Securities industry arbitration is rather young ADR instrument in Ukraine. Though the security industry is one of the spheres that particularly needs its own mechanism of resolution of specific disputes, arbitration in this market is still at the beginning of its development process. Apart from arbitration courts established by several banking associations there are specialized securities market arbitration courts created by self-regulatory organizations and business associations. Since there are no unified practice or resolving particular legal problems, participation of the specialist from the industry as arbitrators is usually highly recommended. The main reason of the involvement of industry arbitrators is that they know the rules and customs of the industry.
International arbitration is a very tricky area, there are too many peculiarities so that even an academic course in this field is only a small amount of knowledge that the practitioner should have. We are often asked by young lawyers starting their practice in arbitration about the general information that could help them to have a general picture of what is arbitration.
Let me start by stating that formally consumers’ rights in Ukraine are protected and even overprotected. They even may file claims which are free of court fees. However, recently new initiative appeared that was aimed at protection of consumers from “deprivation of rights to be protected by the state court system”. Today, October 20, the core committee of the Ukrainian Parliament gave its positive opinion to the bill that excludes the consumers’ disputes out of the competence of arbitration courts. The bill was registered with the Verkhovna Rada of Ukraine on September 9, 2010.
”The LCIA arbitration rules are universally applicable.
They offer a combination of the best features of the civil
and common law systems, including in particular:
maximum flexibility for parties and tribunals to agree on procedural matters..”
London Court of International Arbitration
This post is the second in the special set of comments “Stereotypes of international arbitration”. It is worth mentioning that here we discuss the myths which re typical for international arbitration. If you are interested in discovering the misconceptions about the domestic arbitration process you may read about some of them on Arbitration-Truth.com. In this post we would like to draw your attention to the idea, that flexibility of international arbitration procedure does not mean that there is no “scenario”.
This post opens the set of short comments concerning the most common stereotypes related to the advantages and disadvantages of international arbitration as well as other myths related to international arbitration.
Stereotype No 1. Speed and economy
“Arbitration is faster and less expensive than litigation in the courts. Although a complex international dispute may sometimes take a great deal of time and money to resolve, even by arbitration, the limited scope for challenge against arbitral awards, as compared with court judgements, offers a clear advantage. Above all, it helps to ensure that the parties will not subsequently be entangled in a prolonged and costly series of appeals. Furthermore, arbitration offers the parties the flexibility to set up proceedings that can be conducted as quickly and economically as the circumstances allow. In this way, a multi-million dollar ICC arbitration was once completed in just over two months.”
ICC International Court of Arbitration
“Introduction to arbitration. Advantages of arbitration”