Commercial litigation vs arbitration in Ukraine
March 17, 2009 | BY
clpstaff &clp articlesMarkian M MalskyyArzinger & [email protected] business activity is subject to risk, but business partners often do not analyse…
Markian M Malskyy
Arzinger & Partners
All business activity is subject to risk, but business partners often do not analyse and attempt to minimise sources of possible future dispute. During this period of economic strain, when finance has become more difficult to access and corporate default is on the rise, disputes are clearly more likely to occur. Once a dispute has arisen, the goal of all parties is usually to achieve a settlement as efficiently as possible: Ukraine, due to its sometimes opaque or contradictory laws, is a jurisdiction where best results can only be achieved by recourse to specific experience, knowledge and skills.
Some commonly used methods of dispute resolution are: amicable settlement through mediation and conciliation; litigation; and arbitration. Although ADR (alternative dispute resolution) is increasingly being used as a settlement tool, Ukrainian businesses still normally choose litigation or arbitration in the event of a failure to reach amicable settlement.
Litigation
Litigation usually takes place when the parties have not agreed or decided on the method of dispute settlement. The choice of jurisdiction is