Australia is set to become a global player in the booming market for cross border dispute resolution following the opening of the Australian International Disputes Centre in Sydney.

Jointly funded by the Australian and NSW state governments and Australia’s only international arbitration administrator, the Australian Centre for International Commercial Arbitration, the state of the art facility will allow national and foreign companies to resolve commercial disputes outside the court system without resorting to costly and lengthy litigation.

A PricewaterhouseCoopers survey, International Arbitration: Corporate attitudes and practices, revealed 73% of corporations prefer to use arbitration to resolve their cross-border disputes rather than transnational litigation and saw arbitration as a means to successfully preserve business relationships.

ACICA President and Head of Clayton Utz’s International Arbitration and Major Projects Group, Professor Doug Jones AM said:

“International arbitration has emerged as the process of choice for businesses in the global economy. Investors want to avoid the uncertainty of litigation in a foreign court system with the associated lack of familiarity over processes and in some cases excessive time and costs. The decision concerning Chevron Corp is a recent example.”

In March, Chevron Corp was awarded $700 million by The Hague-based Permanent Court of International Arbitration that ruled in favour of its claim against Ecuador over past operations at its Texaco unit. The tribunal found that Ecuador’s courts delayed rulings on a contract dispute between Texaco and the Ecuadorian government, thus violating international law. Chevron was awarded principal damages and interest as of 22 December 2006, pending further proceedings to determine taxes, interest and costs. The ruling marked a victory for the USA’s second-largest energy company following four decades of escalating disputes over oil production in the South American nation.

The Centre has been endorsed by Australian business, with Chief Executive of the Australian Industry Group, Mrs Heather Ridout saying:

“Commercial disputes are a reality of doing business; minimising them and resolving them well is the key. The Centre’s emphasis on providing a world class facility and capability for resolution will be strongly welcomed and supported by Australian and regional business.”

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