Patterson Belknap Webb & Tyler LLP
  November 20, 2013 - New York

More Reasons to Arbitrate in the Big Apple

In 2010, the New York State Bar Association’s (NYSBA) Task Force on New York Law in International Matters (Task Force) recommended the creation of a permanent center for international dispute resolution in New York.1 And on June 17, 2013, the New York International Arbitration Center (NYIAC), a non-profit providing world-class arbitration facilities and educational programs about international arbitration, opened its doors. NYIAC hosted its first arbitration hearings a month later. These two watershed events marked a new era for international arbitration in New York.

NYSBA created the Task Force to conduct a systematic review of the use of New York law as an international standard and the role of New York as a neutral forum for resolving international disputes, and to formulate proposals to encourage parties to use New York as a forum for the resolution of disputes. A thorough analysis by the Task Force found New York to be an ideal venue for international dispute resolution. New York is widely recognized as having an established, well-developed, and stable body of commercial law that is ideally equipped to deal with disputes arising out of complex transactions.

The New York courts fully support the U.S. Supreme Court’s pronouncement that there is “a national policy in the United States favoring arbitration.” Consistent with that policy, New York courts strictly enforce arbitral awards, and have a longstanding reputation for neutrality in international disputes. In addition, New York arbitral proceedings can be structured to streamline the discovery process and focus on developing claims and defenses early on, thereby promoting cost-effective and convenient adjudication. New York courts act as adjuncts to arbitral proceedings and “will assist in the appointment of arbitrators, issue attachments in aid of arbitration, grant preliminary injunctions and issue anti-suit injunctions to prevent parties from engaging in competing parallel proceedings.” In line with one of the Task Force’s recommendations to encourage consistent and supportive court decisions and to streamline proceedings, the Chief Administrative Judge of the New York Courts recently designated a single justice to hear all international arbitration cases before the Commercial Division of the Supreme Court in New York City.



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