In the case of cross-border legal relationships, the question may arise between the parties as to before which courts any legal disputes that may arise in the future should be heard. This can be regulated in the respective contracts by means of a corresponding clause.
In addition to the ordinary courts in the countries involved, so-called arbitration courts can also be considered for this regulation.
Arbitration tribunals are private courts that are part of out-of-court dispute resolution. The decision of an arbitration tribunal is binding for the parties.
The great advantage of arbitration is that the parties can largely choose their arbitrator and the rules of procedure themselves, or alternatively they can fall back on existing works of an arbitration institution.
Another advantage is the acceleration of proceedings, as arbitration proceedings are always concluded in a single instance. Although arbitration proceedings are generally more expensive than proceedings before the ordinary courts, the fact that they are limited to a single instance means that the costs can be planned.
In addition, the proceedings - unlike most court proceedings - can take place in private and therefore in camera. Accordingly, the arbitration awards are also only published if the parties agree.
Arbitration clauses can be particularly advantageous in cross-border cases outside the European Union, as the enforcement of ordinary court judgments in countries outside the EU is sometimes problematic. Arbitration awards, on the other hand, are also enforceable abroad to a much greater extent. A total of 172 countries have acceded to the "New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards".
Overall, arbitration tribunals therefore offer the parties a great deal of freedom with regard to the specific dispute resolution. The early decision in favor of an arbitration clause in the respective contracts serves to prevent later conflicts regarding the "how" of dispute resolution.
Author:
Dr. Dominic John Patrick Porta, LL.M.
Attorney at Law (Düsseldorf Bar Association n° 52954)
Abogado (ICAIB n° 6645)
dominic.porta@anwaltmallorca.eu
www.anwaltmallorca.eu
Do you need the support of a German lawyer in Mallorca?
Porta & Associates is a law firm in Palma de Mallorca. Dr. Dominic Porta advises you as a German lawyer in Mallorca on all matters relating to house purchase, rental and licenses. The modern law firm in Palma also represents its clients in corporate law, inheritance law, contract law and tax law.
More information and contact can be found at www.anwaltmallorca.eu
