Originally from World Arbitration And Mediation Review (WAMR)

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MESSAGE FROM A CLIENT

Charles A. Beach

I. INTRODUCTION
I have told my family over the years that working for
ExxonMobil makes me feel like the kid in high school whom
everyone ignored until his daddy bought him a red Corvette.
ExxonMobil has been my red Corvette. In thirteen months, I have
to turn in the keys, so I am talking while a few of you are still
paying attention.1
My message has two parts. The first part is: Transnational
corporations need international arbitration. It is the only way to
obtain a neutral forum and a binding, enforceable result. The
second part is: International arbitration is under attack from,
(i) governments (including the U.S. government), which see it as a
threat to sovereignty; (ii) interest groups, which see it as a
procedure that favors powerful corporations at the expense of
consumers, the environment, and human rights; and
(iii) corporate clients, who view it as an expensive product that
does not work very well.

II. TRANSNATIONAL CORPORATIONS NEED
INTERNATIONAL ARBITRATION
The first part of the message is straightforward. Fair
resolution of a dispute requires two essential elements: a binding,
enforceable result and a neutral forum.
Litigation will give us a binding result but, with few
exceptions, litigation will not ensure a neutral forum. Even in
countries with well-established legal systems, one party is in its
home court. One party will be more familiar with the system and
procedure. More importantly, one party may have the advantage