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The Limited Jurisdiction of International (Investment) Arbitral Tribunals - Research Paper Example

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This essay treats on arbitration, the dominant form of international dispute resolution, and the limited jurisdiction, or legal authority, of international arbitral tribunals. The researcher states that arbitration is the usual means of settling international disputes. …
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The Limited Jurisdiction of International (Investment) Arbitral Tribunals
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Download file to see previous pages The present research has identified that arbitration is an out-of-court procedure and is resorted to when parties are unable to arrive at an agreement of their own accord, and requires the intervention of a third party.  Should even this fail, then litigation is the next logical step, a measure most parties would prefer to forego because of the time and finances required to pursue court action. Most parties with a commercial dispute would prefer to subject their dispute to arbitration proceedings, for the following reasons: (1)  Arbitration, being a private process, does not generate the unwanted publicity a court case does, which high profile businesses would prefer to avoid; (2) Arbitration allows for parties to select their own arbitrator, or arbitrators, which is not possible in legal actions. The arbitrator, or arbitrators if more than one is chosen, may be selected for this skill and expertise in the particular legal field; (3) Arbitration proceedings, substance, and results are more flexible, and because it is so adaptable, it moves the process along more quickly and efficiently, and the outcome is acceptable to both parties, precluding a lengthy appeals process; (4) Arbitration fosters continuity. While regular tribunals handle several cases simultaneously, and the case moves through several tribunals through the appeals process, arbitrators usually attend to a case from its start to its final resolution. It must be kept in mind that arbitration agreements may allow dispute settlement based on extra-legal standards, and thus the arbitration tribunal tasked to decide the arbitration case does not operate as a regular court. Its authority is therefore conditioned upon the consent of the parties, and ends upon the resolution of the case. In order for a tribunal to be considered an international tribunal, “it must be created by states or international organizations which, though they may have international legal personalities of their own, are, nevertheless, composed principally of states.” Only states or international organization may create international tribunals. Tribunal members are called arbiters, and from them are chosen the individual or individuals who will hear the case and designate the award. ...Download file to see next pagesRead More
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