International Arbitration vs. Court: What’s Better for Business?

When signing an international contract, a fundamental question arises: where should the dispute be resolved in case of conflict?
Each party usually insists on the court of its own country, where it is more familiar with the legal system.
However, for Ukrainian businesses, there is one more crucial factor — the enforceability of a court decision abroad.
Companies often hesitate between going to state court or arbitration.

🔹 Arbitral awards are easier to enforce abroad thanks to the 1958 New York Convention, signed by 166 countries.
🔹 Arbitration is more predictable and flexible than state courts.
🔹 It reduces the risk of political or administrative pressure on decision-makers.

✅ Challenges based on the invalidity of the arbitration agreement.
✅ Challenges due to procedural violations.
✅ Applications for enforcement of arbitral awards.
⚠️ National courts are not allowed to review arbitral decisions on the merits!

✅ Appointment of arbitrators if one party refuses.
✅ Issuance of interim measures at the request of parties.
✅ Court assistance in gathering evidence.

Unlike public court hearings, arbitration sessions are held behind closed doors.
This protects trade secrets and the reputation of the parties.

✅ Choice of procedure.
✅ Language of proceedings.
✅ Location of hearings.
✅ Rules for presenting evidence.

📌 Arbitral decisions are not subject to appeal.
📌 They can only be annulled on limited procedural grounds.

📌 Signatory states must enforce arbitral awards, even if issued abroad.
📌 Refusal is possible only under exceptional grounds defined by the Convention.

✅ Choose arbitration over court litigation — it’s more effective.
✅ The New York Convention ensures global recognition of awards.
✅ Arbitration offers flexibility, confidentiality, and independence.

📩 Need advice on international arbitration? Contact our legal team.

✉ Email: kyiv@jvs.law
📞 Phone: +380 (67) 465-77-73