What are the main methods of resolving commercial disputes?
Litigation & Dispute Resolution
Court litigation and arbitration are the most common methods of resolving commercial disputes in Sweden, with arbitration being the preferred method for major commercial disputes. Mediation is a method which has gained some popularity in recent years but it still remains a rarity.
The main method is still judicial, with the parties bringing their disputes to Court by means of different types of proceedings (Injunctions, Enforcement Proceedings, Declaratory Actions or others). However, as a result of the need for swift decisions, the demand for extrajudicial methods is increasing, with the parties using Arbitration, Mediation or Civil Courts/Justices of the Peace (that follow a simplified regime).
The main method of resolving commercial disputes is litigation before the local courts. However, there are other means of dispute resolution such as arbitration and the Dubai International Financial Court which is a free zone court.
The main method of resolving commercial disputes in Saudi Arabia is litigation before the Commercial Court, which became operational in October 2017 as successor to the Commercial Circuits of the Board of Grievances. The judges and judges and support staff of the Commercial Circuits of the Board of Grievances were transferred to the Commercial Court, thus ensuring continuity in the decision-making, but there now are considerably more commercial circuits and judges than before.
Certain types of commercial disputes must be submitted to specialized statutory tribunals, as follows:
- Disputes between banks and their customers are adjudicated by the Committee for Banking Disputes.
- The Committee for the Resolution of Securities Disputes has jurisdiction in disputes arising in connection with the Capital Market Regulation and related legislation.
- The Committee for the Determination of Financing Violations and Disputes has jurisdiction in disputes concerning real estate financings and other form of financing regulated under the Regulation for the Supervision of Finance Companies.
- The Committee for the Adjudication of Insurance Disputes and Violations has jurisdiction in disputes arising under contracts of insurance and claims to which insurers are subrogated.
- Complaints in respect of copyright infringements come under the jurisdiction of the Committee for the Adjudication of Copyright Disputes and Infringements of the Ministry of Culture and Information.
- Patent cases come under the jurisdiction of the Patents Committee of King Abdulaziz City for Science and Technology.
Until 2012, there was an automatic right to appeal from arbitration awards to the Board of Grievances, which made arbitration an unattractive option to resolve disputes. The enactment of the Arbitration Regulation of 2012, which is based on the UNCITRAL model, coupled with the establishment of the Saudi Center for Commercial Arbitration, is expected to make arbitration more popular in Saudi Arabia.
Most commercial disputes that are not solved amicably, are decided by the ordinary courts. All ordinary courts offer judicial mediation, which often leads to a settlement if both parties accept to try mediation. In some commercial disputes the parties have agreed on arbitration, in which case the arbitration tribunal will resolve the dispute.
In the United States, litigation, arbitration, mediation and informal negotiation are the primary dispute resolution methods. Mediation, in particular, has been quite popular, with 98 percent of companies reporting that they had participated in mediation during the prior three years based on a 2011 study.
The Austrian legal system provides two main dispute resolution methods: the ordinary court system and arbitration. In addition, other forms of alternative dispute resolution, in particular mediation, are also possible means for resolving commercial disputes.