​What to Consider When Initiating International Arbitration

What to Consider When Initiating International Arbitration
Venue:
When initiating international arbitration, the first step is to choose a venue - the country or other location where the arbitration will occur. There are several factors to consider when selecting a venue, such as the local laws, the availability of arbitrators and the costs of arbitration. The choice of venue can also significantly impact the outcome of the arbitration.
 
Choice of Law:
The governing law for international arbitration is also an important consideration. Various factors need to be taken into account when choosing the governing law, such as whether the legal system will recognize and enforce the arbitration agreement and award, the risk of the courts refusing to enforce an arbitration agreement or award if they believe the arbitration proceedings were not fair, and the importance of choosing a governing law that is neutral and familiar to both parties. The law governing international arbitration can significantly impact the outcome of the proceedings.
 
Arbitral Tribunal:
The arbitral tribunal is the body that hears and decides on international arbitration cases. It comprises three arbitrators, one chosen by each party to the dispute and a third selected by the two arbitrators. The tribunal can rule on its jurisdiction, including any objections concerning the arbitration agreement's existence, scope, or validity. The tribunal may conduct the arbitration as it considers appropriate and must reach its decision by the law specified by the parties.
 
Costs:
The costs of international arbitration can vary depending on several factors, such as the venue, choice of law, arbitral tribunal, and the relief sought. Filing fees are usually the first cost incurred in international arbitration. Administrative costs, such as court fees, fees charged by the arbitral institution, and other expenses incurred with the arbitration proceedings, are typically the second highest cost. Arbitrators' and attorneys' fees are also significant costs associated with international arbitration.
 
Relief:
Different types of relief may be available in international arbitration, such as damages, injunctions, and specific performance. The conditions for granting relief vary depending on the type of relief sought. For example, damages may be awarded if the claimant can prove they suffered a loss due to the respondent's actions. Injunctions may be granted if the claimant can show that the respondent is likely to cause them irreparable harm. Specific performance may be ordered if the claimant can demonstrate that monetary damages would not be an adequate remedy. The benefits of relief in international arbitration include the possibility of receiving compensation for losses suffered, preventing future harm, and obtaining specific performance of a contract. The drawbacks of relief in international arbitration include
the possibility of an unfavorable outcome,
the high cost of proceedings, and
the time-consuming nature of the arbitration.
 
Overall, the text provides a comprehensive overview of what to consider when initiating international arbitration, including the choice of venue and law, the composition and authority of the arbitral tribunal, the costs involved, and the types of relief available.