As per experts of international business law Alberta, arbitration and mediation is the preferred means in conflict resolution.
The reason is because unlike litigation, arbitration and mediation can easily be used for trans-border, international disputes. Secondly, the awards of arbitration are easy to enforce unlike a court judgement. Thirdly, arbitration is a more flexible mechanism when it comes to finding out a compromise solution between different legal systems and rules. Lastly, English can be used as the language for the proceedings.
The growing significance of arbitration in recent years
With increasing globalization, businesses of all sizes now have a footprint across many countries. While one country serves as a manufacturing hub, another country serves as a pivot in the supply chain from where vital raw materials are sourced and a third country, serves as a key market for the finished foods.
Until a few years ago, it was only the large enterprises that were engaged in global trade, but now even small and medium sized enterprises are actively working across their national boundaries, thanks to the advancement of technology and use of next-gen collaboration tools.
For these companies, although arbitration is new, they can be educated, so that they are able to understand its usage in conflict resolution, and can decide about their options and what would work best in their situation, whether arbitration, or litigation.
Arbitration is the preferred option, but in order for it to be adopted as means of conflict resolution, it has to be agreed upon and accepted by both the parties and incorporated into the contract. This is the standard approach, because once a dispute has arisen, then both the parties are less likely to agree on arbitration.
Methodology of arbitration adopted by experts of international business law Alberta
Typically speaking, whenever there is a conflict, experts in international business law Alberta recommend to their clients to we try to find an alternative way to resolve the dispute, such as negotiations or mediation.
The reason is because any formal proceeding, whether it be arbitration or litigation will require a firm investment, not only in monetary terms, but also in terms of the time of the client’s internal manpower that would need to be made available to address specific matters of the conflict.
In case a quick commercial solution does not seem possible, then experts of international business law Alberta make use of the arbitration option.
In this approach, a series of strategic decisions need to be taken for which the key is efficiency. Together with their client experts of international business law constitute a team to determine the goals of the client and come up with a budget. The most important issues are identified and a strategy is prepared to achieve these goals.
Additionally, the experts consult with their clients in order to understand the strengths and weaknesses of the case and to assess the status and condition of documentary evidence – in what form is it currently, whether it is sufficient or not, and whether documentary evidence from the other party is also required, or not. Sometimes interim relief is sought from the courts, and this could be another factor.
International business law Alberta facilitates the implementation of arbitration and mediation in international disputes between global businesses. A well-organized system of mediation proves beneficial not only in putting an end to the dispute and thus saving costs for both the parties, but also in salvaging the business relationship between them.
Another benefit is that it also allows both the parties to focus on business issues without having to take legal positions.