THE IMPORTANCE OF INCLUDING ARBITRATION AGREEMENTS IN LARGE INTERNATIONAL TRANSACTIONS
CD: In your opinion, why does arbitration lend itself to resolving the kind of disputes that often arise from large international transactions? What are some of the common types of such disputes in the current market?
Tuchmann: There are two main reasons that parties to large international transactions prefer arbitration. First, the parties maintain substantial control over the most important elements of the arbitration process, including the selection of arbitrators with backgrounds and experience that are best suited to the case. That might be a lawyer with expertise in joint ventures, intellectual property or construction, or it may also be an accountant depending on the issues in dispute. Parties can also select a hearing location, choice of law and control over how long the arbitration process will last. Second, arbitration provides parties with predictable outcomes and enforceable arbitration awards, largely because of the New York Convention which allows for the enforcement of foreign arbitration awards in the courts of the 157 countries that have ratified the Convention.
Oct-Dec 2017 issue
American Arbitration Association