Originally from Alternatives to the High Cost of Litigation

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What constitutes a reasoned arbitration award in international commercial arbitration? And why are reasoned awards necessary or at least useful in those cross-border arbitration settings?

As fundamental as these questions are, neither has really been addressed, despite the pervasive use of arbitration as a means of resolving transnational business disputes.

Parties prefer international commercial arbitration over litigation for numerous reasons ranging from the intricate blend of common law and civil law procedures to the easy enforceability of awards. The popularity of international commercial arbitration, however, in some ways belies its sophistication. Indeed, the process is more like complex commercial litigation than domestic arbitration.

Although international commercial arbitration is considered a highly mature form of dispute resolution, little information exists as to what constitutes a reasoned award in the international commercial context or how to write such an award.