Most of us think court proceedings are the best way to settle disputes, but it is not like that. There are many other ways to solve disputes between parties. Arbitration is one of the processes of resolving issues arising between two parties due to conflict. If you want to avoid court proceedings, you can choose arbitration and avoid going to court. Business partners can sign an arbitration agreement to solve their disputes by signing a single document. However, such a process is a mutual decision that parties follow.
International commercial arbitration is a process to resolve a dispute that arises under commercial contracts. It is a consensual, neutral, binding, and private means of the dispute resolution process. It gives speedy justice and is a cost-effective way of resolving disputes. Due to the flexibility, many people all over the world are choosing arbitration. According to ICC records, there has been a significant rise in the number of arbitration cases since 2016. Out of 946 registered cases, 929 parties chose arbitrators in 2020.
Such contracts under International commercial arbitration clearly state that arbitration is the only process to follow when a conflict arises between parties. International arbitration is a blend of civil law, and common law to allow parties to design the arbitral process. Under which disputes parties solve disputes amicably. Many companies nowadays include international arbitration agreements with businesses in their commercial contracts to resolve disputes if they arise at any point in time.
Investment arbitration has been growing in recent years as it is a procedure that resolves disputes between foreign parties. According to LCIA 2020 casework report, it has handled a record number of cases even in COVID -19 pandemic, marking an 18% increase from 2019. It indicates that arbitration is one of the most preferred choices today that avoid litigation in national courts. The investment dispute resolution method gives access to a foreign investor to hire independent and qualified arbitrators to solve the issues. The investor and host state engage in negotiations to find an amicable solution to the concern issue. However, both foreign investors and the host state must give consent to the process.
This method of dispute resolution has gained popularity, and many professionals in international trade and businesses use this process to resolve their disputes. It offers flexibility and high-quality decisions better for both parties compared to court proceedings.
Why Do You Need International Dispute Resolution?
- Recognition- One of the key advantages of international arbitration is that over 140 countries in the world recognize judgment passed by an arbitrator. The decision by an arbitrator is recognized in many countries today.
- Freedom – The parties involved in the dispute resolution international framework have the autonomy and freedom to decide the structure of the arbitration process. The people involved in the arbitration process have gained control of the cost and time to finish things.
- Flexibility – Court process takes time and is bound to follow the procedures set by the court. On the other hand, international arbitration offers a lot of flexibility to decide where and how the dispute proceedings will occur and get resolved. Both parties with mutual decisions in many areas of arbitration take the final call.
- Unbiased- People think national courts can be partial when handling disputes involving two parties or when it comes to resolving cross-border disputes. International arbitration provides not only speedy justice but is unbiased. It does not favour any person and listens to both the parties involved in the process.
- Privacy – The parties involved in the arbitration have the right to maintain the secrecy and integrity of their dispute. The final decision of the arbitration proceedings is kept as a secret between parties involved in the process and will not be available to the public.
Conclusion
It is not wrong to say that international commercial arbitration proceedings are the most convenient and evolved techniques of dispute resolution. It can resolve issues between parties in an arranged way, giving a break from usual court proceedings and legal systems.
If you find yourself in a legal dispute and require a professional arbitrator, you can get personalized service. We can help resolve your legal matters most efficiently. So, contact us today.