AN ECONOMIC STUDY OF THE SIZE OF THE ARBITRATION SECTOR IN TORONTO
In recent years, a small number of cities around the globe have become known as venues for commercial arbitrations. These cities – which include New York, Paris, London, Geneva, Hong Kong, Singapore, and Sydney – host resources and assets valued by parties contemplating international or domestic arbitrations, including appropriate hearing facilities, availability of qualified arbitrators, neutrality, supportive courts, geographical convenience, and amenities for visitors. Arbitration activity also tends to benefit from a positive feedback effect – experienced arbitration practitioners and supporting professionals are more likely to gather and locate around cities that host arbitrations while companies are more likely to choose cities that have access to such arbitration practitioners and supporting professionals as arbitration venues.
Arbitrations generate a variety of accompanying economic activity to the city. Proceedings may use local counsel, experts, and arbitrators, bringing benefits to that professional services community. Additionally, proceedings use nearby legal support services and venues. Counsel and arbitrators from outside the area are likely to visit for international arbitrations, bringing benefits to the hotel and hospitality industry. In total, the potential impact on the economy of the selected city can be significant; moreover, it does not necessarily accrue only to businesses and individuals in the legal industry.
Oct-Dec 2013 issue
Charles River Associates (CRA)