Arbitration and Litigation Essay Example | Topics and Well Written Essays - 2000 words

arbitrement and Litigation - Essay ExampleFirst, the legality that recognises and enforces the agreement of arbitrament. Then law that regulates actual arbitration procedure, abutting the specific law or rules that arbitral tribunal has to use in the matter and finally law for recognition and enforcement of the decision of arbitral tribunal, known as arbitration award. The laws governing arbitration proceedings may be same but it is not necessarily so always. Since most of the international arbitration show quad in a neutral country to which neither the arbitrating parties belong. So the law of the proceedings, as utilise to the matter of the case and known as substantive or applied law, may be contrary from the law of enforcement of the award. For example, an arbitral tribunal sitting in England will have English law for place of arbitration but may need to apply New York law as substantive law1.Compared to the courts of law, arbitration is a primitive way to resolve the iss ues which is simple because of less formality and expense. The person deciding the difference of opinion has the capability that he is accepted for arbitration by two parties.2 For example two merchants disputing over damage to their goods would fold to and accept the judgement of a third, fellow merchant. Actually such had been a community practice to keep back peace and harmony among members of business community3.Why International Arbitration The answer may come from the situation that sometimes national law is not sufficient to resolve disputes between warring parties. For e.g. A confederation based in USA contracts another in Germany. The contract is for setting up a index finger plant in Egypt with any disputes to be mediated in London. Now, if a dispute arises and one of the party refuses to arbitrate or the losing party refuses to carry out the award. No national law can resolve the dispute in such case and is an International treaty was necessary to link the nationa l laws and respecting the award (see write 1 p. 4). The international treaty to resolve international disputes is a result of Geneva protocols 1923 & 1927 and New York multitude 1958. The aim for such treaty was to remove all the short comings of law of courts, viz. It is to be lush while law is slow, it is to be inexpensive while law is costly, to be simple in communication channel to law which is technical and is peace maker in contrast to strife creator4.The present arbitral surgical extremity no longer has the simplicity of its beginning, it has incorporated somewhat more technical complexity which was needed to substantiate it to remove any loopholes leading to non acceptance of the award, particularly by the losing party. In the modern arbitral process the award is binding on both the parties and if it is not carried out voluntary by the losing party it would be enforced by the court at the expense of that party (See footnote. 1).The Arbitration Process The first look is selection of an arbitrator, which should be done carefully. Ideally the help of an arbitral institution is a good resource for