An international law firm in Hungary makes a case for the benefits of arbitration between companies from the UK and the EU following the uncertainty of a post-Brexit legal climate. Read on to find out more about why commercial arbitration has gained in popularity!
A Hungarian international law firm’s report on how Brexit affects transnational litigation
Pre-Brexit, companies from the UK could enjoy the EU’s transparent transnational dispute resolution structure whenever they needed to litigate against other companies from the European Union. The predictability of this process is now non-existent.
While a “hard Brexit” has been avoided in most areas, civil disputes have not been nearly as lucky, as the TCA (Trade and Cooperation Agreement) between the two parties made no mention of any arrangements whatsoever concerning reciprocity. This means that European companies have much less guarantee when trying to enforce judgments made in the UK (and vice-versa), even if they prevail through the litigation process.
This is why an international law firm from Hungary sees arbitration as solution for many companies
There is however one civil jurisdiction matter that remains unchanged between the EU and the UK: arbitration. Even post-Brexit, companies need not be afraid of being stopped in their tracks right in the middle of legal proceedings.
Commercial arbitration has always been a popular choice for solving cross-border disputes, especially with the help of the right company.
According to an international law firm in Hungary, the benefits of arbitration include:
- Confidentiality:parties can protect sensitive information about their companies from leaking to the public.
- Impartiality and expertise:each party nominates their own arbitrator: an expert in the field related to the dispute, and who understands the finer points of the industry in question.
- Faster proceedings:compared to transnational litigation, arbitration is a lot more flexible and quicker process, especially with expedited procedures that can drastically reduce the time needed for proceedings, and allow easier scheduling for all parties involved.
- Enforceable results:the finality of the proceeding’s results is another benefit of arbitration, with only limited options for challenges after a judgement has been made.The enforcement of an arbitration’s results remains undiminished by Brexit, since such proceedings fall under the jurisdiction of the New York Convention: an international treaty that exists outside the scope of EU treaties, and to which the UK and EU are all parties.
Seizing the benefits of international arbitration with the help of an international law firm in Hungary
According to an international law firm from Hungary, any dispute can be arbitrated: the only condition is that all parties participating in the legal dispute need to agree to it. If a company’s contracts with counterparties already specify arbitration as method to resolve legal disputes, its default position will always be arbitration.
However, if your contracts do not specify anything, you can always revisit them to include arbitration in order to solve your legal disagreements. Of course, this would mean that you and your legal opponent would all need to agree to modify your contracts. This can be an opportunity for everyone involved, since all parties like to have a predictable and potent legal solution to solve their commercial clashes.
