Chapter § 8.01 Introduction2

• Jurisdiction: United States
• Publication year: 2020

§ 8.01 Introduction²

Traditionally, arbitration has been lauded as a faster and lower-cost alternative to litigation. This is not necessarily the case now: as arbitration, and particularly international arbitration, has evolved into a means of resolving the most complicated of disputes, it can sometimes rival litigation in cost and time. Nonetheless, arbitration offers benefits distinct from litigation—ranging from the relative ease of enforcing arbitral awards in foreign states to the ability to craft a dispute resolution process specific to the dispute at hand. As a result, and as evidenced by its growing use in resolving complex disputes, arbitration has developed into the preferred means of resolving many types of disputes, particularly those arising out of cross-border transactions.

Because arbitration provides parties flexibility to cater the arbitral process to a particular dispute, careful management of the arbitration directly translates into a more efficient dispute resolution process. Such management must begin before a dispute even arises, during the negotiation of the arbitration agreement. It extends through the arbitral process, when the complexity and value of the dispute should inform the procedure, including the number of briefs, scope of discovery, and conduct of the hearing.

This chapter focuses on aspects of arbitration that, when carefully analyzed and managed, will assist in maintaining a cost-effective and efficient process. In doing so, it largely addresses international commercial arbitration. Nonetheless...