Is an arbitration award easier to enforce abroad than a court judgment?

Often yes. The New York Convention obliges over 170 states to recognise and enforce foreign arbitral awards, frequently making cross-border enforcement smoother than for court judgments.

Is arbitration always confidential?

Not automatically. Confidentiality depends on the institutional rules and any express agreement. Under NAI rules there is a default confidentiality obligation, but parties should make this explicit in the arbitration clause.

Can a court still grant interim relief when there is an arbitration clause?

Yes. Under Dutch law (Rv art. 1022a) a state court can grant urgent interim measures even where an arbitration clause applies. Many institutional rules also allow emergency arbitrator procedures.

What is the difference between institutional and ad hoc arbitration?

Institutional arbitration is administered by a body (NAI, ICC, LCIA) that manages appointments, fees, and procedure. Ad hoc arbitration is run by the parties themselves under agreed rules such as UNCITRAL, without institutional support.

Can an arbitration clause be invalid?

Yes, if it is pathological (e.g. names a non-existent institution, omits essential elements), if one party lacked capacity to agree, or if the dispute falls outside arbitrable subject matter under the applicable law.

Arbitration

Private dispute resolution by one or more arbitrators whose award binds the parties.

Definición

Arbitration is a confidential alternative to court litigation in which the parties appoint neutral arbitrators to issue a binding award. It is valued for confidentiality, expertise, and cross-border enforceability under the New York Convention. In the Netherlands, arbitration is governed by Book 4 of the Code of Civil Procedure (Wetboek van Burgerlijke Rechtsvordering), and institutions such as the NAI are commonly chosen.

Ejemplo

A construction joint venture agrees that disputes will be settled by NAI arbitration in Rotterdam rather than in the ordinary courts.

Por qué es un riesgo para la empresa

Choosing arbitration without understanding its costs and timeline can be a nasty surprise. Arbitration is typically faster and more confidential than litigation, but institutional fees and arbitrator costs can exceed court fees significantly, especially for smaller disputes. A poorly drafted arbitration clause that names an institution that no longer exists, or omits the seat, can paralyse proceedings before they start.

Cómo gestionarlo

Use the model clause of the chosen institution (NAI, ICC, LCIA) verbatim: these are tested and avoid procedural challenges.
Specify the seat (place of arbitration), language, and number of arbitrators: three for large disputes, one to control costs for smaller claims.
Consider adding an escalation step (negotiation or mediation) before arbitration to encourage early settlement.
Check that emergency arbitrator provisions are available if you may need urgent interim relief.

Referencias legales

Rv Boek 4 (art. 1020 e.v.) Dutch Code of Civil Procedure: arbitration Derecho neerlandés

Salvo indicación en contrario, las referencias remiten al derecho neerlandés (Burgerlijk Wetboek, el Código Civil neerlandés); los instrumentos de la UE como el RGPD se aplican en toda la UE. Se trata de información general, no de asesoramiento legal. Otras jurisdicciones tratan estos conceptos de forma distinta. Verifique el texto vigente y su situación con un abogado cualificado.

Preguntas frecuentes

Preguntas comunes sobre este término.