Despite the fact that most business relationships usually run satisfactorily for both sides, differences of opinion can, on occasion, become entrenched viewpoints and ultimately lead to disputes. As a private, autonomous resolution mechanism, arbitration provides an alternative to resorting to the state justice system to settle such cases. By agreeing to arbitration, the parties are able to exclude courts of law in the event of legal disputes arising from a contractual relationship and commit to accepting the decision of a court of arbitration. Founders and settlors can also stipulate that any disputes relating to the asset-holding structures they have established are to be referred to a court of arbitration. An arbitration clause of this kind is generally binding on the beneficiaries.
The benefits associated with arbitration proceedings should not be underestimated. The parties have a say in who is appointed as arbitrator and there is greater scope for tailoring the proceedings to suit the individual case than would be possible in an ordinary court of law. This also helps to speed up the decision-making process. Furthermore, arbitral awards are recognised and enforceable in 150 countries under the New York Convention and the circumstances under which an arbitral award can be set aside are limited. A major advantage of arbitration is confidentiality. Arbitration proceedings are not heard in public and therefore maintain a certain amount of discretion.
As the parties are able to select an arbitrator, this gives them the possibility of influencing the composition of the court of arbitration. Above all, an arbitrator with exceptional expertise in the matter at hand can play a crucial role in enabling the court of arbitration to form a well-founded opinion. In the frequently sensitive disputes relating to foundations and trusts in Liechtenstein, our clients benefit from the particular know-how of attorney-at-law Harald Bösch in the context of arbitration proceedings.
The services we offer in conjunction with arbitration include the following:
- Drafting of arbitration agreements and arbitration clauses
- Mandates to act as arbitrator
- Advice on the selection of arbitrators
- Representation of parties in ad hoc or institutionalised arbitration proceedings
- Representation of parties in any ancillary proceedings before ordinary courts of law