On May 28, members and guests of the French-American Chamber of Commerce gathered in the offices of member firm Kelley Drye & Warren LLP for an informative, and timely, panel discussion on The Benefits & Uses of International Arbitration.

Opening the discussion, Roland Schroeder, Senior Counsel, Litigation & Legal Policy, General Electric Company, discussed the benefits and disadvantages of international arbitration. Discussing the enforceability of the award, the applicability of the 1958 New York Convention, the value of confidentiality and of choosing a neutral location, Mr. Schroeder outlined the advantages of using arbitration to resolve international disputes. He also suggested, however, that the slower speed and higher cost of the international arbitration process makes its efficiency questionable.

Daniel Schimmel, Partner, Kelley Drye & Warren LLP, offered remarks on drafting an arbitration clause. Identifying the key issues in drafting a clause, Mr. Schimmel provided an overview of drafting principles, and emphasized the importance of including an enforceable agreement as well as elements aimed at increasing the efficiency of arbitration, such as reducing the time and costs associated with the process.

Choosing the Seat of an International Arbitration was the main focus of Professor Frédéric Bachand, Professor of Law, McGill University. Discussing the importance of carefully selecting the seat of arbitration, Professor Bachand stated that the selection should help ensure the predictability, efficiency and fairness of the process. Indeed, this is considered a “critical element” of an arbitration clause. It is also necessary to consider that an arbitration agreement is potentially governed by the law of the seat. Interestingly, France, Switzerland, and the UK are the most frequently chosen by parties as seats.

A question-and-answer session with the three experts concluded the event.

The FACC thanks its member Kelley Drye & Warren LLP for generously sponsoring and hosting the event.