Arbitration is becoming the popular choice for most people worldwide for dispute resolution. Organizations and individuals prefer to settle things outside the court and behind closed doors by embracing alternative dispute resolution methods. And during uncertain times like now, when the pandemic is wreaking havoc, it is beneficial as a public court hearing system is not a feasible option.
The Evolving Space of ADR
The growing popularity of alternative dispute redressal in general and arbitration has paved the way for improvements in arbitration worldwide. This includes the freedom for the disputing parties to decide on the location, language, and the arbitrators while going dispute redressal.
When it comes to international trade, arbitration is the preferred method of dispute resolving over litigation, as it is easier and faster. It is also easier to grant an arbitral award than enforcing a court decision in a foreign State. Here are some of the most important arbitral destinations across the world.
Singapore and Hong Kong are some of the most developed regions in Asia. And one of the reasons for their successful economies is the ease of doing business in these regions. Most ventures tend to collapse when they need to resolve a dispute but do not have the right system in place.
However, Singapore is different in this case. It has a proper jurisdiction force, a pro-arbitration, and a business venture-friendly setup. In 2008, the International Court of Arbitration of the International Chamber of Commerce established its office in Singapore. And we could say that Singapore is giving tough competition to other thriving economies like London and Paris in terms of dispute redressal mechanisms.
According to a recent report, the number of arbitration cases filed at the SIAC (Singapore International Arbitration Center) has increased in recent years by over 300 percent. What makes Singapore an attractive arbitration destination is because it is favorable geographical location and trade links. The Business Inc., calls Singapore a favorable destination for arbitration reinforcement, as it has a favorable legislative environment.
Until recently, there were no legislative provisions for IPR arbitrations in Hong Kong. However, things are changing in the past few years. The Arbitration (Amendment) Bill 2016 brought in the big change.
And it incorporated a provision for the same in the Legislative Council on 14 December 2016. This introduced a new chapter that makes it possible to resolve IPR disputes over the arbitration. Yes, evaluating licenses is now a legal part of the arbitration process in Hong Kong. The new rules make it easy and flexible to resolve disputes through arbitration. Besides being flexible, it is also cost-effective and efficient in managing complex transactions.
London is a popular arbitration destination because of the English law and its common law traditions. The principle of the freedom of contract is a pro-business solution.
Arbitration in London offers several discretionary advantages, which adds to its popularity. Besides that, English Law, in general, attaches confidentiality when resolving arbitration disputes. Additionally, the legal professionals in London are knowledgeable and skillful professionals who are adept at handling various international matters. And it is said that most of the prestigious law firms are in London. London has been a center for international trade for several centuries now.
France has, in fact, one of the best legal systems favoring arbitration. And the statement especially holds in the case of international arbitration. The system has a strong foundation with the basics of various reforms and case law without the non-interference of French courts in the arbitration process.
The country is also the first choice for many international and European conventions. It aims to simplify the process of the enforcement of foreign arbitral awards. Except for difficult situations in France, to prevent arbitration proceedings or keeping aside an arbitral award. The arbitral awards enforcements are easy to carry out in France.
Logistically speaking, Paris provides all the amenities that make it one of the most favorable destinations for arbitration. This includes numerous hotels and conference centers. What’s more, it is near international hubs, airports, and stations where the various parties, counsels, arbitrators, court reporters, and interpreters meet up for arbitration cases. No wonder it is one of the top arbitration destinations for most delegates.
Some of the other nations that stop short of being one of the top arbitration nations lack the proper research and preparation to undergo arbitration. Suppose most of the governments of the also-ran countries are willing to work on the problems. In that case, those countries can certainly emerge as one of the leading targets for international arbitration.