STRATEGIES TO MAXIMISE THE EFFICIENCY OF COMPLEX INTERNATIONAL ARBITRATIONS
International arbitrations are material investments that can engender significant value for users by providing an effective mechanism for the enforcement of valuable rights. How arbitrations are managed at a practical and procedural level can have real impact on the value that is obtained and on the burden they impose on in-house counsel and their internal clients.
In-house counsel have a central role to play in international arbitrations. They can take, in close collaboration with external counsel, important steps – at the outset and throughout the duration of an arbitration – to maximise the efficiency of the process.
Focusing on key issues before a dispute arises and throughout the life cycle of an arbitration, we highlight below some of the steps that can be taken to reduce the time and costs necessary to achieve a successful result in complex international arbitrations.
Drafting an effective arbitration clause
The first step that in-house counsel can take to maximise the efficiency of international arbitration is to give careful thought to the drafting of the arbitration agreement at the stage of the negotiation of the relevant contract. Ultimately, a party’s substantive rights under a contract are only as good as its ability to enforce them. A well-drafted arbitration clause can avoid ambiguities and unintended inconsistencies that may be exploited by an obstructive counterparty (including through an attack on the very validity of the arbitration agreement), and is therefore critical to avoiding unnecessary costs and delays once a dispute arises.
Jan-Mar 2021 issue
Three Crowns