International Commercial Arbitration or National Court

where to protect your business?

Fundamental Differences:

International Arbitration

The mechanism of resolving international commercial disputes that is agreed upon by the parties in an international contract

Public Court

A government body that dispenses justice in accordance with the procedural order established by the law of a specific country

1. Legal Framework

The UNCITRAL Model Law

The UNCITRAL Model Law on International Commercial Arbitration that many U.N. member states incorporate in their national legal frameworks, thus bringing about harmonization of standards regulating international arbitration (for example, in Russia, Law No. 5338-1 of the Russian Federation "On International Commercial Arbitration", dated 07.07.1993). Model Law provisions reflect the current pro-arbitration legal structure

National Law

Varies depending on which legal framework it belongs to. As a general rule, a dispute or a party in a dispute must have a connection with the country where the court is located. As a result, one of the parties may have the "home field" advantage and may be viewed with prejudice.

2. Procedure

Rules of Arbitration Institutes

Procedural rules are established independently by international arbitration centres. That said, they are based on the Rules of Arbitration developed by UNCITRAL.
Similarities in the procedure make possible a virtually identical understanding of the rules of international arbitration proceedings everywhere in the world. The parties have the right to adjust procedural standards with respect to a specific dispute

National Procedural Law

Public courts apply national procedural codes or laws. They cannot be adjusted to fit specific cases upon the expressed will of the parties.

3. Enforcement of the Decision

Arbitral Award

Implemented in accordance with the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). 167 out of 193 countries are parties to the Convention, which allows for the recognition and enforcement of an arbitral award in any one of them.

National Court Decision

Possible only in the country where the decision was rendered. The other party may secure recognition of the court's decision provided there is a bilateral agreement between the countries, which is quite rare.

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Contact information
Telegram: @AlexDolya
Attorney registration number 77/10346 in the register of attorneys of the city of Moscow