International commercial disputes

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International commercial disputes require consideration of jurisdiction, applicable law and the mechanism for executing decisions. KDpartners specialists provide comprehensive support for arbitrations and court proceedings involving foreign counterparties.

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FAQ

Is it possible to enter into an arbitration agreement after a dispute has arisen?

Yes, it is possible to conclude a separate agreement to refer an already existing dispute to arbitration.

What if the arbitration award is made in a country that is not a party to the New York Convention?

In such a case, its execution is possible only in accordance with the national legislation of the state where it is presented for execution.

Is it possible to simultaneously file a claim in arbitration and in state court?

No. If there is a valid arbitration agreement, the state court is obliged to dismiss the case.

What needs to be done to protect interests?

Recommended:

it is necessary to formulate an arbitration and legal clause;
determine the place of fulfillment of obligations;
identify the location of the counterparty's assets;
provide for security measures and a procedure for exchanging documents.

Is it possible to challenge an arbitration award if it seems unfair?

Yes, but the grounds for challenging an arbitration award are limited. Under the New York Convention of 1958, an award may be challenged if the arbitration agreement is invalid, a party's procedural rights have been violated (e.g., failure to provide notice of the proceedings), the tribunal has exceeded its powers, or the award is contrary to public policy. A subjective perception of unfairness is not a sufficient ground.

How to choose a suitable arbitration institution to resolve a dispute?

The choice depends on the specifics of the dispute and the interests of the parties. Often, the ICC (Paris) is chosen for complex transnational contracts, SIAC (Singapore) for Asian transactions, and the ICAC at the RF CCI for disputes with a Russian element. It is important to consider the reputation of the institution, the language of the proceedings, the cost and the applicable law, and to provide for this in the arbitration clause.

What to do if a foreign counterparty evades enforcement of a court decision?

If the award is made by a foreign court, it may be enforced in the jurisdiction where the counterparty's assets are located, if there is an international treaty on legal assistance or the principle of reciprocity. For arbitration awards, the New York Convention applies. It is also possible to turn to third jurisdictions or initiate collection procedures through related companies.

Can mediation be used to resolve an international commercial dispute?

Yes, mediation is an effective way to resolve disputes, especially if the parties want to maintain business relations. It is regulated, for example, by the Singapore Convention 2018, which ensures the enforcement of settlement agreements in participating countries. Mediation allows the parties to work out a solution themselves with the help of a neutral mediator, saving time and costs.

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