Commercial arbitration in Japan is used less often than litigation as a means of resolving international disputes, despite the fact that Japan is a signatory to the New York Convention.
Meanwhile, dispute resolution in Japan through arbitration is gaining popularity. Arbitration rules have been amended lately so that arbitration is becoming more accessible to parties. A number of arbitration institutions are established with the Japanese association of commercial arbitration (JCAA) in the lead. Japanese arbitration is underestimated by foreign companies - the bulk of applications are still from Japanese businesses. Meanwhile, arbitration in Japan has many benefits. We will talk about some of them in this article and, perhaps, our arguments will convince you.
Key advantages of arbitration in Japan
The recently adopted Arbitration Law:
- Prescribes that both domestic and international arbitral awards are final.
- Ensures the possibility of enforcement of arbitral awards.
- Enables the decision to be enforced in Japan, even if it was made outside the country that is a signatory to the Convention.
- Does not provide for appeals of awards. The cancellation of awards is extremely rare.
When settling a commercial dispute in Japan, the positives also include limited disclosures, little written factual evidence to consider.
In Japan, one of the most technologically advanced countries in the world, electronic records of contracts have long been considered written.
How arbitrators are appointed
Typically, when a decision is made to initiate arbitration in Japan, an arbitrator will be proposed by arbitration institutions. Parties may well agree to adopt a list procedure concerning proposed candidates.
Most Japanese arbitration tribunals have a list of prospective candidates to offer, which includes not only legal professionals, but also business experts, as well as other narrow-profile specialists, so there is a lot of choice among the participants in the process. But the parties can also choose an arbitrator at their discretion. They also have cart blanc when tailoring the arbitration procedure to fit their needs and the dispute. Japanese courts have no right to intervene during the arbitration procedure.
Legal advice
To learn more about the conduct of arbitration in Japan, you can order advice on the resolution of international arbitration disputes in Japan from our company's arbitration solicitors.
The solicitors’ powers and duties are not limited to participation in the arbitration process. In a similar way, a legal professional prepares the necessary procedural documentation for specific cases, takes part in the pre-trial arbitration dispute settlement processes. Thus, the involvement of an arbitration solicitor provides for the possibility of resolving an international arbitration dispute without going to court on the cases under consideration or directly in the course of enforcement proceedings. And it is the solicitor who supervises the recovery after the arbitration process has been completed.
Our company employs highly qualified arbitration solicitors who specialize in various categories of arbitration disputes. We cooperate with many arbitration experts who have a successful practice of resolving disputes in arbitration courts, including in Japan, as well as with lawyers of other specializations.
