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Methods for Resolving International Commercial Disputes - Coggle Diagram
Methods for Resolving International Commercial Disputes
Mediation
Parties agree to am impartial mediator
Advantages
Process is Private
Cheaper than other options
Disadvantages
No binding decision is made
Parties are not required to engage since the process is voluntary
Arbitration
Formalized out of court process of getting a binding decision made
Pros
Arbitrators decision is final and binding
Process is cheaper than litigation
Process is private
Parties cannot withdraw from arbitration once agreed to
Arbitrator may be choosen
Most courts recognize and uphold
arbitration outcomes
Cons
Still pretty expensive but cheaper than litigation
Limited right to appeal
Limited discovery
Limited rights to approach courts
Relies on the court system for enforcement so requires court backing
Many contract have an arbitration clause requiring disputes to go to arbitration instead of litigation
Litigation
Formal process where a case between two parties is heard in a court
Court needs to have jurisdiction over the case for the decision to be binding
Jurisdiction is power of a court to hear and decide a case
Court that has jurisdiction is said to be the competent court
Different Type of Jurisdiction Exist
Territorial
In Rem
Subject Matter
Based on the type of case
Jurisdiction over property in an area
Criminal Court
Advantages
Decision is final although can be appealed in some cases
Decision can be enforced
More extensive discovery process
Disadvantages
Process is very expensive
Process can be very public and damage brand reputation