Colorado Arbitration Agreement with Foreign Company
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FAQ
Perhaps the foremost advantage of international arbitration over litigation is that an international arbitral award is enforceable virtually worldwide, while a judgment from a national court is oftentimes only enforceable in the nation that issued it.
While parties are not required to have an attorney to participate in arbitration, arbitration is a final, legally-binding process that may impact a party's rights. As such, parties may want to consider consulting an attorney at any time before, during, or after the arbitration.
Arbitration can be binding (which means the participants must follow the arbitrator's decision and courts will enforce it) or nonbinding (meaning either party is free to reject the arbitrator's decision and take the dispute to court, as if the arbitration had never taken place).
To enforce the right to arbitrate, the party must then file a motion to stay the lawsuit in favor of arbitration. If both parties to the agreement ignore the right to arbitrate, the right is waived.
International arbitration is arbitration between companies or individuals in different states, usually by including a provision for future disputes in a contract.
If agreed to by the parties in their underlying agreement, Arbitration Awards are legally binding, meaning that if one is issued against you, it is legally recognized and may be reduced to an enforceable judgment by the courts.
The award is the decision of the arbitrator on the matters submitted to him or her under the arbitration agreement. If there is more than one arbitrator, the majority decision is binding.
Arbitration is favored by the Federal Arbitration Act and similar state laws, and arbitration agreements, if properly drafted and administered, are enforceable under those laws. Arbitration agreements are governed primarily by contract law and the arbitrator must comply with the terms of the arbitration agreement.
