Choice of Law and the International Arbitration Agreement - Dispute Resolution Journal - Vol. 54, No. 4
The author is a third-year law student at Fordham University, where she is an editor of ADR & the Law, an annual joint publication of the American Arbitration Association, the Fordham International Law Journal, and the Fordham Urban Law Journal. After completing her J.D., she plans to join the firm of Jones, Day, Reavis & Pogue in New York as an associate.
Parties to international transactions often include a choice of law clause as part of their arbitration agreement. This article discusses whether the express law chosen by the parties to an international contract governs the procedural rules of arbitration, or is limited to the substantive rights of the parties under their agreement. Recent federal and state court decisions on the “choice-of-law” determination are evaluated in light of the realities of international arbitration today.
With the unprecedented growth of international trade in recent years, international commercial arbitration has evolved as the business community’s solution to many of the complexities and pitfalls associated with international commercial litigation.1 For one thing, compared with in-court litigation, arbitration is often cheaper and more efficient.2 Arbitration also shields parties to international agreements from the local biases of foreign tribunals and the obvious risks of litigation in a country whose customs and laws