Arbitration

Why to choose arbitration:

Arbitration is not just a means of dispute resolution, it is a world perception where liberation from constraints presented by national laws and court procedures plays pivotal role. Arbitration stems from an arbitration agreement or arbitration clause in a contract, which vest the powers to decide the dispute with arbitrators in lieu of ordinary courts. 

Moreover, court procedures are not suitable for all disputes. In complex international cases that go far beyond a daily agenda of an otherwise competent court, it might be sensible to select arbitration instead. The latter ensures a greater flexibility than court proceedings. In addition, arbitration does not have to result in a 'win-lose' scenario. Hence, arbitration may allow for further cooperation between the disputing parties even after rendering of an arbitral award. Arbitration need not necessarily be less expensive than court proceedings. Nonetheless, it may still be an effective means of dispute resolution, for the parties may agree that the dispute will have been decided e.g. within six months since submitting of the arbitral claim. There is no appeal in arbitration. Thus, the process is more effective in terms of enforcement of an award.

In contrast to court proceedings, the parties may choose a person to decide their dispute, depending on the knowledge and experience required therefor. Arbitration means neutrality. Arbitrators do not represent a particular state and should have no prejudice arising from cultural differences. Parties often opt for arbitration, as their dispute would be otherwise decided by the courts of one of the parties. In this sense, too, arbitration ensures neutrality.

Arbitration is generally a confidential process. Therefore, the risk that a business secret or sensitive information leaks is significantly reduced. Thus, the existence of the pending dispute will not damage the parties' reputation.

International investment and commercial arbitrations share certain features. They also differ though. The rationale behind investment arbitration is that the courts of the state where the investment was made does not seem to be independent and impartial in deciding whether its own state violated an investment treaty. At the end of the day, judges are state's employees.

Investment arbitration ensures that an investor who has suffered harm caused to his investment by an act of the host state will be able to pursue his rights in a neutral forum. Arbitration functions preventively as well, in that it deters the host state from taking harmful measures against the investment. On the other hand, international investment arbitration does not serve as an insurance policy against bad business decisions made by an investor.

Why to choose our arbitration services:

In choosing an arbitrator, parties should consider two facts. First, it is necessary to know whether the arbitrator is independent, meaning that he is not, for instance, connected to a particular corporate group. Second, it is of utmost importance that the arbitrator will exercise his function professionally. This means, among others, that the arbitrator may he expected to know all facts and legal arguments submitted by the parties thoroughly, as well as all details of the laws applicable in the arbitration proceedings. Moreover, the arbitrator should accept his mandate only in a reasonable number of cases, so that he may dedicate full attention to them.

Our legal boutique offers an option to select Zdeněk Nový as an arbitrator in commercial and investment arbitration. He was involved in four high-profile investment arbitrations. Zdeněk Nový participated in both ad hoc and institutional arbitrations under various rules. Zdeněk knows arbitration also from the perspective of a decision-maker, as he arbitrated a number of domestic commercial cases. Zdeněk Nový has not been connected to any company or group of companies and not been appointed as an arbitrator by one identical party repeatedly. His personal commitment is that he would accept only reasonable number of nominations as an arbitrator, so that he would be able to devote the needed attention to each case.

Zdeněk Nový has not only practical experience with arbitration in work, but also a strong academic background in public international law. The latter requirement is indispensable for any investment arbitration. Moreover, Zdeněk Nový has extensive knowledge of private international law being a necessary requirement for arbitrating cross-border commercial cases.

Zdeněk Nový accepts his appointments as an arbitrator in an ad hoc arbitration as well as under institutional rules, like those of Vienna International Arbitral Centre or International Arbitration Court of ICC in Paris. He provides arbitration services in Czech or English language.

Remuneration for arbitration services is to be agreed between the parties and arbitrator, and depends on various factors, as complexity and complexness of the case or the extent of work to be done. However, please be informed that investment arbitration is generally more expensive than commercial one. With regard to institutional arbitration, the arbitral institutions set out their own rules on arbitrator's fee.