A legal dispute of any kind can be stressful and damaging for each party involved, more so when a claim is brought against your business in a cross-border dispute. At the very minimum, there will be two jurisdictions and various international laws to contend with.
Your law firm may not be able to comply with legal matters in other jurisdictions. If you find yourself stuck in a cross-border dispute, you should seek advice from established litigation lawyers who are specially trained to handle these cases.
This guide will explore how cross-border disputes arise and some of the ways that these can be resolved.
What is a cross-border dispute?
Disputes can occur between two companies or a company and an individual. This is usually due to disagreements between shareholders, breaches of contract, insolvency and trade issues to name but a few.
A cross-border dispute can transpire if you have expanded your business overseas and a legal dispute occurs between you and a company in a different country. Difficulties can also result from cultural differences and expectations from foreign clients. Understanding how to work with clientele from other countries can help to offset the potential for disputes.
What factors must be considered during cross-border disputes?
When faced with a dispute brought against you from a business overseas, you must attain legal advice from a firm that relates to the jurisdiction in which the matter could be litigated. If you decide to go with a UK-based law firm, they may also instruct a foreign law firm to aid with the dispute.
Having to deal with several law firms can lead to a plethora of issues, including misunderstandings and time delays. This is why it’s important to choose a multi-jurisdictional and multi-lingual law firm to assist you in your cross-border dispute.
Jurisdiction is the term to describe the particular laws that apply in the country where the dispute is created. It can also refer to the authority given to the court to enact justice. The laws within each jurisdiction can vary significantly.
Commercial contracts will often integrate jurisdiction clauses that state where a dispute will be litigated if the dispute cannot be resolved. This means that the relevant parties involved will be informed of the jurisdiction and laws under which the dispute will be negotiated. It can also prevent one of the parties from commencing legal proceedings in an unfamiliar jurisdiction.
How can cross-border disputes be resolved?
Cross-border disputes are best left with experienced cross-border and litigation lawyers, who can easily help to settle the dispute. They can identify whether your contract has a jurisdiction clause or if a strategy needs to be created to navigate the different laws of the country where the dispute is taking place.
You could also try settling the dispute via alternative dispute resolution (ADR) before things escalate. Whether this is through arbitration or mediation, these steps can prevent matters from becoming hostile. Again, the law firm you decide to go with can help to build your case so that the dispute can be resolved as efficiently as possible.