1. Conflict Resolution

2. Basic Forms of Conflict Resolution
Litigation
Alternate Forms of Dispute Resolution
Negotiation
Mediation
Arbitration

3. Advantages of ADR over Litigation
Less expensive
Less time consuming
Parties can choose the person who will preside
Might prevent adverse publicity
Preserve confidentiality
Serves to preserve relationship between the parties

4. Problems with Arbitration
Unpredictable: Not required to follow previous cases
Lack of legal training of some arbitrators.
Absence of written opinions.
No standard rules to follow
No Discovery
Limited or no appeal
Fed. Arb. Act. Sec. 10
Corruption, fraud or other undue means
Arbitrator exhibited bias or corruption
Refusal to postpone hearing, hear evidence
Arbitrator exceeded his/her powers

5. Arbitration Resolution of a dispute by a neutral third party(s)
Arbitrator not constrained by precedent, as is a judge.
Award is legally binding.
Limited of no Appeal (Finality)

6. Methods of Securing Arbitration
Binding arbitration clause in contract
More than 95% of collective bargaining agreements have such clauses.
Statute
Submission agreement
A written contract which can be entered into at any time.

7. Methods of Securing Arbitration
Court Annexed Arbtration
Compulsory by court rule
Lawsuits below a certain amount of damages
($50,000.) must first be heard at an arbitration
hearing.
Automatic right of appeal to trial

8. International Dimensions of ADR
ADR is highly favored internationally.
New York Convention
Makes arbitrators’ awards enforceable in losing party’s country.
U.S. policy favors arbitration of international disputes.

9. Federal Arbitration Act Section 3
If any suit or proceeding be brought in any of the courts of the United States upon any issue referable to arbitration under an agreement in writing for such arbitration, the court … shall onapplication of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement,
Title 9, US Code, Section 1-14, enacted February 12, 1925

10. New York Convention
United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards
(New York, 10 June 1958)
To date about 160 nations have adopted the Convention

11. Article I
1. This Convention shall apply to the recognition and enforcement of arbitral awards made in the territory of a State other than the State where the recognition and enforcement of such awards are sought, and arising out of differences between
persons, whether physical or legal. It shall also apply to arbitral awards not considered as domestic awards in the State where their recognition and enforcement are sought.

12. Article II
Each Contracting State shall recognize an agreement in writing under which the parties undertake to submit to arbitration all or any differences which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not, concerning a subject matter capable of settlement by arbitration.

13. Article III
Each Contracting State shall recognize arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon, under the conditions laid down in the following articles. There shall not be imposed substantially more onerous conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards.

14. Effects of New York Convention
Attracts and protects foreign investment since efficient global trade requires effective international dispute resolution.
Provides a reliable mechanism to enforce binding resolution of business disputes without interference from local courts.

15. Additional Conventions and Treaties
Convention on the Settlement of Investment Disputes Between States and Nationals of
Other States, "ICSID Convention" or "Washington Convention").
North American Free Trade Agreement
("NAFTA").

16. Conventions and Treaties
Inter-American Convention on International Commercial Arbitration ("Inter-American Convention") is yet another key multilateral convention. The United States and 18 other OAS countries are signatories

17. Contractual Precaution
1. Insure all parties to contract are based in countries which are signatories of the N.Y Convention
2. Specify place of appeal and limit reasons to those listed in N.Y. Convention.
3. Examine court system of country to determine likelihood of court interference.
(Russian Courts likely to interfere)

18. 4. Consider insurance to cover loses.
5. Select place of arbitration considering law governing conduct of the arbitration.
Commonly used venues: Paris; London, Geneva; Stockholm; The Hague, Netherlands; Vienna

19. International Arbitration Associations
American Arbitration Association (AAA)
ICC International Court of Arbitration - The International Court of Arbitration of the International Chamber of Commerce
(Paris, France).
ICCA
The International Council for Commercial Arbitration.

20. ICSID
The International Centre for the Settlement of Investment Disputes, World Bank, Washington, USA. Created by the
Washington Convention.
LCIA
The London Court of International Arbitration.
Permanent Court of Arbitration
(The Hague, The Netherlands)

21. UNCITRAL
The United Nations Commission on International Trade Law (Vienna)
WIPO
The World Intellectual Property Organization (Geneva)

22. Current Issues EEOC v Waffle House
A private agreement between an employer and an employee to arbitrate employment – related disputes does not prevent the the Equal Employment Opportunity Commission from pursuing victim-specific relief, i.e. back pay, reinstatement and monetary damages