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New Approaches to the Resolution of International Commercial Disputes

NCJ Number
L Perlman; S C Nelson
Date Published
81 pages
This article addresses commercial disputes between business entities and identifies the need for alternatives to conventional remedies in such situations.
Problems common to domestic and international disputes are considered, including the diversion of energies to noncentral issues, the lack of management involvement, delays due to court congestion, and the high costs. The advantages and disadvantages of alternative avenues offered by international commercial arbitration are examined. For example, because of differences in the substantive laws, public policies, and procedures in force in various countries, each party to a dispute may perceive material advantage in the selection of one available forum over another. Because there are no internationally accepted rules governing the exercise of jurisdiction by national courts, a given international dispute may fall within the competency of the courts of more than one country. Additionally, the difficulty of obtaining recognition and enforcement of foreign judgments creates still another opportunity for the underlying dispute to be prolonged rather than resolved. Some alternative methods of dispute resolution are considered; objectives of these methods, including management participation and encouragement of free dialogue, are summarized. Problems that may arise as a result of problems under national laws are identified, and the relationship between some of the alternative procedures and the operation of an arbitration agreement is discussed. Finally, provisions common to all types of alternative procedures are noted, and some institutional improvements which should be considered are identified. Included are 102 references.