International Arbitration and Litigation - Jenner & ... corporations in international arbitrations,

Embed Size (px)

Text of International Arbitration and Litigation - Jenner & ... corporations in international arbitrations,

  • International Arbitration and Litigation

    CRAIG C. MARTIN

    JASON J. GREEN

  • © 2014 Jenner & Block LLP. This publication is not intended to provide legal advice but to provide general information on legal matters. Transmission is not intended to create and receipt does not establish an attorney- client relationship. Readers should seek specific legal advice before taking any action with respect to matters mentioned in this publication. The attorney responsible for this publication is Craig C. Martin. ATTORNEY ADVERTISING

    JENNER & BLOCK LLP

    AUTHOR INFORMATION

     CRAIG C. MARTIN Partner Tel: 312 923-2776 Fax: 312 840-7776 E-Mail: cmartin@jenner.com

     JASON J. GREEN1 Associate General Counsel CC Industries, Inc. Tel: 312 750-6717 E-Mail: jgreen@crown-chicago.com

    CRAIG C. MARTIN is Co-Chair of Jenner & Block’s Litigation Department. He represents corporations in international arbitrations, cross-border disputes and investigations. He also serves as lead trial and appellate counsel in litigation matters in the state and federal courts throughout the United States. In addition to his litigation and disputes practice, Mr. Martin counsels boards and board committees of public and private companies. Mr. Martin is AV Peer Review Rated, Martindale- Hubbell’s highest peer recognition for ethical standards and legal ability. In 2009, members of the Leading Lawyers Network named him one of the “Top 100 Business Lawyers in Illinois.” In 2011, he received the Judge Learned Hand Human Relations Award from the American Jewish Committee, for his extraordinary professional accomplishments and dedication to philanthropic and civic endeavors. Mr. Martin is a member of the Commercial Club of Chicago, the Economic Club of Chicago, a member of the board of directors of the Lyric Opera of Chicago and its Executive Committee, and the Chairman of the Board of Directors of the Boys and Girls Clubs of Chicago. He is a member of the American Bar Association and its Section of Litigation, where he has served in various leadership positions, and co-chaired the 2012 annual meeting in Chicago. Mr. Martin attended the University of Notre Dame, receiving his B.A. Magna Cum Laude in 1985, and Harvard Law School, receiving his J.D. in 1988.

    JASON J. GREEN is the Associate General Counsel at CC Industries, Inc., a holding and management company operated by the prominent, Chicago-based Crown family. Mr. Green was previously a partner at Jenner & Block, where he focused his practice primarily on the areas of complex commercial litigation, including breach of contract, fraud, and other business torts, bankruptcy litigation, and technology litigation. Mr. Green has represented Fortune 500 clients in state and federal courts, before arbitration panels, and in cross-border disputes around the world. He has been recognized by Illinois Super Lawyers as a “Rising Star” in business litigation in 2010, 2011, 2012, and 2013. In 2003, Mr. Green was recognized with the 2003 Albert E. Jenner, Jr. Pro Bono Award for his work in successfully defending death row inmates from challenges to the clemency orders they had been issued by former Illinois Governor George Ryan. Mr. Green attended the University of Illinois, Urbana-Champaign, receiving his B.S. in Civil Engineering in 1999 and The John Marshall Law School, receiving his J.D. in 2002.

    1 Mr. Green previously was a Partner at Jenner & Block LLP

  • OFFICES

     353 North Clark Street Chicago, Illinois 60654-3456 Firm: 312 222-9350 Fax: 312 527-0484

     919 Third Avenue, 37th Floor New York, New York 10022-3908 Firm: 212 891-1600 Fax: 212 891-1699

     633 West Fifth Street, Suite 3500 Los Angeles, California 90071 Firm: 213 239-5100 Fax: 213 239-5199

     1099 New York Avenue, N.W., Suite 900 Washington, D.C. 20001-900 Firm: 202 639-6000 Fax: 202 639-6066

    WEBSITE: WWW.JENNER.COM

  • i

    TABLE OF CONTENTS

    I. CHAPTER 1: INTRODUCTION TO INTERNATIONAL ARBITRATION ...................1

    A. The History of International Arbitration ..................................................................1 B. Other Forms of International Alternative Dispute Resolution .................................3 C. Power and Discretion of Arbitral Panel ...................................................................5 D. Reasons for Preferring International Arbitration .....................................................5

    1. Neutral Forum ..............................................................................................5 2. Discovery .....................................................................................................6 3. Confidentiality .............................................................................................7 4. Non-Precedential Judgment .........................................................................7 5. Flexibility .....................................................................................................7 6. Finality .........................................................................................................9 7. Speed ..........................................................................................................11 8. Cost ............................................................................................................11

    E. Ad-Hoc Arbitration ................................................................................................12 F. Discussion of the Major Institutional Arbitral Regimes ........................................13 G. Other Arbitral Organizations .................................................................................16

    II. CHAPTER 2: ROLE OF NATIONAL LAW ...................................................................17

    A. Substantive Rules Of Arbitration v. Procedural Rules Of Arbitration ..................17

    1. Substantive Rules of Arbitration ................................................................17

    a. Choice of Law Provisions ..............................................................17 b. Determining Whether the FAA or State Law Applies ...................18

    2. Procedural Rules of Arbitration .................................................................20

    B. The New York Convention’s Treatment Of National Law ...................................21 C. National Arbitration Statutes .................................................................................22

    1. United States ..............................................................................................22

    a. Federal Arbitration Act ..................................................................22 b. Relevant State Laws Governing Arbitration ..................................23

    2. Other Relevant National Law ....................................................................25 3. U.S. Adoption of UNCITRAL Model Law ...............................................26

  • ii

    III. CHAPTER 3: DRAFTING THE AGREEMENT TO ARBITRATE ...............................26

    A. Introduction ............................................................................................................26 B. Where Arbitral Clauses Appear .............................................................................27

    1. Commercial Contracts ...............................................................................27 2. Post-Dispute Agreements...........................................................................27

    C. Best Practices for Drafting .....................................................................................27

    1. Scope of Arbitration ...................................................................................28 2. Exclusivity of Arbitration ..........................................................................29 3. Finality of Arbitration ................................................................................29 4. Recommended Elements for Arbitral Clauses ...........................................30 5. Sample Provisions from Various Arbitral Regimes...................................31

    D. Important Considerations in Drafting Arbitral Clauses .........................................33

    1. Confidentiality ...........................................................................................33 2. Choice of Law ............................................................................................35

    a. Law governing the arbitration agreement. .....................................35 b. Procedural law. ..............................................................................36 c. Substantive law. .............................................................................37

    3. Place of Arbitration ....................................................................................38 4. Arbitral Awards .........................................................................................42

    a. Allowable Damages. ......................................................................42 b. Currency. ........................................................................................43 c. Interest............................................................................................43 d. Costs and Attorneys’ Fees. ..................