Arbitration is not exempt from one of the sine qua non rules of business: to be successful, you have to anticipate. And this is from the signing of the contract between the parties. The company must ensure that it will be in the best possible position to address a potential litigation in the life of the commercial relationship. The procedure to be followed in the event of disputes must therefore be strictly defined and the parties must place themselves under the aegis of recognized arbitration institutions. This precaution will make it possible to avoid deadlock situations, such as the sometimes dilatory actions of certain parties that the arbitrators will more easily defuse when they benefit from the support of experienced arbitration institutions.
If an arbitration procedure is initiated, the company must, with the help of experienced counsel, specify the arbitration lawyers, anticipate the opposing strategy, establish its own plan of attack well in advance, but also maintain a capacity to adaptation according to the attitude of the referees and the discoveries that will take place. Teamwork is the keystone to achieve the best possible result. Counsel should be involved as early as possible, and not just when the situation becomes complex or litigation inevitable. This mobilization will make it possible to initiate a much richer common reflection on the expectations of the various protagonists, the objectives to be achieved and the possibility of finding an amicable agreement at the appropriate time.
Choosing the right referees
In each case, it’s appropriate to hire an arbiter. Most often stakeholders in their choices, companies should not be mistaken based on the characteristics of their files. Between common and civil law, arbitrators have different legal cultures which are likely to influence the arbitration procedure. Certain arbitrators will, for example, be more or less open to discovery, to longer hearings, in Anglo-Saxon fashion, where questioning of lawyers can occupy a very important time of hearings. Depending on the strategy adopted and the issues involved, the parties will still have an interest, or not, in benefiting from a court favorable to the implementation of large document productions sometimes time-consuming and expensive, but sometimes fruitful or to a less cumbersome procedure and better suited to the nature of the dispute.
Keep the “business” aspect of the procedure
The parties must, in all cases, know how to take advantage of an arbitration procedure to ensure the smooth running of their business. At no time should they lose sight of the fact that its management is part of a much more global strategy which goes well beyond the success of a case. Arbitration is a means of resolving a specific difficulty and allowing the company to pursue its commercial strategy by securing, for example, the exercise of a right of control of a group by an investor It is absolutely necessary to move away from the strategy of litigation for litigation.
How Much Does Arbitration Cost?
Arbitration fees mainly include:
- Fees and expenses of arbitrators
- Possibly the administrative costs of the institution organizing the arbitration, and
- The costs of any witnesses and experts.
Although representation by a lawyer is not compulsory in arbitration, the parties often use a lawyer (it is therefore recommended to choose a lawyer with solid experience in arbitration, and not a generalist or a litigation lawyer. before state courts), which also generates additional costs (lawyers’ fees and expenses).
