Choosing the seat in international arbitration

The seat determines the legal home of the arbitration. Irrespective of where hearings are physically held, it establishes the procedural law and the courts competent to hear an action to set aside the award.

Relevant considerations include the maturity of the local arbitration framework, the attitude of the courts, the availability of interim relief and whether the state is a party to the New York Convention.

Drafting the arbitration clause clearly avoids later jurisdictional argument. Where institutional arbitration is chosen, departures from the institution’s model clause call for caution.

The governing law, the seat and the language of the arbitration are distinct elements and should each be addressed separately in the contract.

This content is for general information only and does not constitute legal advice.