International Arbitration is an effective method to resolve the dispute out of the traditional local court. 97% of respondents support arbitration as the preferred method for cross-border disputes.

According to the user, the three most valuable characteristics of arbitration are –

• The enforceability of awards
• A neutral venue
• Flexibility

Given above are the important characteristics that usually attract people to choose the arbitration.

In case, a fundamental dispute occurs between the parties, then tiered dispute resolution provisions may simply be a waste of time. On the other hand, if the parties’ positions are not yet crystallized, then negotiations and settlement may be beneficial.

However, some parties mistakenly believe that arbitration lawyers will strive only to meet their mandate. This is untrue in litigation and in arbitration and it should be rectified through users’ counsel.

Cost – A Primary Concern

Cost remains by far the least popular feature of arbitration. Institutions such as the ICC and ICDR have updated their rules on expedited proceedings, but cost remains a Primary Concern.

Even some cases may suffer from rudimentary clauses that did not match a case’s unique circumstances, or enforcement may prolong the process. One critical problem, however, may lie in the procedure. As the primary cost component of arbitration is legal fees, however, striking a good bargain with external legal counsel is also warranted.

Future of arbitration

Respondents believe that arbitration will grow in key areas, such as energy, construction, technology (such as blockchain) and banking.

Definitely, there will be further growth of arbitration where the users can take advantage of new technologies. For instance, incorporating the use of cloud-based storage and virtual hearing rooms would limit costs on parties and avoid logistical issues such as visas and bookings.

This optimism has spilled over into investment cases, with 66% of respondents believing that investor-State disputes will increase in number.

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