The problems with dispute settlement may be efficiently avoided by using the arbitration clause of the Kazakhstani International Arbitrage in contracts with both Kazakhstan and international counterparties.
Include the clause or lose!
The Kazakhstani International Arbitrage (KIA) is a permanent arbitration institution which considers disputes between both residents of Kazakhstan and nonresidents. The KIA may act both as a local arbitration tribunal according to the Law of RK dated 28 December 2004 On arbitration tribunals and as an international arbitration tribunal according to the Law of RK dated 28 December 2004 On international commercial arbitration. The procedures for dispute settlement are the same for both local and international commercial arbitration. The jurisdiction in each case is defined on the basis of residency: the disputes between the residents are considered in accordance with the Law On arbitration tribunals, while disputes between parties, at least one of which is a nonresident, are considered following the provisions of the Law On international commercial arbitration. Unlike state courts the KIA offers the litigants the following advantages:
- impartiality, confidentiality and objectivity;
- choice of arbitrators by each party;
- expedient and efficient dispute resolution;
- legal and well-reasoned award; and
- legally binding enforcement of arbitral award.
Nowadays inclusion of arbitration agreements to international business contracts is a usual practice, and international commercial arbitration is a dominating mechanism of settling dispute between companies originating from various states as contrasted with state courts. All over the world the arbitral award is easier to enforce rather than foreign court decisions. This is so due to the availability of a number of international treaties, the main of which is the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards (1958). Kazakhstan acceded to this Convention on 4th October 1995. Along with that there are only a few regional conventions that are applicable to enforcement of foreign court decisions. It is obvious that the business would prefer to file its claims with arbitration tribunals rather than state (national and foreign) courts. If the dispute is considered by a foreign state (arbitration) court, a Kazakhstani company will be forced to litigate in a foreign state, in a different legal system, in which its counterparty will be no doubt better oriented. Next, if the dispute is considered by the Kazakhstan state court, its decision will hardly have a chance to be enforced in another state because there is no global system of international treaties that would provide for mandatory enforcement of state court decisions on the territory of another state.
All these and other problems may be efficiently avoided by using the arbitration clause of the Kazakhstani International Arbitrage in contracts with both Kazakhstan and international counterparties.
The form of the application form for participation in the Round table.doc
the Form of the application form for participation in Competition for legal persons.doc
the Form of the application form for participation in Competition for physical persons.doc
Sincerely yours,
M.K. Suleimenov
KIA Chairman,
Academician of the National Academy of Sciences,
Doctor of Laws, Professor.
