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Advantages and Issues of Joint Venture Arbitration

Arbitration is a flexible and neutral method for resolving disputes allowing the parties to tailor the proceedings to their own needs and is increasingly becoming a popular method for the resolution of Joint Venture disputes.

There are many different types of disputes, which might arise at any stage of Joint venture cooperation – mismanagement and a failure to cooperate, profit sharing, defaults, breach of the Joint Venture Agreement or annexes, and more. Joint ventures are frequent and international which involves partners from different countries operating in various continents and involving multiple laws and jurisdictions. This led to a rising need for Joint Venture Disputes to be resolved in a more neutral setting than before national State courts of just one party.

We have listed below some of advantages and issues, which might arise in arbitrating joint venture disputes.

Advantages of arbitration

Arbitration is considered as the most suitable method of resolving disputes. There are many advantages of arbitration and some of them are given below –

  • The two inherent characteristics of international arbitration are neutrality and flexibility, giving the parties a vast freedom to agree upon the number of arbitrators, the nationalities of arbitrators, the applicable law or seat of arbitration, the language of arbitration, and more.
  • The possibility of choosing an arbitrator might be particularly relevant since the parties are allowed to choose someone who might have more experience and knowledge about a certain industry, sector or practice, or otherwise experience in a specific jurisdiction, which can be helpful in the context of joint venture disputes.

Issues of arbitration

There are certain specific issues, which might arise in joint venture arbitration, such as –

  • In many countries, the boundaries of arbitrability are being pushed further and further. It depends on the nature of the issue involved, but in general most joint venture disputes are arbitrable in most countries except for those involving matters considered to be highly sensitive such as labour law (which itself is arbitrable in some jurisdictions).
  • Issue which might arises, concerning the scope of arbitration agreement since, in some circumstances, specific joint venture arbitration clauses could be extended ratione materiae or ratione peronae.
  • A burning issue in international arbitration frequently arises in the context of joint venture disputes are so-called “multiparty arbitrations.” This is due to the fact that joint venture arbitrations usually involve not only all business partners or shareholders but also, in some instances, the joint venture company itself. It is important for joint venture stakeholders to bear in mind that that the joint venture company will possibly not be party to the arbitral proceedings, unless it was party to the arbitration clause or has subsequently joined.

Arbitration can be easily tailored to correspond to both parties’ needs and the increasing number of joint venture arbitrations. Are you looking for the international arbitration firm to resolve your disputes? If yes, then get in touch with Aceris Law LLC.

Aceris Law LLC is a leading international arbitration boutique that provides legal representation for commercial, construction and investment arbitrations in all jurisdictions. For more information, feel free to visit

This post first appeared on Three Things That Makes An International Arbitration Law Firm Reliable, please read the originial post: here

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Advantages and Issues of Joint Venture Arbitration


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