Arbitration, Mediation and other forms of Alternative dispute resolution (ADR) give parties to commercial contracts the ability to design their own dispute resolution process, and provide them with the flexibility to customize the process to their particular circumstances.
Parties to international contracts may be naturally uncomfortable with the thought of having to enforce their contract in the national courts of their counter-party. International arbitration and mediation provides contracting parties with an internationally acceptable, fair procedural framework for dispute resolution.
Perhaps even more important is the area of enforcement of an arbitration award. Thanks to wide acceptance of an international treaty (The NY Convention) for transnational enforcement of commercial arbitration decisions (“awards”), there is wide acceptance of the concept of expeditious enforcement of international arbitration awards in local courts.
Parties to international commercial contracts increasingly choose institutional, administered arbitration and mediation instead of party-managed ad hoc arbitration and mediation for a multitude of reasons including the following:
Incorporation of Internationally Accepted Procedural Norms by Reference
ICDR’s model short form clauses reference procedures which are flexible, respect international expectations of the process and include all the fundamental requirements for effective international arbitration and mediation including filing, costs, interim or emergency measures, appointment of the arbitral tribunal or mediator, scheduling, organization of the proceedings, the taking of evidence and award requirements.
Self-Executing Arbitration Process
ICDR arbitration commences with the service of a Notice of Arbitration. There is no need to seek an Order from a State Court. Moreover, the process is designed to proceed in the absence of a party who fails to respond or move forward at any stage of the process.
Ad hoc arbitration and mediation does not happen by itself. Why not have the case administered by a neutral case manager whose core competency is effective and efficient administration?
Costs Administration and Costs Control
In ICDR arbitration and mediation, the Administrator is interposed between the parties and the arbitral tribunal or mediator, collecting deposits on tribunal fees and expenses, and monitoring those fees and expenses in line with established policies.
The amount of time it takes to manage a dispute to its’ conclusion directly impacts time and costs. ICDR has built a global reputation for effective case management. ICDR Rules establish efficient deadlines around key aspects of the process including filings, the appointment of the Arbitral Tribunal or Mediator and the Time of Award. ICDR Administration focuses on frequent communication with the parties and Arbitral Tribunal or Mediator throughout the process.