International Commercial Arbitration - Coursework Example

Download file to see previous pages Ad hoc arbitration charges fees according to the complexity of the subject matter and the time spent by arbitrators relevant to the case, which is reasonable (UNCITRAL 1976, Art. 39:1). Furthermore, UNCITRAL provides an effective procedural framework regardless of where the arbitration will take place thus avoiding fess and expenses usually charged by the institutional arbitrator (Punwar 2007, p.2). (iv) is the bureaucratic nature of institutional arbitration that normally results in delays and added cost, and unrealistic period requirements burden due to eccentricities of conventional arbitration laws. Although experienced legal practitioners represent both types of arbitration, ad hoc is faster and more economical since it can limit the number of parties participating in the settlement of the dispute and more importantly, it is not subject to the rules of inadequately administered institutions with outmoded rules and excessively narrow-minded inventories of arbitrators (Punwar 2007, p.2).

Other Options Available Advantages and Disadvantages - There are other arbitrations options available to settle a commercial dispute local or international. Although some of them are profitable organizations, the majority are non-profit organizations with a charitable purposes. The ICC (International Chamber of Commerce) and the LCIA (The London Court of International Arbitration) are institutional arbitration organization offering dispute arbitration for a fee usually computed as a percentage of the amount in dispute. In the Middle East, the Dubai International Arbitration Center (DIAC) working under the Rules of Commercial Conciliation and Arbitration of the Dubai Chamber of Commerce and Industry (DCCI).

DIAC’s rules are available in English and Arabic and they only charge AED200, which is much lower than LCIA and ICC. For businesses located in these areas and money is not in question then it is best to settle disputes under these institutions instead of traveling to New York for an ad hoc arbitration in the UN Center. There is nothing wrong with hiring the services of these institutions as long as their rules are not outmoded or obsolete. ICC for instance is a multilingual arbitral institution with constantly updated rules that can administer large and small arbitrations around the globe. In fact, it is the most established international arbitral institution in the world with highly qualified staffs but again their fees are extremely discouraging predominantly for small dispute (Punwar 2007, p.4).  ...Download file to see next pages Read More