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Today’s volatile macroeconomic environment is fertile ground for business disputes, with the depth of this uncertainty generating multiple dispute scenarios. Whatever the nature of a dispute – be it commercial or contractually orientated – it has the capacity to cause significant disruption for disputing parties, with cost, time and reputational consequences depending on the severity. Resolving a dispute as quickly, amicably and equitably as possible is therefore of paramount importance, and generally in the interest of all disputing parties.

UNITED STATES

Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates

“Global macroeconomic factors – such as geopolitical instability – have had a trickle-down effect generating many international commercial disputes involving US companies. For example, we have seen commercial arbitrations arising out of force majeure clauses where parties cite the ongoing wars in the Middle East and Ukraine to excuse performance. As a direct result of the Israel war, in one dispute, a party referenced Hamas’s October 2023 invasions as the reason why it was unable to supply necessary components as required under the parties’ contract.”

ARGENTINA

Marval O’Farrell Mairal

“Argentina’s principal challenge is to solidify its position as an arbitration-friendly hub for all types of disputes, from complex and cross-border contracts to domestic and simpler agreements. Several measures have recently been adopted in accordance with this goal. First, Argentina enacted the International Commercial Arbitration Law in 2018, mirroring the UNCITRAL Model Law with minor modifications. Second, Argentine courts have developed stable, uniform and predictable case law that interpreted this new framework in an arbitration-friendly fashion.”

UNITED KINGDOM

Milbank

“English courts, and the Competition Appeal Tribunal in particular, are currently handling a growing wave of competition class actions and other types of mass claims against financial institutions and large corporates. The growth in competition collective actions follows the Supreme Court’s decision in Merricks v Mastercard – in relation to interchange fees for card payments – in December 2020, which is generally considered to have made it easier for such claims to be brought.”

FRANCE

Lamartine Conseil

“The global economic climate has an undeniable impact on business in general, and on arbitration. While some arbitration practitioners witnessed a notable decrease in workload following the coronavirus (COVID-19) pandemic and the Ukrainian war, there has been a noticeable resurgence of activity, confirming that arbitration remains a preferred alternative dispute resolution technique. For instance, 2023 statistics from the International Chamber of Commerce have shown a substantial increase in the number of cases registered, with Paris remaining in the top spot of preferred seats of arbitration.”

SPAIN

Cuatrecasas

“In Spain, several challenges affect the efficiency and effectiveness of resolving commercial disputes. One of the primary concerns regarding the Spanish judicial system is the length of time it takes to resolve disputes. The excessive duration of judicial proceedings can be attributed to various factors, including procedural inefficiencies and a high volume of cases relative to the number of judges and courts available. That said, and despite there being room for improvement, the duration of Spanish proceedings is shorter than that of other European Union (EU) jurisdictions.”

CZECH REPUBLIC

Wolf Theiss

“As of 1 July 2024, the Czech Class Action Act implementing the EU Representative Action Directive came into force. This new law allows consumers and micro businesses to jointly commence a collective action in court through a representative against businesses for violation of consumer rights and protections. The action can be brought only by registered representatives – non-governmental organisations that are listed on a special list of representatives.”

UKRAINE

LCF Law Group

“Ongoing Russian aggression is the main challenge underlying the current realities in Ukraine, including around commercial disputes. Ukrainian state courts and arbitration institutions and Ukrainian businesses have faced serious challenges as their operations have been significantly burdened by constant rocket attacks, the destruction of critical infrastructure and subsequent blackouts. Nevertheless, this situation favours the development and search for new solutions, and Ukraine is currently making significant progress with the introduction and operation of an electronic court and the digitalisation of arbitration proceedings.”

MALAYSIA

Gan Partnership

“The main market challenge is companies’ cash flow. This is particularly prevalent among construction companies, many of which have only just recovered from the major economic setback caused by the coronavirus (COVID-19) pandemic. Many companies faced financial difficulties in recovering monies from debtors and making timely payments to creditors and employees, which eventually caused disputes to arise. This is where speedy dispute resolution and the execution of corporate rescue mechanisms are of paramount importance in Malaysia.”

SINGAPORE

Premier Law LLC

“The proliferation of artificial intelligence (AI) and its implications for the legal sector is a key focus in Singapore’s dispute resolution space. The topic was a highlight of Chief Justice Sundaresh Menon’s keynote address at the Litigation Conference 2024. Ethical concerns are particularly rife, such as bias in algorithms and the uneven playing field where only one side’s counsel has relied on the use of AI technology in their case strategy. The rapid and widespread use of AI pushes dispute resolution lawyers away from more traditional approaches in legal research and document discovery.”

SAUDI ARABIA

Quinn Emanuel Urquhart & Sullivan LLP

“Saudi Arabia has always been a thriving hub of commercial activity, both domestic and cross-border. The implementation of Vision 2030 and changes to associated economic policy continue to drive the current boom, as the country seeks to exponentially grow and diversify its economy. With various aspects of Vision 2030 being facilitated through the development of the built environment, it is that increase in project activity which defines so much of what else is happening in an increasingly competitive market. That is seen throughout all tiers of supply chains, and across industry sectors.”

SOUTH AFRICA

Herbert Smith Freehills

“Political uncertainty and changes in government policies have created challenges for businesses leading to disputes, particularly in sectors where government contracts or regulations play a significant role, as disputes arise over changes in government policies and contract cancellations. Corruption remains a major concern in South Africa, especially when there are allegations of bribery or fraud which may lead to the invalidation or administrative reviewability of contracts arising from government tenders. There has also been an uptake in alternative dispute resolution (ADR) mechanisms, such as arbitrations, due to serious backlogs in the South African courts.”

CONTRIBUTORS

Cuatrecasas

Gan Partnership

Herbert Smith Freehills

Lamartine Conseil

LCF Law Group

Marval O’Farrell Mairal

Milbank

Premier Law LLC

Quinn Emanuel Urquhart & Sullivan LLP

Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates

Wolf Theiss