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In today's business climate, every general counsel is being required to do more at a lower cost. To the bottom line of a business, legal costs look no different than any other overhead cost. In other words, less is better; and lower costs equal higher profits. For many years, arbitration of business disputes provided for a more cost-effective and timely resolution of disputes than litigation. However in recent years the business community has complained that arbitration of commercial disputes is becoming just as time-consuming and costly as litigation. Consequently, businesses and their general counsel are looking for other options to resolve disputes.
The legal community has taken notice. Fulbright & Jaworski commissioned an independent research firm in 2009-2010 to survey corporate counsel in the United States and the United Kingdom on their experiences with litigation and arbitration ([email protected].) Some of the highlights of this study were:
As to corporate attitudes toward international arbitration, White & Case, acting with the Queen Mary School of International Arbitration, University of London, has just published the results of its 2010 survey on corporate attitudes and practices regarding international arbitration (www.arbitrationonline.org/research/2010/index.html). Reporting on complaints about excessive time and cost, the White & Case survey reported:
As further evidence of the widespread concern among business users of domestic and international arbitration, virtually every arbitration provider institution have commissioned similar studies or published protocols, guidelines and rules ' all with a view to addressing business users' concerns about excessive time and cost of arbitration to resolve commercial disputes.
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