Special Arbitration Tribunals

Special Arbitration Tribunals

Special Arbitration Tribunals are alternative dispute resolution mechanisms established to resolve specific types of disputes, particularly those arising from international trade, investment, or commercial contracts. These tribunals operate outside of traditional court systems and are designed to provide a faster, more flexible, and often more confidential way to settle disputes between parties.

Special Arbitration Tribunals are usually governed by rules set forth by an arbitration institution, such as the International Chamber of Commerce (ICC) or the London Court of International Arbitration (LCIA). The parties involved typically agree to arbitration in their contracts, specifying the tribunal’s jurisdiction, the applicable rules, and the location of the proceedings.

The procedure in these tribunals often includes the appointment of arbitrators, who are neutral third parties with expertise in the relevant area. The arbitration may include hearings, submission of evidence, and legal arguments, similar to court proceedings, but with more streamlined and less formal procedures.

One key feature of Special Arbitration Tribunals is their ability to render binding decisions, known as awards, which are enforceable in most jurisdictions under international treaties like the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. For example, if a U.S. company enters into a contract with a French company that includes an arbitration clause, and a dispute arises, the tribunal’s decision can be enforced in both the U.S. and France, provided both countries are signatories to the New York Convention.

In summary, Special Arbitration Tribunals offer a specialized, efficient, and effective means of resolving disputes, particularly in the context of international and commercial law, and are increasingly used by businesses and individuals seeking alternatives to litigation.