Challenges of International Commercial Arbitration

Introduction1

Literature Review2

Use of Arbitration for Solving International Commercial Disputes2

Significance of Arbitral Proceedings3

Confidentiality and Subjects7

Confidentiality and Objects8

Confidentiality Principle made on Legal Basis9

Obligations of Confidentiality11

Protecting Confidential Information or Policy of Public Interest15

Conclusion17

Bibliography19

International Commercial Arbitration

Introduction

The means of solving disputes of business between two or more parties is known as commercial arbitration and these disputes are solved outside the formal court system. In general, operations of arbitration are similar to a court trial even though commercial arbitration is not as formal comparing with formal courts. The panel of arbitrators normally serves as both jury and judge and each company involved typically represented by a lawyer of arbitration who presents case of the company to arbitrator. After all the evidence is reviewed, decision is rendered by arbitrator for the case. The entities who are involved in this dispute of business should agree to commercial arbitration and it is also known as business arbitration, as a way for resolving the disagreement. It is normally performed by including clause of arbitration in general business contracts of the parties.

The clauses of contract arbitration varies to a great extent for example, it can be agreed by parties for making commercial arbitration voluntary or mandatory. When there is mandatory arbitration, then it is must that parties utilize it as mean to resolve disagreement whereas on the other hand, voluntary arbitration is optional and parties do not need to use arbitration for resolving a specific dispute. For instance, they can resolve the case by mediation or with help of court system. Because of its inherited confidentiality, arbitration is worldwide used for settling international commercial disputes, but expedient part of confidentiality is meeting challenges that are mostly owe to interest of public or for other reasons. This paper will not only discuss various confidentiality grounds in arbitration, but it will also explain challenges that have been faced by confidentiality during different international commercial arbitration cases all over the world.

Literature Review

International Commercial Arbitration is a system that allows corporations from different backgrounds to opt for private extra-judicial means to resolve their international business disputes. The disputing parties present their arguments and evidence to an established arbitration centre, where one arbitrator or a panel of arbitrators makes a decision (an 'award') which is enforceable. International Commercial Arbitration was proposed as an alternative to litigation (the conduct of a civil action in a court of law) by the United Nations (UN) and adopted by almost every country in the world. It has its own principles, rules and decision-making procedures with clear advantages over litigation, among which one of the most frequently claimed has been its private character and confidentiality of the proceedings. This article is concerned with the challenges of International Commercial Arbitration and its effects on this professional practice.

Use of Arbitration for Solving International Commercial Disputes

The most basic principle is judicial presumption in favor of disputed arbitration, in the contract litigation. It has been observed that courts of arbitration are more economical and expedient as compared to litigations in ...