Why is the International Commercial Arbitration System Favored Option?

International Commercial Arbitration System is a way of dispute resolution where disputing parties agree to put forward their disputes. In front of a private arbitrator instead of a national court. Also, in most cross-border dealings, this approach gets the first preference. As it offers all the concerned parties a neutral platform. Along with that awards are easier to implement in comparison to court judgements. And on top of that, disputing parties get to choose the arbitrator.

Disputing Parties Must Have a Common View on Arbitration

This way of dispute resolution works only in the case when both parties agree to arbitrate. And the most common way they achieve this is by introducing an arbitration clause in their commercial agreements. Besides, in case they miss this opportunity then they can correct this mistake by agreeing to submit the dispute to arbitration after it has risen, also called by the name: Submission agreement.

International Commercial Arbitration System

Key Benefits of the International Commercial Arbitration System


1. Ease of Enforceability

One of the primary benefits of international arbitration over litigation is that in most nations. International arbitration awards are easier to enforce in comparison to foreign court judgments. Also, more than 170 nations on this earth have approved the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (alternate name: The New York Convention). A multilateral treaty for the acceptance and administration of international arbitration agreements & awards. Furthermore, under the New York Convention, non-domestic arbitral awards are applicable in any of the ratifying states subject to specific narrow exceptions.

2. Confidentiality and Privacy

Also, unlike as is common with most court filings. Submissions, rulings, and orders issued by an international arbitral tribunal are kept out of the reach of the general public. They are only available to the disputing parties. On top of that, the general public has no access to public hearings. Further, subject to the nod by parties the existence and content of the arbitration can be kept confidential infinitely.

3. Selection of Arbitrators

Additionally, this approach of dispute resolution offers parties the advantage of specifying the credentials of arbitrators in their arbitration clause. Like expertise in a specific area of the law, industry, or subject area. Or otherwise, certain arbitrators with the background or expertise they believe is crucial to the rightful resolution of the case.

Contribution of Civil Law System  

When we talk about the contribution of the civil law system towards the shaping of the International Commercial Arbitration System. The former has played a crucial role in shaping the former. Because the civil law system's focus on written law has made it a natural fit for international commercial arbitration. As a result, parties belonging to different legal systems (nations) must provide their nod on a set of rules. Before the beginning of the dispute resolution process namely construction arbitrations.

construction arbitrations


Additionally, a lot of international commercial arbitration institutions have their base in civil law nations. Namely the International Chamber of Commerce in Paris and the Arbitration Institute of the Stockholm Chamber of Commerce. Hence explaining the close relationship between civil law procedures and international commercial arbitration. And Rattsakuten’s infrastructure in Stockholm is of great help to parties, especially real estate MNCs who wish to hire a local representative for construction arbitrations.

Conclusion 

To sum it up, the International Commercial Arbitration System is a more lucrative option. As it offers both parties the benefit of a comparatively more fair and desirable procedure for dispute resolution. Additionally, this arbitration procedure gives more control to the parties. On top of that, there is a guaranteed advantage of “privacy and confidentiality” in the entire arbitration procedure.

Furthermore, disputing parties can get a solution to their disputes minus any bad publicity. Something common with disputes, especially in situations where high-profile cases are taken care of by litigation. So, to be precise it can be easily concluded that the International Commercial Arbitration System is no doubt a preferable method to deal with disputes in international transactions. And Rattsakuten is one such firm with its base in Stockholm carrying decades of expertise in offering these services.

Location: Sweden

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