International arbitration is, by its very nature, multi-jurisdictional. The international element could come from the parties being located in different jurisdictions, or perhaps having elected to refer disputes to a forum connected to a jurisdiction common to one, all or none of them. There are many factors that play into this decision. For example, one party may want ‘home court’ advantage, or be concerned as to the limit of remedies available in the jurisdiction where the underlying work is taking place. Another party may be more familiar with dispute resolution within a specific jurisdiction, or have easier access to resources if a dispute is determined in a certain place. The overlay to this is the governing law agreed between the parties – it is not unusual for an arbitration tribunal in one jurisdiction to determine a claim governed by the laws of another jurisdiction. The governing law and jurisdiction can be entirely unrelated to the location of the subject matter of the contract.
To read the full text of this post by Duane Morris attorney Chris Recker, please visit the Duane Morris International Arbitration Blog.