months from the date the tribunal is constituted. In practice, although some awards are rendered within the ambit of six (6) months, it does take more. There are countless of reasons why legal proceedings may take longer than it was originally expected. Furthermore, the constitution of the arbitral tribunal itself may take time that can either be predictable or, in some case, not.
Similar to court litigation, it is possible to file a counterclaim. Injunctions are also possible in international commercial arbitration. Specifically, anti-suit injunctions (ASI) may be issued to prevent a party from initiating or proceeding with court proceedings that are against the agreement to arbitrate.
All the three countries confirm that their arbitration laws are in line with the UNCITRAL Model Law. We assisted the Jordanian government with drafting the Jordan arbitration law. We were also consulted by the UAE government to advice on the UAE arbitration law. Although all jurisdictions may be familiar with arbitration, international commercial arbitration, and it’s applicability to each jurisdiction may differ. We have all the expertise, know-how and resources needed to deliver high quality work for our clients.
Our International Commercial Arbitration services include, without limitation advising or participating in: the agreement, the entire arbitral proceedings cycle, including drafting and filing the notice of arbitration or responding to the notice, the statement of claim or as the case may be counterclaim, filing precautionary measures, anti-suit injunctions, object on the validity existence and scope of the arbitration agreement, nominating arbitrators, the place of arbitration, the language of the arbitration, the applicable law, appointing experts, requests for referral to arbitration, filing applications and objections, check the impartiality and independence of the arbitrator(s), attending hearings, get assistance from courts where needed, obtain third party funding, examination of witnesses and cross-examination, advising on the IBA Rules and Prague Rules, agreeing and negotiating the terms of reference or any other similar document, file or respond to requests for expeditious proceedings or interim measures, negotiate settlement proposals, approve or reject the publication of the award, submit applications to rectify or correct and so forth, file applications to enforce or annul the arbitral awards.
International commercial arbitration is an alternative dispute mechanism that is fairly an acceptable, and preferable mean of settling international commercial disputes. The alternative mechanism stems from the agreement of the parties and, therefore, allows the parties to be more flexible in order to determine how the dispute will be settled. Whether you seek an experienced international arbitration lawyer, appointing an arbitrator or opting for third-party funding, we can help you to achieve your objectives.
For more information, please contact us at arbitration@lac.ae.