ARBITRATION and ADR are GOOD for BUSINESS

a presentation by

HEW R. DUNDAS

Chartered Arbitrator DipICArb International Arbitrator & Mediator President CIArb to the

Cámara Industriales de Pichincha

10 th July 2007

OVERVIEW of PRESENTATION

 Introduction  Dispute Resolution Options  Dispute Prevention  Conclusion

DISPUTE RESOLUTION OPTIONS

 Litigation  Arbitration  Domestic  International  Alternative Dispute Resolution (ADR)  Mediation  Conciliation  Other  Advantages and Disadvantages

LITIGATION

 Difficulties of Litigating  Local Laws – are they adequate ?

 Courts – Good, Bad and Ugly  Litigation against States  Timescales – long and VERY long  Finality  Enforceability  Costs

INTERNATIONAL COMMERCIAL ARBITRATION (1) - OVERVIEW

 What Is It ?

 Different Laws May Apply  Institutions and Tribunals  Finality  Enforceability

INTL. COMM. ARBITRATION (2) INSTITUTIONS

 ICSID/NAFTA/ECT  ICC/LCIA  CIAM  Other Regional Institutions  Chartered Institute of Arbitrators  Other

INTL. COMM. ARBITRATION (3) PROCEEDINGS (1)

 Party Autonomy  Choice of Law of the Arbitration  Choice of Rules/Institution  Choice of Tribunal  Choice of Language + Procedure  Common vs Civil Law Cultures  Communications

INTL. COMM. ARBITRATION (4) AWARD & ENFORCEMENT

 Limited Grounds to Appeal an Award  Enforcement   New York Convention 1958  Award Enforceable in 142 jurisdictions  Limited Grounds to refuse Enforcement  Enforcement Normally Fast and Low Cost Enforcement other than via NYC58

INVESTMENT ARBITRATION

 Bilateral Investment Treaties  Private Investor vs State/State Entity  Nature of Arbitration Agreement  International Convention for the Settlement of Investment Disputes  NAFTA  Energy Charter Treaty  State Immunity

ALTERNATIVE DISPUTE RESOLUTION (1) - OVERVIEW

 What is ADR ?

 Why ADR ?

 Relationship with Courts  Compulsory or Voluntary ?

 Court Support of:  The Process  The Outcome  Qualifications and Training

ADR (2) – FORMS of ADR

 Executive Negotiation  Early Neutral Evaluation (ENE)  Private Mini-Trials  Adjudication, DABs DRBs  Mediation/Conciliation  Med-Arb, Arb-Med, MedExDet  Arbitrediation  Other/None of the Above

DISPUTE PREVENTION & DISPUTE MANAGEMENT

 Prevention  Corporate Culture  Co-Operation – what do YOU Want  Conciliatory Approach  Local Customs/Culture/Mores  Management  Dedicated Task Force  Expertise – technical/litigator  Decision-making

CONCLUSION

Muchas Gracias for your ATTENTION this afternoon