Speed, confidentiality, cost and enforceability — four questions that help decide where a commercial dispute should be heard.
Arbitration offers confidentiality and the ability to choose decision-makers with sector expertise. Litigation offers a public forum, the possibility of appeal and, in some cases, lower upfront cost.
The decision is usually made long before any dispute arises — in the dispute-resolution clause of the contract. A carefully drafted clause names the seat, the rules, the language and the number of arbitrators.
Where the counterparty holds assets abroad, enforceability matters most. Arbitral awards generally travel well between jurisdictions that are party to international conventions on recognition and enforcement.
And where the relationship is worth preserving, conciliation remains a valuable first step before either route.
