In China Law & Business Article, Akin Gump Authors Compare and Contrast U.S. and Chinese Arbitration Systems
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“Planning for the Worst,” an article written by Akin Gump litigation partner Susan Leader and associates Brett Manisco and Kristen Chin, with assistance provided by senior consultant Vena Cheng, has been published by China Law & Practice. The article looks at the differences between U.S. and Chinese litigation in court and private arbitration.
The authors begin by writing that, while arbitration provisions “are rarely an area of focus when negotiating contracts, they will certainly impact a company’s rights and potential liabilities if a dispute arise.” In China, they note, arbitration “has been gaining popularity as the preferred method of dispute resolution.” With that in mind, they list several questions that should be considered when considering and negotiating an arbitration provision. They include:
- Arbitration service providers
- Governing rules
- Arbitrator selection
Leader, Manisco and Chin then detail some other practicalities where arbitration differs from conventional litigation as well as the type of disputes that could potentially arise, whether in the United States or China. These include confidentiality, discovery and enforcement, among others.
The article concludes by noting that despite certain benefits associated with arbitration, there are also some risks. The authors suggest “careful consideration ought to be paid to the drafting of an arbitration provision tailored to the contracting party’s objectives.” Careful consideration on the front end of a deal, they write, “could dramatically improve the chances of prevailing if your dispute lands in arbitration in the United States.”
To read the full article, please click here.
