The Impact of (Mis)communication on International Commercial Arbitration

Abstract

International commercial arbitration is often considered the principal method for solving disputes between international business parties mainly because of its final and binding nature. International commercial arbitration is a valued alternative to litigation in foreign courts, while also avoiding simultaneous legal claims in different jurisdictions around the globe. In this context, effective communication among private parties, which is defined as steering clear of potential miscommunications among them in international business transactions, is essential for the negotiation of successful arbitration agreements and efficient international arbitral proceedings. Complexities concerning the communication among parties located in different countries—with different cultures and distinct legal traditions—abound. Such complexities are informative of the main stages of international commercial arbitration, namely, before reaching the negotiation table, during the writing of the arbitration agreement, and after a legal dispute arises. This topic has not been subject to comprehensive analysis, despite its significant impact on the parties’ business needs and related optimization of their interests. In addition, trending relevant issues in the field include the recently signed Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters, the increasing judicialization of international arbitration proceedings, the increasing use of artificial intelligence and empirical studies in international commercial arbitration.