Louisiana Arbitration Agreement with Foreign Company
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FAQ
International arbitration addresses any case or potential dispute between parties usually located in two different countries and is the most common form of alternative dispute resolution (ADR).
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.
International commercial arbitration is a means of resolving disputes arising under international commercial contracts. It is used as an alternative to litigation and is controlled primarily by the terms previously agreed upon by the contracting parties, rather than by national legislation or procedural rules.
Specifically as to arbitration agreements, despite a statute requiring them to be in writing, Louisiana law does not require the agreements to be signed to be enforceable.
Arbitration is an out-of-court method for resolving a dispute between a worker and an employer. Arbitration takes place in front of a neutral decision-maker called an arbitrator (or in some cases, a group or panel of arbitrators) who will listen to each side and make a decision about the case.
First, U.S. parties and those with close economic ties to the U.S. only rarely rely on arbitration. Whereas 25% of international agreements include arbitration clauses, 34% include clauses referring parties to domestic courts.
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.
An arbitration clause can be either binding or nonbinding. A binding arbitration clause means that the arbitrator's decision on a specific dispute will be final. The courts will enforce that decision, and neither party can appeal or fail to act according to the decision.
Under the Armendariz standards, an arbitration agreement will not be enforced in California if it is both "procedurally unconscionable" and "substantively unconscionable." Any arbitration agreement required as a condition of employment (i.e., any mandatory arbitration agreement) is automatically considered procedurally
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.
