Recent Developments in Third Party Funding Disclosures: A Concrete Move Toward Greater Transparency in Commercial Arbitration

Third-party funding or litigation finance agreements have become increasingly popular and accepted methods to finance commercial disputes. While some U.S. jurisdictions prohibit enforcement of finance agreements under champerty and similar laws, the majority of jurisdictions now permit them. Examples of champerty state law restrictions on enforcement of funding agreements are discussed in my recent article titled Champerty re-emerges: an overview of recent US Circuit Court rulings on third-party funding appearing in the May 2020 Issue of the IBA’s International Litigation News.

Read more

Canada: Mediator Selection: Skills Often More Important Than Expertise

As per Rule 24.1 of Ontario's Rules of Civil Procedure, certain court proceedings in Ontario are subject to mandatory mediation. Even if it is not mandatory in a particular proceeding, mediation is a form of alternate dispute resolution that parties may want to consider to avoid a full trial, reduce the costs of litigation, and hopefully arrive at a settlement that is agreeable to everyone involved. Whether or not a mediation is successful is, in large part, dependant on the choice of mediator.

Read more

Agreement on “non-binding” arbitration not an arbitration agreement

An agreement to submit to non-binding arbitration is not an enforceable arbitration agreement under the English Arbitration Act 1996. The court dismissed an application for stay of English court proceedings under s9, citing absence of a valid arbitration agreement between the parties. The court held that an arbitration agreement must provide for a binding determination of disputes: IS Prime Ltd v (1) TF Global Markets (UK) Ltd (2) TF Global Markets (AUST) PTY LTD (3) Think Capital Ltd(2020) [2020] EWHC 3375 (Comm)

Read more

Predictions for the New Year in Commercial Disputes, International Arbitration, and Judgment Enforcement

First Tuesday Update is our monthly take on current issues in commercial disputes, international arbitration, and judgment enforcement.

As we focus on the New Year and a new Biden administration, we make a prediction in each area we cover. In commercial disputes, we believe that a Biden administration is likely to suspend the private right to bring claims under the Helms-Burton Act. In international arbitration, despite some of Biden's statements to the contrary during the campaign, we believe there are likely to be more trade deals and perhaps some reform to the system of settling investment disputes, but international arbitration is here to stay. Finally, in judgment enforcement, we predict that with the continued presence of COVID-19, the states and perhaps even the federal government will limit or preclude certain judgment enforcement tools intended to protect consumers, but the limits could have broader implications.

Read more

Could Google really leave Australia?

The government is introducing a law to address a long-bubbling row over whether tech giants should pay for news that appears in search or is shared on their platforms.

The proposed law would mandate that Google has commercial agreements with every news organisation - or enter forced arbitration, something Google says is "unworkable".

"If this version of the code were to become law, it would give us no real choice but to stop making Google Search available in Australia," the regional director, Mel Silva, said.

Australian Prime Minister Scott Morrison told Google: "We don't respond to threats".

Read more

What are some of the most common commercial contract disputes that have arisen over the past year?

“Many businesses have been left with unpaid invoices due the financial implications of the pandemic. There has also been an increase in disputes resulting from companies struggling to meet contractual obligations for a number of reasons, sometimes outside their control. For example, goods being held up in other countries, the inability to continue work due to government restrictions or one party to the contract triggering their force majeure clause.

Read more

Mediating joint venture disputes

India has been on an unabated growth trajectory - supported by a Gross Domestic Product (GDP) of nearly US$11.5 trillion (S$15.9 trillion). India is also the world’s third largest economy after China and the United States, according to 2019 International Monetary Fund estimates. Rising affluence and growing urbanisation in India has attracted investors who are keen to tap on India’s elite and affluent households - two of the fastest-growing income segments in the country, expected to double to 16 percent of the population by 2025. The rapid growth of India has not stopped despite the COVID-19 pandemic. Indeed, the authors continue to observe increasing number of investments in tech-related start-ups in India by foreign venture capital funds and institutional investors and also the shift in supply chains with more companies looking to set up their manufacturing plants and factories in India, even in the last 6 months

Read more

NAFTA Energy Arbitrations

The North American Free Trade Agreement (NAFTA) came to an end on 1 July 2020. After 24 years, it has been replaced by a new agreement called the Canada-United States-Mexico Agreement. The main impact as far as the energy sector is concerned was elimination of the famous Chapter 11 dispute resolution provision. Chapter 11 of NAFTA gave private investors the right to bring claims directly and unilaterally in the host country. This was unique at the time when the arbitration world was dominated by state-to-state proceeding.

Read more

Federal Court Rules That Instacart Workers Cannot Escape Arbitration Despite FAA Argument

A federal district court in Illinois just ruled that a proposed class of gig economy delivery drivers and paid shoppers must individually arbitrate their claims that they were misclassified as independent contractors, rejecting an attempt to escape arbitration that has been successful in other parts of the country. This December 21 decision means that Instacart will be able to litigate claims over minimum wages, overtime compensation, and other benefits in its preferred forum – and is another piece in an increasingly fractured national puzzle over a critical issue, which could lead to Supreme Court intervention in 2021. Why is this decision important and how might it work in your favor?

Read more

How to avoid unpleasant surprises with arbitral award

The globalization of markets and capital has led to the complication and internationalization of Ukrainian business. It is already a rarity when a business has no relations with foreign partners and contractors.

For predictability of outcomes of contractual conflicts, international arbitration has become a frequent choice for business, which allows to independently determine not only arbitrators, but also the rules for resolving disputes and applicable legislation. In fact, already at the stage of concluding a contract, the parties can envisage the institution or persons), to whom they are ready to entrust the resolution of disputes. They can determine the rules according to which they want the dispute to be considered, understanding in advance the specifi

Read more

What are some of the most common commercial contract disputes that have arisen over the past year?

“Many businesses have been left with unpaid invoices due the financial implications of the pandemic. There has also been an increase in disputes resulting from companies struggling to meet contractual obligations for a number of reasons, sometimes outside their control. For example, goods being held up in other countries, the inability to continue work due to government restrictions or one party to the contract triggering their force majeure clause.

Read more

Is Your Company Accidentally Granting Implied Copyright Licenses?

A recent spate of athlete-driven cases show courts are willing to let alleged copyright infringers defend these suits by claiming they have implied licenses. This could mean long, costly lawsuits for copyright holders.

In June 2019, Kawhi Leonard made a case that he was the best basketball player in the world by leading the Toronto Raptors to the NBA title. That same month, Leonard sued Nike over control of a claw logo he and Nike used to promote his brand before Leonard left Nike for New Balance.

Read more

Coronavirus Litigation: The Week In Review

Law360 (December 10, 2020, 7:54 PM EST) -- A distributor of personal protective equipment has lodged a $3 million suit over a botched medical gown order, the Chicago Teachers Union is trying to keep public schools from reopening without agreed-upon coronavirus safety standards, and a bid to block the New York governor's "food curfew" has appeared to sputter in the Second Circuit.

Read more