International Commercial Arbitration

The concept of international commercial arbitration

International commercial arbitration should be understood as an independent dispute resolution institution to which the parties apply on the basis of a concluded arbitration agreement (by means of free will). The specified institution is called upon to consider disputes arising from international commercial relations, which have all the following features:

• firstly, they are characterized by an international nature (arises between parties located in different states, the agreement is performed on the territory of another state, etc.);
• secondly, they arise from commercial relations (purchase and sale of goods, provision of services, attraction of investments, etc.);
• thirdly, the parties voluntarily agree to the application (usually by including a corresponding clause in a previously concluded contract).

International commercial arbitration provides confidential proceedings, which have greater flexibility in the choice of procedure than in state courts. It must meet the standards of the New York Convention. Arbitration is conducted in one of the ways provided for by current national legislation (see the Law of Ukraine “On International Commercial Arbitration”):

1. under the auspices of a permanent state institution;
2. by issuing a decision for consideration by a specially created arbitration court.

You can learn more about the features of international commercial arbitration by seeking legal advice.

What disputes does international commercial arbitration consider?

This independent institution considers a wide range of disputes arising from international commercial relations. They can be conditionally divided into the following categories:

• disputes considered by the International Commercial Arbitration Court - in the field of foreign trade, foreign investments, bond disposal, etc.;
• disputes that have been referred to the Maritime Arbitration Commission for consideration - on maritime trade, cargo transportation, maritime operations, ship maintenance, fishing, etc.

The disputes listed above can also include those involving conflicts between the parties to intellectual property license agreements, construction contracts.

Enforcement of an international commercial arbitration award: key points

Enforcement of the award is the final and extremely important stage of the arbitration process. This procedure provides for the completion of mandatory stages in accordance with applicable national legislation. First, the parties must apply to a court of general jurisdiction to initiate the process of such enforcement (obtain an appropriate ruling). Second, apply to the enforcement authorities for the enforcement of the arbitration award.

To successfully complete all the necessary procedures, it is not only necessary to have with you the arbitration agreement, the international commercial arbitration award and other documents stipulated by law. It is also important to check whether there are any conditions that may be the reason for refusing to enforce such an award. In particular, according to Article 36 of the Law of Ukraine “On International Commercial Arbitration”, such reasons may be:

1. invalidity of the arbitration agreement on the basis of the incapacity of one of the parties;
2. violation of procedural law regarding the conduct of the arbitration proceedings (the party was not properly notified of the arbitration; the composition of the international arbitration court or the procedure did not correspond to the agreement of the parties, etc.);
3. the arbitration award goes beyond the scope of the agreement itself.

Procedure for filing an international commercial arbitration: procedure and features

A filing for international commercial arbitration is carried out by preparing a statement of claim that meets the requirements established by law. In particular, the claimant submits to the relevant institution or directly to the arbitrators a statement of claim for arbitration, in which he sets out the essence of the dispute, his claims and evidence, and the Respondent has the right to file a response to the claim, setting out his objections. After filing the claim, the selection of arbitrators (by the parties or the relevant institution), a hearing on the case (presentation of their arguments and evidence by the parties), preparation and submission of an arbitration award, which is binding on the parties, must also be carried out in due order. You can learn about other features of filing a claim for international commercial arbitration by contacting a specialized lawyer of the company “Prikhodko & Partners” for professional advice.

Thus, international commercial arbitration is an effective and flexible mechanism for resolving disputes. It deals with a wide range of disputes, including contractual, investment, maritime and intellectual property disputes, etc. The enforcement of the arbitration award is carried out through national courts in accordance with the legislation of Ukraine. It is also important to consider that the arbitration process has its own characteristics, which requires the involvement of qualified lawyers.