Arbitration

The default method of having a dispute resolved is litigation in a national court (normally open to the public), which leads to an enforceable judgment.  In many cases contracting parties can agree to arbitration, which is similar to the parties selecting their own private Judge for judgment only.  Some topics are not capable of being decided by an arbitrator, such as criminal guilt, marital status, or the validity of a patent, because those can only be determined by the State (through its courts). The subject-matter of most arbitration agreements is commercial:  performance and payment.

Arbitrations in which the parties, the law and the issues are all within one jurisdiction (such as England and Wales) are called “domestic” arbitrations. By contrast, international arbitrations require at least one international element of some sort, owing to the recent revolution in transport, communications and information technology, the growth in international trade and contracts, international arbitrations are becoming increasingly common.

Arbitration tends to work best in small trading communities such as commodity trade associations, where the parties will continue to do business and where an adverse award and its effect on reputations will matter.  It is less likely to be effective where the parties are strangers to each other and need never see each other again or suffer the embarrassment of an adverse award.

The result of arbitration is called an award. If it is valid it can be enforced like a judgment, but only through a national court.  The intervention of national courts is often needed in connection with starting, preventing, promoting, assisting and terminating arbitration, so the arbitration process is seldom entirely free of national courts. Apart from some small claims in some jurisdictions where courts can force the parties to go to arbitration, no-one can be compelled to go to arbitration: it is consensual.

Arbitration is often chosen by contracting parties wishing to avoid national court litigation in the event of a dispute arising because:

  • They want the dispute resolved in private,
  • They want the dispute to be resolved by someone who understands their trade or profession,
  • They believe that arbitration will be quicker,
  • They believe that arbitration will be cheaper,
  • They think that the procedures in arbitration are less rigid and formulaic than court processes,
  • They wish to avoid what they see as endless appeals in the litigation process,
  • One or other (e.g. a state or a quasi-state body) refuses to submit to the national court of the other or does not trust that national court’s independence, or
  • Internationally arbitration awards are generally easier to enforce than national judgments.

The perceived advantages of arbitration over litigation may be more apparent than real.  Arbitration is frequently slower, and frequently more expensive, than litigation. In arbitration you are more likely to get an expert deciding your case.  Arbitration can be very flexible indeed but only if the parties truly collaborate about the resolution of their dispute, which is rare once the disagreement has erupted.  Arbitration is less likely to be made public but the confidentiality of arbitration was never total and is latterly becoming further diluted for various reasons.  In arbitration there is at best very limited scope for appeal and for many clients that is an advantage– unless, of course, the award is adverse!  An award by an arbitrator is more likely to gain the respect of the unsuccessful party – which may assist enforcement or make it unnecessary. In international disputes the successful party is more likely to be able to enforce an award than a judgment.  For a client contracting with a state or quasi-state entity which refuses to submit to a national court, there may be no choice if the client wants the contract.

When should you consider arbitration?

Arbitration clauses (referring to future disputes) are often included in written contracts, along with the choice-of-law clause and any jurisdiction clause.  If a dispute arises and the parties later agree to refer that dispute to arbitration, this is known as a submission agreement. These are rare, because by the time a dispute has arisen the parties are unlikely to collaborate and one will usually feel that his prospects of success are better if he declines to submit to arbitration.

Negotiators who have spent days or months trying to secure a contract will be understandably hesitant to jeopardise successful negotiation of the substantive terms with blunt talk about unpalatable topics like breach of contract, remedies and how and where the defaulter should be brought to justice etc, and many arbitration clauses are tacked on – often at 3am – without much, if any, thought being given to the wisdom of selecting arbitration at all.

Should you insert an arbitration clause?

Consider all the factors above in all cases (and seek advice about them) but in international contracts the question of enforcement (by you or against you) is likely to be paramount.  If you think that you are the party more likely to need a judgment or award, try to ascertain where your counterparty’s assets can be found and whether that country’s courts will enforce either foreign judgments or international arbitration awards.

The last thing you want is to spend a long time and a fortune in costs on litigation or arbitration only to find that when you get your favourable judgment or award it is unenforceable in the country where the respondent’s assets are located. Take advice before deciding on arbitration.

At Carter Lemon Camerons we have substantial experience of both domestic and international arbitration to deploy in the interests of clients, as solicitors, advocates and post graduate teaching. Arbitration matters in which we have been involved include the enforcement in England of an international award resulting from a major construction contract in Africa (the awards involved five different currencies), the performance of an English domestic construction contract and the alleged breach of a major international consulting contract (all subject to confidentiality).

Meet the team

Trainee Solicitor - Corporate/ Commercial, Private Client

Christina joined Carter Lemon Camerons LLP after receiving a BA from the University of York, and distinctions in both the GDL (University of Law) and LPC (BPP University).

Christina has completed a seat in the Dispute Resolution department, and now joins the Corporate/Commercial, and Private Client teams. She brings with her the experience that she developed litigating family and commercial matters.

Outside of work Christina loves exploring London’s newest restaurants and seeing shows at the theatre.

020 7406 1000 - ChristinaMatjilla@cartercamerons.com
Solicitor - Litigation and Family

Harley joined Carter Lemon Camerons as a solicitor in May 2024 after completing her LPC and Master’s degree in Law. She began her legal career in industry, working in-house as a paralegal before taking up a training position at a regional law firm.

Working across our Family and Litigation departments, Harley possesses expertise across a range of family matters, including divorce, matrimonial finances, children matters, child arrangements, and injunctions, such as occupation and non-molestation orders.

She is also experienced in civil litigation work, handling issues such as money claims and property disputes, including landlord and tenant matters, housing disputes, Section 21 and Section 8 notices.

Beyond the office, Harley enjoys spending time with her family and finding the best holiday destinations around the world!

020 7406 1000 - HarleyOsborn@cartercamerons.com
Solicitor - Litigation

Kiran has been working in litigation and dispute resolution since 2009.  She is a dedicated and skilled litigation solicitor.  Kiran studied the LLB at University of Hertfordshire and completed the Bar Vocational Course (as it was known then) in 2008.  She cross-qualified as a Solicitor in 2012 whilst working at a firm in Central London.

Kiran moved away from London and worked in regional firms in the Midlands and Berkshire from 2015 before moving to Carter Lemon Camerons in 2023.  She understands the importance of building strong relationships with individual and commercial clients to provide an excellent service and offers comprehensive legal representation tailored to meet the unique needs of each of her clients.

Kiran possesses a thorough understanding of the complexities of litigation and is known for her strategic approach to resolving disputes.  She is committed to providing personalised attention to each client, guiding them through every step of the legal process with empathy and professionalism.

Areas of Expertise

  • Civil Litigation: Kiran has extensive experience representing clients in civil litigation matters, including contract disputes, constructive trust disputes, defamation and data protection claims, and insolvency.  She is skilled at crafting effective legal strategies to protect her clients’ interests and achieve a favourable outcome.
  • Commercial Litigation: Kiran has successfully represented businesses of all sizes in disputes involving breach of contract, business rates, IP disputes, trustees in bankruptcy and partnership disputes. She understands the commercial needs for her clients and strives to minimise risk while maximising results for her clients.
  • Property Litigation: Kiran has extensive experience representing both landlords and tenants in disputes arising from residential and commercial agreements. She provides guidance on matters such as lease terminations, rent arrears, eviction proceedings and contractual covenants within agreements, working diligently to protect her clients’ rights and interests.
  • Contested Probate: Kiran has extensive experience in bringing and defending contested probate claims for individuals and trustees.  She has worked on matters involving, contesting wills, deeds of variation, beneficial interests, proprietary estoppel claims, and claims made relating intestate estates.

Kiran is a skilled negotiator, dedicated to finding amicable solutions to conflicts whenever possible. She approaches each dispute with a focus on achieving efficient and cost-effective resolutions for clients while always preparing for the possibility of litigation if necessary.

Kiran understands that navigating the legal system can be daunting, especially for individuals facing challenging circumstances. That’s why she is committed to providing compassionate and attentive representation to every client. She takes the time to listen to their concerns, explain their legal options in clear and accessible language, and empower them to make informed decisions about their cases.

020 7406 1000 - kiranbansal@cartercamerons.com
Partner - Commercial Litigation and Arbitration

The Legal 500: Recommended lawyer 2020Seamus Smyth is head of litigation and arbitration. His practice is primarily commercial with an emphasis on arbitration, financial services and work for South African and Italian clients.

Transactions

His reported cases include RH Green & Silley Weir v BR (limitation period against 3rd party), de Bry v Fitzgerald (security for costs), Hartt v Newspaper Publishing (libel concerning a work by Michelangelo), Pearson v Sanders Witherspoon (valuation of loss of chance), Siebe Gorman v Pneupac (status of consent orders), Senate Electrical v NTL (liability of an employee for acquisition warranties) and Bendell v Smith & Others (a successful recovery action by a lender on a shared appreciation mortgage equity release – the only such case to go to trial).

Recently involved in enforcement of foreign arbitration awards, claims arising from the banking upheavals since 2007, a successful claim against a high street bank resulting from a banking error and a successful claim against estate administrators and their solicitors for wasting the estate funds on irresponsible litigation.

More…

Educated (BA, LLB, Wits) and first qualified as an attorney in South Africa, he requalified in England in 1977, took an LLM at UCL and a Diploma in International Arbitration at QM, and became an FCIArb. He is chairman of the British South African Law Association (for the second time), chairman of Michaelhouse UK Trust, chairman of Global Leadership Foundation (UK), a former President of the London Solicitors Litigation Association and Trustee and President of Town Malling Cricket Club (established in 1827!).  He was until 2012 a Visiting Senior Lecturer in International Commercial Arbitration at London Metropolitan University.  When work and domesticity permit he plays some cricket and more golf (but – which is immediately obvious – not nearly enough).

020 7406 1000 - SeamusSmyth@cartercamerons.com

Do you have a question?

    If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email privacy@cartercamerons.com.

    Related News