ARBITRATION POST-PANDEMIC
As a result of the coronavirus (COVID-19) crisis, it seems inevitable that the number of commercial disputes will spike. Disputes related to M&A, construction and employment, to name a few, have already increased.
“When the restrictions associated with the pandemic were first initiated, we saw a variety of responses from parties,” says Myfanwy Wood, a partner at Ashurst. “The responses depended, in large part, on the particular circumstance of a party and the relative importance of their dispute. Some parties sought to delay deadlines and essentially pause their ongoing disputes in order to assess the impact of COVID-19, or to wait until the restrictions had passed. Others, however, did not see the restrictions as a valid impediment to delaying their proceedings and, therefore, pushed back on any attempt to delay.”
In this environment, arbitration has proved itself to be agile, adaptable and resilient. Arbitrations have continued during the crisis not just because of the scope for contentious situations to arise due to the pandemic, but also because some court processes have been scaled back or ground to a halt. The International Chamber of Commerce (ICC) International Court of Arbitration reported a strong year in 2020 with 946 new cases, of which 929 were requested under its own rules, the highest figure to date.
Apr-Jun 2021 issue
Richard Summerfield