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Trends in International Construction Arbitration

International arbitration is a transnational dispute typically involving disputes between parties from different nations often performing work in yet another nation. A UK contractor constructing a ore processing facility in a sub-Saharan African nation on behalf of a Canadian minerals company, files a claim for UK£1.45 million and seeks arbitration when the project owner refuses to settle is a an example of an international arbitration. As the world’s economy has become more globalized, more corporations are working internationally. Over the past two to three decades disputes on construction projects have become larger, more complicated and more common. Research indicates that arbitration is the preferred dispute resolution mechanism for international corporations rather than transnational litigation. As the number of arbitration case filings has increased so has the number of arbitral institutions (which now number at least 28) and the seats of arbitration. Perhaps in reaction to growing criticism of the process, there has been and continues to be other changes concerning international arbitration.

Among the topics covered in this 90-minute webinar include current trends concerning international construction arbitration including:
  • Corporate dispute resolution policies favor arbitration;
  • Virtually all arbitral institutions report a growth in case filings year after year;
  • In-house legal counsel do not use retained legal counsel but seek specialized counsel;
  • In-house legal counsel are remarkably consistent on top influences for selecting arbitrators;
  • In-house counsel are also consistent on their choice of governing law;
  • Despite 28 arbitral institutions globally, 3 dominate the field;
  • There are two favored seats of arbitration but some regional centers are gaining in popularity;
  • International arbitration is no longer faster or cheaper than litigation;
  • A high percentage of disputes are settled prior to issuance of an arbitral award;
  • Very few participants have to appeal an award for judicial enforcement;
  • A majority of international corporations would grade and report on arbitrator performance; and
  • Confidentiality of arbitration remains one of the strongest selling points for arbitration.
This webinar will also discuss some developing tends which have the potential to change the face of international arbitration including:
  • A growth in appellate rights;
  • A tendency to expand discovery rights;
  • A trend toward informal or interim dispute resolution measures;
  • A growing use of new methods to expedite proceedings;
  • Renunciation of international arbitration conventions by some nations; and
  • International arbitration is now a marketplace with specialists and some moves toward external regulation.