The forum decision shapes cost, speed, and confidentiality. Here is how we weigh it.
When a dispute looks likely, one of the earliest and most consequential decisions is where it will be resolved. The choice between litigation and arbitration shapes cost, speed, privacy, and how easily any eventual award can be enforced.
Arbitration offers confidentiality, a neutral forum, and — through international conventions — relatively straightforward cross-border enforcement. Those advantages come at a price: arbitration can be expensive, and the limited rights of appeal mean a poor result is hard to undo.
Litigation, by contrast, is public and bound by national procedure, but it offers the coercive powers of the court, established rights of appeal, and, in many cases, lower cost for straightforward claims.
Because the forum is usually fixed by the contract long before any dispute arises, the time to weigh these trade-offs is at the drafting stage. A dispute-resolution clause that reflects the realities of the relationship is worth far more than a boilerplate one copied from the last deal.
This article is provided for general information only and does not constitute legal advice. For guidance on your specific circumstances, speak with our team.
Book a consultation