Introduction
In the realm of international trade, arbitration is a very necessary and important mechanism which helps to settle disputes outside the traditional court system. This blog post details the sequential process of international commercial arbitration, from the arbitration agreement to enforcing the award.
1. The Arbitration Agreement
In an arbitration process, the very first thing anchor is the arbitration agreement. Arbitration is impossible without this agreement. It can be concluded prior to the dispute in the form of a "pre-dispute" contract, or it can be made after the dispute is in existence on a "post-dispute" basis. It is important to note that this agreement needs to be in writing whereas oral agreements and conduct-based estoppel are a few of the agreements under the international principles.
2. Appointment of Arbitrators
Arbitrators are the main performers of this arbitration process. The party\'s autonomy is generally respected in the selection of arbiters. In the process, the following must be included:
Number of Arbitrators: Depending on the level of complexity of the case, parties may decide to use a single or multiple arbitrators in an arbitration tribunal.
Method of Selection: It can be based on institutional rules or mutually agreed methods. For instance, the parties can nominate co-arbitrators, some of whom may later select the presiding arbitrator.
The downside of Arbitrating: If there exists a problem of the arbitrator being relatives or not being impartial then parties are free and they can issue a challenge under the corresponding institutional rules such as in the ICC\'s case.
3. Arbitration Proceedings
Arbitration proceedings typically start with a demand that is given to the arbitration institution by the claimant. The most common being the International Chamber of Commerce (ICC). The main steps are:
Request for Arbitration: It is a description of the dispute and the kind of help that the claimant is seeking as the starter, which is provided by the party who files the notice of motion.
Answer to the Request: The respondent comes up with an answer, and most often, the respondent raises some preliminary issues.
Preliminary Meetings and Terms of Reference (TOR): a. Parties decide on the procedural mechanics, including the schedule, rules of procedure precedence, and the field of arbitration are the segment consulting agreements.
Statement of Claim and Defense:alleging and defending factors of legal disputes, these are called the parties' exhibits, which should be hidden by the respective evidence or testimony of the parties.
4. The Hearing Process
The hearing proceeds through three stages: evidence is presented, witnesses are examined, and the other parties are cross-examined. According to this, the hearing includes:
Opening Statements:Parties provide a summary of the principal reasons that will dictate the outcome of their cases.
Presentation of Evidence: The documents, the testimonies of the witnesses, and the expert reports are turned in.
Cross-Examination: Each of the parties questions the other party's witnesses in order to check the truth of their claims and evidence, without double-crossing.
Closing Statements: The lawyer wraps up the case and once again makes a verbal declaration of those points.
5. The Arbitration Award
The arbitrators get together to discuss the case further and finally, the arbitration award is given. This particular award is:
Final and Binding: The award is absolutely final and can be made to work.
Reasoned: The arbitrators include a comprehensive description in their decision, explaining the facts and the grounds on the law involved.
6. Enforcement of the Award
Enforcement is the ultimate action that the winning party has to take to make the award a reality. The heart of the matter lies within the following:
New York Convention: This is an international treaty that apart from 125 countries handles the acceptance and execution of foreign arbitration decisions in more than 125 countries worldwide.
National Laws: In addition to this, the enforcement procedures of arbitration awards are also governed by the national laws of the state where enforcement is sought.
Challenges and Appeals:Limited grounds exist for challenging an award such as the occurrence of procedural irregularities or those that violate public policy.
Conclusion
International commercial arbitration is a well-structured and highly adaptable process to settle disputes promptly and in a fair way. Learning the process thoroughly from the arbitration deal to the enforcement of the award brings out efficiency and ends uncertainty for the parties. If you are a lawyer, company, or law student, the right steps for resolving disputes in the global market are non-negotiable for you.
0 Comments