INTERNATIONAL ARBITRATION 1/3LY
MARKET COMMENTARY 11
CLYDE & CO’S TOP TEN LEGAL TIPS: DISPUTE RESOLUTION
The financial pressures caused by the low oil price has led to a significant increase in the number of disputes in the industry, at all levels in the contractual chain. Set out below are some key points to keep in mind when considering litigation/arbitration.
01 PRE CONTRACT – carry out extensive credit checks and, if possible, obtain security 02 BE VIGILANT – keep a constant eye on unpaid 06 ADR – make sure you closely follow any contractual alternative dispute resolution procedures before commencing litigation/arbitration 03 KEEP CAREFUL RECORDS – document all phone calls and meetings and preserve all emails and documents 04 REVIEW CONTRACT TERMINATION PROVISIONS – in particular termination for cause – and follow the contractual notification process to the letter 05 DON’T DELAY – consider the choice of law and dispute resolution clauses and escalate the dispute resolution process sooner rather than later invoices and the changing financial status of the debtor
07 LOOK CAREFULLY AT ENFORCEMENT BEFORE SPENDING A LOT OF MONEY ON LITIGATION/ 08 IF THE COUNTERPARTY IS IN SERIOUS FINANCIAL DIFFICULTY, LITIGATION/ARBITRATION SHOULD BE COMMENCED AS QUICKLY AS POSSIBLE – it may be possible to obtain a judgment in default and enforce that (eg by a third party debt order or a charge over property or shares). Once enforcement is complete this may allow you to keep the recovery, as a secured creditor. However, if you do not complete enforcement before an insolvency process commences, you are usually part of the general body of unsecured creditors (and may make only a minimal recovery) ARBITRATION – there is nothing worse than a Pyrrhic victory 09 CONSIDER USING EXPEDITED PROCEDURES WITHIN THE RELEVANT ARBITRATION RULES OR RULES OF COURT – consider interim remedies, such as freezing of assets and security for costs 10 MANAGE THE LITIGATION/ARBITRATION CAREFULLY – through cost control and consideration of innovative litigation funding, such as third party funding or insurance backed products. Don’t throw good money after bad
Made with FlippingBook Annual report