SETTLEMENT CULTURE IN ARBITRATION
CD: How are general counsels (GCs) recalibrating their dispute resolution strategies in light of growing settlement dynamics within international arbitration?
Burgstaller: In response to the growing trend toward settlement within international arbitration, general counsels (GCs) are capitalising on the benefits that early dispute settlement affords. Rather than defaulting to arbitration proceedings, which can often be lengthy and costly for a company, in addition to the potential impact that such proceedings may have on its commercial relationships, GCs are looking toward faster, more cost-effective resolutions to their disputes. In particular, GCs are prioritising early case management, allowing them to evaluate potential risks and outcomes of a dispute in its preliminary stages and the various alternative dispute resolution options which may be taken. Ultimately, a shift toward the prospects of settlement within GCs’ dispute resolution strategies prioritises timely and efficient resolutions to disputes focused on the particular goals and needs of the business.
CD: Do you believe international arbitration genuinely faces a ‘settlement problem’, or is this more a perception issue driven by cost and time concerns?
Burgstaller: Focusing on investor-state arbitration, it is noteworthy that in recent caseload statistics published by the International Centre for Settlement of Investment Disputes (ICSID), the leading forum for investor-state arbitration, ICSID noted that of investor-state arbitrations that had settled or had proceedings otherwise discontinued only 11 percent had resulted in a settlement agreement embodied in an award at the parties’ request.
Apr-Jun 2026 issue
Hogan Lovells