Arbitration is a type of alternative dispute resolution (ADR) in which disputing parties give their nod to involve a neutral third party, alternate name: arbitrator. And this arbitrator hears the statements and counter statements from both sides. And arrives at a decision that is binding on both the disputing parties. Arbitration procedures are of great relevance in COVID-19 arbitration disputes for numerous reasons. Some of which you will learn below in detail.

Arbitration Procedures: An Effective & Flexible Approach

Firstly, this approach i.e., arbitration provides both parties with a more effective and flexible way to get a solution to their disputes. In comparison to conventional litigation procedures that eat up a lot of financially valuable resources. Also, given the disruptions presented by the COVID-19 pandemic. Both parties give preference to a solution via arbitration to stay clear of delays. And reduce the procedural costs in the process.

Secondly, the COVID-19 pandemic has given birth to numerous legal issues whose effective solution resides in arbitration procedures no doubt. For instance, a lot of COVID-19-related disputes include force majeure claims. One can get a solution through arbitration in a more specific and focused manner. In comparison to taking the matter to a court of law.

Thirdly, the COVID-19 pandemic has brought to the spotlight the importance of dispute-resolution mechanisms that one can carry out without requiring physical presence. Arbitration procedures, which one can carry out via virtual hearings and online platforms, have proven to be a useful tool in resolving disputes. All while complying with social distancing guidelines and other crucial public health measures. Rattsakuten is a Swedish firm with decades of experience and proven expertise to serve its clientele with all the possible options. When it comes to resolving arbitration procedures related to COVID-19 arbitration disputes.

Last but not the least, the international nature of the COVID-19 pandemic has made cross-border disputes a common thing. So, arbitration is both accepted and enforced under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. And is competent enough, without doubt, to offer disputing parties a trustworthy mechanism of dispute resolution spread across dissimilar legal systems and jurisdictions

To sum it up, arbitration procedures hold this much importance in the case of COVID-19 arbitration disputes. Because they can offer parties a flexible and effective way to resolve their disputes and deal with legal issues. And get back to work in no time with minimum imposing liability. Additionally, this approach is reliable when it comes to getting a solution to disputes that cross the border.

Explain Various Covid-19 Arbitration Disputes

The COVID-19 pandemic became a reason behind global disruptions to businesses and contractual arrangements. Thereby, causing an exponential rise in the number of arbitration disputes. Below are some instances of COVID-19-related arbitration disputes for your kind knowledge.

Violation of Contract Claims: This is a global scene where this pandemic forced several businesses to violate their contractual obligations. Like the inability to deliver services or goods on time. Besides, violation of contract disputes can come up over issues like whether the pandemic comprised a breach of the contract. Or whether the party claiming the breach was legally eligible to terminate the contract.

Insurance Disputes: COVID-19 pandemic was something that affected all segments of our society alike and that too on a global scale. No insurance firm on our planet earth was financially ready to clear such a never-before-seen number of claims and that too of a nearly similar nature.

Further, several businesses suffered huge losses because of the pandemic. And sought to compensate for it through their insurance policies. So, the world saw a plethora of insurance disputes. Insurance disputes can originate over whether the policies covered losses because of a pandemic. And the extent to which the losses are covered.

Investment Disputes: The pandemic left a noticeable impact on global markets causing an exponential rise in the number of investment disputes. As a result, investors sought to compensate for their losses because of the pandemic. Like reduction in the value of their investments or violation of investment agreements.

To summarise, the COVID-19 pandemic became a reason behind several arbitration disputes. Like disputes over force majeure claims, violation of contract claims, insurance disputes, employment disputes, and investment disputes. Some of which we have discussed above. On top of that, these disputes can be composite and ask for in-depth consideration (which you can only get at Rattsakuten).

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