An alternative to litigation: Arbitration
Arbitration is a contentious method of resolving disputes, mainly in commercial matters. The term “international arbitration” is used when the commercial transaction in dispute does not take place exclusively in a single country, i.e. when it involves the transfer of goods, services, funds, technology or personnel across borders.
It is a form of justice that differs from state justice in that it is contractualized, in compliance with the law, and adapts to the needs of companies. To this end, with the agreement of the parties, arbitration rules are drawn up, the purpose of which is to determine the conditions under which the procedure will take place, including its cost, and to appoint the members of the tribunal.
Unlike mediation, the arbitrator settles the dispute by making an award. This decision may be appealed to the competent court of appeal for annulment.
The procedure can either be ad hoc or take place within arbitration institutions, depending on the arbitration clause inserted in the contract binding the parties. The first method allows the parties complete freedom, while recourse to an institution offers the advantage of a proven framework for the settlement of international disputes.
The French capital is one of the world’s most renowned arbitration centers, thanks both to its lawyers who specialize in arbitration law, and to the institutions that provide an efficient framework for handling commercial disputes, such as the International Arbitration Chamber of Paris (CAIP), the International Chamber of Commerce (ICC), the Maritime Arbitration Chamber of Paris, the French Arbitration Association (AFA) and the Paris Mediation and Arbitration Center (CMAP).
Arbitration can also be used to settle disputes between professionals in a regulated profession. The Paris Bar, for example, has set up a framework dedicated first to finding a solution through conciliation and then, in the event of failure, through an arbitration procedure presided over by the Bâtonnier (or, more generally, his delegate).
Alternative Dispute Resolution (ADR): Mediation
Mediation is one of the amicable methods of dispute resolution, which include procedures designed to achieve a negotiated settlement between the parties, such as conciliation or participatory procedures. Unlike participatory procedures, the agreement is reached through the services of a third party, and unlike conciliation, mediation is not free of charge, as the mediator who receives the parties in conflict is a professional paid by the parties themselves.
This third party may be a lawyer mediator or any other person competent in the dispute submitted to his or her expertise. Like the arbitrator, the mediator offers guarantees of independence and impartiality, in accordance with the provisions of the French Code of Civil Procedure. He or she also guarantees the confidentiality of negotiations, a major advantage since his or her intervention is unlikely to prejudice parallel or subsequent litigation proceedings.
For several years now, mediation has been increasingly promoted by public authorities as a means of finding solutions in cases that would normally be referred to the courts. It is particularly encouraged by legislators and judges to resolve “small” disputes between neighbors, for example, or unpaid bills of a few thousand euros, but it is just as attractive for resolving major disputes.
The mediator’s role is to analyze the situation of the parties, possibly assisted by counsel, identify their needs and help them reach an agreement that respects their respective interests.
The firm’s team is headed by three partners with extensive experience of complex litigation, both before the courts and before the above-mentioned institutions. They are regularly appointed as arbitrators or counsel for parties in ad hoc arbitration, before commercial arbitration bodies (ICC, CMAP, annulment proceedings) or professional arbitration bodies (Paris Bar, appeals), or as mediators or counsel for parties to mediation proceedings.