Reinier Russell

managing partner

Reinier advises national and international companies

reinier.russell@russell.nl
+31 20 301 55 55

The advantages of arbitration

Publication date 19 May 2021

Arbitration is an appealing alternative to regular courts. Arbitrators are experts and arbitrational awards are recognized in more countries.

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What is arbitration?

Arbitration is an alternative to court proceedings. It is often applied in (international) business. Disputes are presented to one or three independent persons having expertise in the area of the dispute.

Advantages of arbitration

You can choose to include an arbitration clause in an agreement. The main advantages of arbitration are the following:

  • Arbitration prevents discussion about which court has jurisdiction.
  • Arbitrators, unlike regular courts, have specific expertise. Also, they do not need to be lawyers.
  • The parties may agree on the language of the arbitration and the number of arbitrators. In addition, they can appoint arbitrators provided that they are impartial and independent.
  • Arbitration is not public and therefore confidential.
  • Arbitration awards are often pronounced faster than court decisions.
  • Internationally an arbitration award is often easier to enforce than a court decision.

Execution of an arbitration award

To execute an arbitration award in the Netherlands, you must first obtain leave from the judge in charge of preliminary relief proceedings. The judge will refuse the leave only  in very exceptional cases.

International

Abroad, an arbitration award is often easier to enforce than a court decision. Arbitration awards are recognized in the 156 countries that signed the New York Convention of 1958.

Court decisions are recognized in a much smaller number of countries. If a decision is not recognized, the case may have to be heard all over again to obtain a decision that can be enforced.

Arbitration lawyer

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