How Victoria Associates is boosting my international practice

How Victoria Associates is boosting my international practice

By Duarte G Henriques

Perhaps the biggest challenge that I face as an international arbitration practitioner is myself. As you all may know, I’m born, brought up and educated in Portugal and in Portuguese law (or, from a negative point of view, I wasn’t born or educated in an English environment). 
This can represent a major hindrance for an international career. Let’s face it: in the international disputes arena, Portugal is largely peripheral; and if one doesn’t speak English at native level or if one isn’t educated in a common law system, the chances of getting appointments as arbitrator or being retained for arbitration cases located outside Portugal, are rather minimal. 

You have to take the cards you are dealt and the key is to take advantage of the situation and make it into a strong point as Portugal has done in various contexts such as the United Nations and the European Union. The Portuguese are known for their willingness to leave their comfort zone and explore the world taking advantage of what it offers to those who are hardy and courageous. Our people are known to be hard working, fair and reasonable. That is why I feel so comfortable being a part of Victoria Associates.

Having invested “tons” of hours in training and developed “international” skills throughout the years (which, in any event, has brought me very interesting international cases where I’ve been acted as counsel or arbitrator), the founding of Victoria Associates has been simply spectacular. 

Since the beginning of 2020, I’ve been approached a number of times to represent new clients and to serve as arbitrator in international cases. None related Portugal. No Portuguese language or seat, nor even the law of Portugal (or other Portuguese speaking countries). Truly international cases. 

Just to point out two recent cases, since January 2020 I was appointed as co-arbitrator and chairman in two arbitrations seated in Hong Kong (one “institutional” and the other “ad hoc”), the other arbitrators coming from London, Perth (coincidentally two of them), Hong Kong and Singapore. The parties come from different corners of the world. English law applies to both cases. And, it goes without saying, English is the language of the proceedings. 

Now, how did I accomplish that? Many factors contributed but Victoria Associates is the crowning touch, the factor which brings everything together.

Indeed, with the different international backgrounds and educations, and global reach, the members of Victoria Associates can work virtually everywhere, out of any country and under any law. 

All VA members embarked on this new venture with passion: We do what we like, and we like what we do!

And share the risks and rewards with our clients. 

Victoria Associates is already a tale of success, in spite of these troubled times. So it is more than appropriate to say: 

Embark with us!!!

Why Arbitrate in Portugal? Reason 7 – Supportive Courts

International Arbitration & Portugal

Supportive State Courts

In addition to the several previously mentioned advantages in regards to selecting Portugal as an all-encompassing jurisdiction for the resolution of international arbitration disputes, it is worthwhile mentioning the adaptive and supportive Portuguese state courts.

As touched upon in previous posts, Portugal shares historic and legal roots with other Lusophonic countries, which has been a critical factor in the selection of Portugal in the execution of bilateral agreements, making it appealing as a jurisdiction for international arbitration. These agreements have led to Portugal being considered as having supportive state courts within the realm of arbitration.

Courts in Portugal consistently adhere to the principle that the arbitral tribunals are competent to decide on their own competency. A number of cases related to swaps show that courts do not hesitate to refer parties to arbitration even in the event that there exist allegations that these contracts are null for violating public policy. Arbitral tribunals are sufficiently competent to decide on the costs of arbitration, and courts will only intervene where excessive situations occur. Arbitral awards are only set aside when there is a violation of public policy or other fundamental principles of arbitration – which is very rare!

The UNCITRAL Model Law contains the fundamental principles of party autonomy as well as all the legal tools necessary for the successful resolution of an international arbitration dispute. These tools, embodied within the Portuguese state court system, include equality of parties, due process as well as the finality of the award. Another advantage of this system entails the fact that any dispute can be subject to arbitration as long as it is not exclusively submitted to the state courts and concern economic interests. Disputes not involving economic interests can also be subject to arbitration so long as the dispute in question is capable of being subject to a settlement by the parties. The state court system also allows for the arbitration of issues concerning labor agreements, which in the past were only open for dispute within judicial courts.


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If you would like more information or have any questions regarding international arbitration in Portugal, please send us an email to info@victoria.associates and we will be in touch as soon as is possible.

Fourth Circuit held that parties can apply for discovery orders from federal district courts to support foreign seated commercial arbitration

Fourth Circuit held that parties can apply for discovery orders from federal district courts under Section 1782 to support foreign seated private arbitration – case note of Servotronics, Inc. v. Boeing Co., No. 18-2454 (4th Cir. March 30, 2020)

Tony Ng, Kathryn (Lee) Boyd and George Yates

The United States Court of Appeal for the Fourth Circuit has recently held that federal district courts can order discovery in support of foreign-seated private commercial arbitration under Section 28 U.S.C. § 1782. This decision, together with the Sixth Circuit in re Application to Obtain Discovery for Use in Foreign Proceedings, 939 F.3d 710, 723 (6th Cir. 2019), have created a split with the previous rulings of the Second and Fifth Circuits in which the courts held that federal district courts do not have the power to order discovery for private arbitration seated outside the US.

Circuit Court Decisions before Boeing

Section 1782 provides that a U.S. district court may, on the request of an interested party, provide assistance in connection with a proceeding before “a foreign or international tribunal” by ordering a person in its district to give his “testimony or statement or to produce a document or other thing” to support an arbitration. But can parties in foreign seated private arbitration obtain Section 1782 assistance? The issue will then be whether a private arbitral tribunal is a “foreign or international tribunal” under Section 1782.

i. Second and Fifth Circuits in Bear Stearns and Biedermann

In National Broadcasting Company, Inc. v. Bear Stearns & Co., Inc., 165 F.3d 184 (2d Cir. 1999) and Republic of Kazakhstan v. Biedermann International, 168 F.3d 880 (5th Cir. 1999), the Second and Fifth Circuits held that, in respect of arbitration,
Section 1782 assistance is only available to governmental or intergovernmental arbitral tribunals.

Those courts arrived at their conclusion by focusing on the absence in the legislative history of Section 1782 of any mention of private arbitral proceedings [1][2]. In particular, the Second Circuit considered that “significant congressional expansion of American judicial assistance to international arbitral panels created exclusively by private parties would not have been lightly undertaken by Congress without at least a mention of this legislative intention.[3]. Both the Fifth and Second Circuits also relied on several policy considerations to deny the expansion of Section 1782 assistance to private arbitration, including that such authorisation would undermine the efficiency of the arbitration proceedings [4].

ii. Sixth Circuit in re Application to Obtain Discovery for Use in Foreign Proceedings

Twenty years later in 2019, the Sixth Circuit veered from the Second and Fifth Circuits and held that a private commercial arbitration tribunal is a “foreign and international tribunal” under Section 1728.

The Sixth Circuit reached its conclusion mostly by a textual analysis of “foreign and international tribunal”. The Sixth Circuit consulted different dictionaries and judgments and concluded that the phrases “foreign tribunal” and “international tribunal” are not a “term of art with a specialized meaning[5] and that “tribunal” should cover private tribunals. Moreover, the Sixth Circuit noted that the Supreme Court decision Intel Corp. v. Advanced Micro Devices, Inc., 542 U.S. 241 (2004) will support its conclusion and that Intel “contains no limiting principle suggesting that the ordinary meaning of “tribunal” does not apply[6].

The Sixth Circuit expressed doubts in the approach by the Second and Fifth Circuits in Bear Stearns and Biedermann in overly relying on the absence of specific mention of private arbitral tribunals in the legislative history of Section 1782. It reasoned that “the Second and Fifth Circuits turned to legislative history too early in the interpretation process[7] and noted that “some scholars and judges have questioned the reliability of legislative history as an indicator of statutory meaning[8]. Even assuming the legislative history was helpful in the analysis, the Sixth Circuit considered that Congress intended to expand the applicability of Section 1728 and “the legislative history does not indicate that the expansion stopped short of private arbitration[9].

The Sixth Circuit also found the other policy considerations in Bear Stearns and Biedermann unpersuasive. For the consideration in efficiency of arbitration proceedings, the Sixth Circuit was of the view that a district court has the discretion to limit or reject intrusive or burdensome discovery requests [10].

Servotronics, Inc. v. Boeing Co.

After the Sixth Circuit’s decision of re Application, the Fourth Circuit has recently sided with the Sixth Circuit in the interpretation of Section 1728 in Boeing.

Servotronics supplied a valve to Rolls-Royce PLC. The latter installed the valve in an engine it manufactured. The engine was supplied to the Boeing Company for a new Boeing aircraft. During an engine test in January 2016, the engine caught fire and caused significant damage to the aircraft. Rolls-Royce settled Boeing’s claim for damages. Rolls-Royce contended that Servotronics’ valve caused the fire and commenced arbitration against Servotronics.

The arbitration was seated in Birmingham, UK. To obtain evidence for the arbitration, Servotronics filed an application under Section 1782 to obtain testimony from three Boeing employees residing in South Carolina.

The issue here was whether the UK tribunal was a “foreign tribunal” under Section 1782.

Relying on Bear Stearns and Biedermann, the district court ruled that the private arbitration between Servotronics and Rolls-Royce was not a “foreign tribunal” and denied Servotronics’ application. 

Servotronics appealed to the Fourth Circuit.

Decision of Fourth Circuit

The Fourth Circuit overturned the decision of the district court and concluded that the private arbitration in the UK was a “foreign tribunal” under Section 1782.

Unlike the Sixth Circuit, the Fourth Circuit did not carry out an extensive analysis of the reasoning of the Second and Fifth Circuits in Bear Stearns and Biedermann. It also did not approach the issue with a “textual analysis” of the wording of Section 1728.  Nevertheless, its reading of Intel is somewhat similar to the Sixth Circuit’s.

The Fourth Circuit’s decision turned on its analysis of the legislative history of Section 1782, in particular a 1964 amendment adding the language “a foreign or international tribunal” to the scope of the act [11]. The Court noted that the Supreme Court in Intel emphasised Congress’s insertion to a proposed amendment of “a foreign or international tribunal” to replace a previous version of “in any judicial proceeding pending in any court in a foreign country”. The Fourth Circuit noted that the Supreme Court considered that “Congress understood that its change would authorize U.S. assistance not only in connection with court proceedings but also “in connection with administrative and quasi-judicial proceedings abroad”[12]. The Fourth Circuit considered that the 1964 amendment “manifests Congress’ policy to increase international cooperation by providing U.S. assistance in resolving disputes before not only foreign courts but before all foreign and international tribunals[13].

Conclusion

The Fourth Circuit Court’s decision in Servotronics has concretized a pivotal departure in the interpretation of “foreign and international tribunals” from the decades old Second and Fifth Circuits’ limited reading of Section 1782 to apply only to proceedings before governmental or intergovernmental tribunals.

Servotronics reflects both the proliferation of private commercial arbitration in the recent past and U.S. courts’ growing acceptance and encouragement of arbitration for dispute resolution. We predict other courts will follow suit in a broad application of Section 1782, and perhaps obviate review by the Supreme Court, particularly given the Intel decision. In any case, we likely await final resolution of this issue by the Supreme Court.


[1] Republic of Kazakhstan v. Biedermann International, 168 F.3d 880 (5th Cir. 1999), 882

[2] National Broadcasting Company, Inc. v. Bear Stearns & Co., Inc., 165 F.3d 184 (2d Cir. 1999), 190

[3] Ibid, 190

[4] Biedermann, 883 and Bear Stearns, 190-191

[5] In re Application to Obtain Discovery for Use in Foreign Proceedings, 939 F.3d 710, 723 (6th Cir. 2019), 719

[6] Ibid, 726

[7] Ibid, 726

[8] Ibid, 727

[9] Ibid, 728

[10] Ibid, 729-730

[11] Servotronics, Inc. v. Boeing Co., No. 18-2454 (4th Cir. March 30, 2020), 209, 213

[12] Ibid, 213

[13] Ibid, 213


 

Why Arbitrate in Portugal? Reason 6 – A Robust Legal System

International Arbitration & Portuguese Law

A robust legal system

When selecting a jurisdiction for international arbitration, as noted in previous posts, there are several important factors to consider, among them, is the legal system of the country chosen. Portugal has recently implemented some changes to its legal system, including to international arbitration laws, which make it an alluring jurisdiction.

On the 14th of March 2012 the new Portuguese Voluntary Arbitration Law (PAL) came into effect and revoked the former, and more outdated, Portuguese arbitration law. The PAL is inspired by the Uncitral Model Law, and aims to introduce a more modernized system for arbitration and further promote Portugal as an appealing jurisdiction for international arbitration.

PAL provides for the most in-demand features ranging from the principle of separability of arbitration agreements as well as the competence of arbitral tribunals to decide on their own competence to the joinder of third parties, as well as the powers that are granted to arbitral tribunals to order interim measures in pending or about to start arbitrations. The general advantageous principles underlying the PAL are:

  • Party autonomy;
  • Kompetenz-kompetenz: the PAL confers jurisdiction on state courts to decide a dispute only where the arbitration agreement is manifestly null and void, inoperative or incapable of being performed;
  • Adhering to procedural principles such as, party equality, due and fair process, and the adversarial principle.

The principle of separability of the arbitration clause recognized by the PAL is also an advantage as a finding of nullity or unenforceability of the contract will not affect the validity of the arbitration clause.

Arbitral awards in Portugal are final and subject to no appeal. An annulment of the arbitral award may only be granted under very limited and special circumstances. This new arbitration law also provides for very constricted and limited circumstances under which a foreign arbitral award may be refused recognition and enforcement.

Portugal is a part of around 60 bilateral investment treaties, making it a prime location for the resolution of international arbitration cases from a varying and wide range of countries.  Portugal is also a signatory party to the most relevant international treaties related to arbitration, such as the New York Convention and the International Centre for Settlement of Investment Disputes (ICSID) Convention. Being a part of these various treaties makes it so that there is less legal confusion when selecting Portugal as a jurisdiction for arbitration.


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If you would like more information or have any questions regarding international arbitration in Portugal, please send an email to info@victoria.associates and we will be in touch as soon as is possible.

Why Arbitrate in Portugal? Reason 5 – Modern Country, Modern Facilities

Portugal & International Arbitration

Recently modernized infrastructures and facilities

Portugal is a developed country with many modern infrastructures and facilities. In recent times, Portugal has been considered a spearhead in terms of new technologies and IT solutions. This is especially relevant in terms of the fact that many of these new technologies have also been applied to the Portuguese judicial system.

Since the late 90’s, Portugal initiated a program to renovate and modernize its infrastructures, including court premises. The judicial system is supported by a modern IT infrastructure that allows almost every lawsuit to be managed online by court judges, court clerks and counsel. Almost every court judge will allow the taking of witness depositions via video-conferencing, including by Skype as well as other applications.

Portugal currently contains modern arbitration centres and state-of-the-art facilities to manage arbitrations and hold hearings. An example of those facilities may be found in the website of the Arbitration Centre of the Portuguese Chamber of Commerce and Industry (CAC) HERE.

Procedures before state courts are almost entirely managed through web-based platforms, the most important and notable of which is referred to as “Citius”, which was introduced by the Portuguese ministry of justice. Thanks to this web-based platform, paperless dockets have been a reality in Portugal for many years now. There are many other advantages of this platform including allowing for the submittal of court documents and decisions, as well as the consultation of proceedings by judges, lawyers and court clerks. Other advantages of this platform included notifications being provided online, as well as the logistical coordination of the proceedings themselves.

Arbitration has been benefiting from this new landscape, for example, if one party intends to begin arbitration and needs an interim measure; all that must be done is to file a request via the “Citius” web-based platform. The request will then arrive at the judge’s desk the following day. This online system works for every arbitration related matter that needs to be dealt with by state courts, with the exception of the Supreme Court of Justice.

What makes Portugal’s adaptation of modernized facilities and the usage of new technology in the judicial system is that not only has this greatly streamlined and facilitated the international arbitration dispute resolution process, but also that Portugal’s path to modernization, in comparison to other countries, has been less fraught with setbacks during this process.


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If you would like more information or have any questions regarding international arbitration in Portugal, please send us an email to info@victoria.associates and we will be in touch as soon as is possible.

Why Arbitrate in Portugal? Reason 4 – A Safe and Friendly Place

Portugal & International Arbitration

A safe, stable and reliable jurisdiction

Portugal, with its stable economic, political and legal systems has been growing increasing popular in the realm of being considered as an advantageous destination not only for tourism but also for the resolution of international arbitration disputes. Alongside this, Portugal is considered to be one of the safest countries in the world with a ranking as among the top 5 safest countries in the world, according to World Atlas.

With the recent destabilization in many European countries in regards to political, economic and even in terms of elevated terror threats, Portugal has remained among the very few which has remained stable in all these regards over the past years.

With the looming uncertainty of Brexit in the UK and the fact that the fate legal and political systems has been up in the air until the decision has been completely resolved, has deterred many from selecting the UK as a stable jurisdiction.

The rise of the extreme right in several other European countries has also served to destabilize not only their respective economies but has also brought uncertainty to the fate of their political and legal systems.

The rise of terrorism in Europe over the past few years in many countries has also served to dissuade many in seeking out these countries. There have been several significant terrorist attacks, and in some countries more than one attack, over the past decade alone in France, Germany, Norway, Ukraine, and the UK. Portugal’s terrorist threat index rate is the lowest within the EU, due to political, but also geographic reasons as it only borders Spain, with the other border being the Atlantic Ocean.

These considerations all factor into the selection of a safe and stable jurisdiction for the resolution of international arbitration disputes. Those who select Portugal as a jurisdiction have the peace of mind that at any given moment the political and legal systems won’t simply drastically change, thusly potentially negatively affecting the outcome of a successful resolution.

If you need more information, send us an email info@victoria.associates

Why Arbitrate in Portugal? Reason 3 – Legal Background

The Portuguese Legal Background & International Arbitration

Enduring legal ties between Lusophone Countries

The fact that the Portuguese Civil Code and Code of Civil Procedure are still in force in the Lusophone countries of Angola, Mozambique, Cape Verde, São Tomé Principe, and Guinea Bissau gives Portugal yet another advantage in terms of selecting a jurisdiction for international arbitration. These countries very closely follow, to this day, the Portuguese Case Law, meaning that Portuguese law is still very much embedded and relevant within their respective legal systems. Although these Lusophone countries have their own distinct identities, these countries still continue to share a strong historical and legal background.

Over the past decades many of the Lusophone countries have had their economies and respective investment opportunities grow substantially. Angola is considered to be one of the world’s top diamond producers as well as having many other investment opportunities in the realm of agriculture, construction and transportation sectors. Mozambique is another example with recently discovered natural gas reserves which has boosted, and is projected to continue to boost, its economy substantially. Macau is home to one of the largest gaming industries in the world, with total yearly revenue of about 28.9 billion US dollars. Among the aforementioned countries, Portugal itself is also quickly recovering from a financial crisis, and has been currently housing many technologically oriented startups due to currently having the lowest operational costs in Western Europe.

Due to the enduring legal ties and the rich economic and investment climate currently present within the Lusophone countries, Portugal poses as a strong platform for the resolution of international disputes. The fact that the legal ties still exist have shown to be a factor when deciding on the execution of bilateral agreements and in legal agreements between Lusophone countries and Portugal. Having a common language also eliminates the need for procedural translations and also ensures the trust amongst parties and arbitrators in dispute resolution.

Aside from this, and as mentioned in previous posts, Portugal is a member of the most important international arbitration conventions including the New York Convention of 1958.

The Commercial Arbitration Centre of the Portuguese Chamber of Commerce and Industry (CCIP), which was established in 1987, and has immense experience in the arbitrations of domestic and especially cross-border disputes involving Portuguese speaking countries.

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If you would like more information or have any questions regarding international arbitration in Portugal, please fill out the form below and we will be in touch as soon as is possible.

Why Arbitrate in Portugal? Reason 2 – Language

Language & International Arbitration

Portugal – a country with communication skills

The Language background

Language barriers are one of the most prominent cultural concerns when dealing with business matters in a foreign country, and this makes sense because a seemingly innocuous mishap in wording can lead to a failed business deal. This is even more relevant in the legal world, especially in regards to international arbitration where high stakes are involved.The language used in arbitration can have either a positive or negative impact on party equality since language plays a fundamental role not only during the written pleadings, but also and more importantly during the oral phases of the proceedings. Unfortunately, this is often overlooked and it is not uncommon that advocates and arbitrators find themselves at pains in understanding and showing command of the language used in the arbitration; thusly, this is a matter which should be carefully considered.Portugal has many attributes when it comes to the Portuguese language itself. Over 250 million people speak the Portuguese language throughout the world and it is currently considered to be the 6th most widely spoken language. Portugal also shares a great amount of cultural, economic and legal backgrounds which serve as a common tie between many other countries. Due to this, a large amount of commercial transactions worldwide deal with Portuguese speaking countries.Recently, Portugal has seen a substantial growth in terms of investment and capital flows, due to larger countries, such as Brazil and Angola viewing Portugal as a safe harbor for their investments.

Language to use in arbitration

Portuguese is of course the best language to use in arbitration involving parties from Portuguese speaking countries. But what happens when one of the parties (or both) do not speak Portuguese (but nevertheless consider the option to arbitrate in Portugal)?One may well say that Portugal is one of the countries within the EU well-known for its population having a good understanding and command of English. This is due to many reasons, but mostly due to the high importance that learning English is placed on the educational system as well as the fact that movies are subtitled, rather than dubbed as in many other Western European countries.As many Portuguese citizens are highly adept in their usage of English as a second language, with much of the population speaking relatively comprehensively, this means that when it comes to selecting a jurisdiction as well as the language of arbitration, there shouldn’t be any difficulties in regards to dealing with not just the legal system but also with locals, as well as in making other logistical arrangements.In other words, arbitrations in Portugal can interchangeably use Portuguese and English as working language.

Lisbon as an alternative to London after Brexit

Further, with the looming uncertainty of the end-result of Brexit, this has made the United Kingdom very unstable on many levels. With many legal aspects still to be ironed out in these proceedings, it might not be in the best interest to select the UK as a jurisdiction for international arbitration.It is important to highlight the importance of language when selecting a language for international arbitration. Portugal has many qualities which showcase it as an advantageous choice, with language being high on the list.

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If you would like more information or have any questions regarding international arbitration in Portugal, please send us an email to info@victoria.associates and we will be in touch as soon as is possible.

Why Arbitrate in Portugal? Reason 1: Geography

International Arbitration & Portugal’s Geography

An alluring and advantageous jurisdiction

Over the past few years Portugal has been quickly expanding in a number of areas without showing signs of its growth slowing down anytime soon. However, one key area in which Portugal may be overlooked is in regards to being selected as a jurisdiction for international arbitration. Portugal acts as a judicious platform for the resolution of disputes relating to arbitration for a number of reasons, with geography being at the top of the list.

Situated an ocean away from North and South America, and within close proximity to Africa and the rest of Europe, Portugal is a central hub for many who come from across the globe. When considering international arbitration between two countries separated by an ocean, such as Brazil and Angola for example, Lisbon may be considered, not only a fair and neutral jurisdiction, but more importantly a convenient location for both travelling parties.

The After-Brexit: Lisbon as an alternative seat to London

Also, with the ongoing controversy and uncertainty surrounding Brexit, Lisbon may be a sound geographical alternative for international arbitration. Not only is Lisbon a short flight away from London, the political atmosphere has been generally tranquil with no signs of leaving the EU anytime soon.

The Lusophonic legal world and Portugal’s Geography

The Lusophonic world is a vast one, where to this day, strong ties still exist amongst them. Alongside geographical considerations, the fact that the judicial systems of these countries are still very much embedded with the present-day Portuguese judicial system helps for the resolution of disputes in a less complicated, and often times in a timelier manner.

Beyond those pertaining to the Lusophonic world, however, there are many advantages in selecting Lisbon for its geography. Due to Portugal’s rapid growth over the past few years, there has been a large increase in the quantity of non-stop flights to Lisbon. Not only is it more convenient to be able to travel from varying parts of the world without having to deal with arduous layovers, but due to the increase in available flights, this has also proven to be oftentimes more cost-effective.

Lisbon has all the conditions necessary to become an attractive host for dispute resolution. Beyond the logistical considerations of the jurisdiction selected where international arbitration disputes are involved, the jurisdiction chosen may have a larger impact than one would initially realize, especially in regards to the terms of applicable procedural laws and enforcement.

Portugal is currently a member among the most important international arbitral conventions, including the 1958 New York Convention, the ICSID Convention, as well as having 60 Bilateral Investment Treaties (BIT’s) signed with other nations.

Geography plays an important role in regards to international dispute resolution due to the fact that the parties negotiating international contracts which contain arbitral clauses must also settle on a neutral place of arbitration. It is usually favorable for both parties involved to select a jurisdiction that is neutral, geographically easy to travel to and with a well developed arbitrational law and court system in place, all of which Portugal has, especially in regards to issues relating to enforcement under the New York Convention being unlikely to arise.

In next week’s blog post, the topic of Portugal as a place of international arbitration and language will be discussed, and not just in regards to the Portuguese language, but to prevalent usage of English within the country as well.

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If you would like more information or have any questions regarding international arbitration in Portugal, please send an email to info@victoria.associates

8 Advantages of Arbitrating Disputes in Portugal

A safe harbour for dispute resolution

Arbitration, in and of itself, has a long-standing history, having been practised by the Greeks and Romans, it is to this day still one of the most sought out methods of dispute resolution. In more recent decades, and alongside globalisation, international arbitration has been vastly growing in popularity for a number of reasons.

It is commonly said that arbitration can be less costly and less time consuming than litigation, especially in terms of international disputes. It is, however, less commonly known that arbitration is also beneficial and comes into play well before a problem may even arise. The decision to use arbitration occurs during the phase of contract negotiation, which also means that the right decisions must also be made from the very beginning in order to take full advantage of this means of dispute resolution.

With the current global climate as it stands, the country, or jurisdiction, one chooses to settle an international arbitration dispute can have heavy implications on the time, outcome, monetary gain, among other important matters. In recent years, Portugal has become an increasingly alluring haven in regards to arbitration dispute resolution.

Below are 8 advantages of choosing Portugal:

1. Geography – situated an ocean away from North and South America, and within close proximity to Africa, and the rest of Europe, Portugal is a central hub for many who come from across the globe. When considering international arbitration between two countries separated by an ocean, such as Brazil and Angola, Portugal may be considered a fair and neutral location.

2. Language – over 250 million people speak the Portuguese language throughout the world and is the 6th most widely spoken language. Portugal also shares a great amount of cultural, economic and legal backgrounds which serve as a common tie between many other countries. Due to this, a large amount of commercial transactions worldwide, deal with Portuguese speaking countries. Recently, Portugal has seen a substantial growth in terms of investment and capital flows, due to larger countries, such as Brazil and Angola viewing Portugal as a safe harbour for their investments.

3. Portuguese Legal Background – the Portuguese Civil Code and Civil Procedure are still in force in Angola. Mozambique, Cape Verde, São Tomé Principe, and Guinea Bissau. These countries very closely follow, to this day, the Portuguese Case Law, meaning that Portuguese law is still very much embedded and relevant within their respective legal systems.

4. Safe and Stable – Portugal is considered to be the safest of all the Portuguese speaking countries. Portuguese people are hospitable and warm by nature. Most Portuguese people speak an intermediate and comprehensive level of English, more so than most of the other European countries, simplifying communication. Due to Portugal being a member of the E.U. this has attracted a high level of foreign investment, especially from other Portuguese speaking countries.

5. Modern Facilities – Portugal is a modern country with many modern infrastructures and facilities. In recent times, Portugal has been considered a spearhead in terms of new technologies and IT solutions. Modern technologies have been also applied to the judicial system. Procedures before state courts are almost entirely managed through web-based platforms. Paperless dockets have been a reality in Portugal for many years now. Arbitration has been benefiting from this new landscape, for example, if one party intends to begin arbitration and needs an interim measure, all that must be done is to file a request via “Citius”, a web-based platform. The request will then arrive at the judge’s desk the following day. This online system works for every arbitration related matter that needs to be dealt with by state courts, with the exception of within courts of appeal and the Supreme Court of Justice.

6. Robust Legal System – Portugal has recently enacted a new arbitration law inspired by Uncitral Model Law. This is a modern law providing for the most in-demand features ranging from the principle of separability of arbitration agreements and the competence of arbitral tribunals to decide on their own competence to the joinder of third parties, as well as the powers that are granted to arbitral tribunals to order interim measures in pending or about to start arbitrations. Arbitral awards in Portugal are final and subject to no appeal. An annulment of the arbitral award may only be granted under very limited and special circumstances. This law also provides for very constricted and limited circumstances under which a foreign arbitral award may be refused recognition and enforcement. Portugal is also a signatory party to the most relevant international treaties related to arbitration, such as the New York Convention and the ICSID Convention. Portugal is also party to around 60 bilateral investment treaties.

7. Supportive State Courts – courts in Portugal consistently adhere to the principle that the arbitral tribunals are competent to decide on their own competency. A number of cases related to swaps show that courts do not hesitate to refer parties to arbitration even in the vent that there exist allegations that these contracts are null for violating public policy. Arbitral tribunals are sufficiently competent to decide on the costs of arbitration, courts will only intervene where excessive situation occur. Arbitral awards are only set aside when there is a violation of public policy or other fundamental principles of arbitration – which is very rare! Internationally accepted standards, such as the IBA Guidelines on conflicts of interests are also applied.

8. Internationally Oriented Community – in Portugal, international standards are applied when dealing with international arbitration cases. International events regularly take place in Portugal and shed new and innovative light on the topic at hand, including the ICC Portugal Arbitration Day, with the second edition having taken place during 2018. Portuguese practitioners also regularly publish articles in English, in order to reach a wider audience. The Portuguese arbitration community is in permanent contact with other communities including the Brazilian, Spanish and French colleagues.

The benefits of choosing Portugal for cases relating to international arbitration resolution go beyond the above-mentioned where the quality and likelihood for a favourable outcome are a high probability.

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If you would like more information or have any questions regarding international arbitration in Portugal, please send us an email to info@victoria.associates and we will be in touch as soon as is possible.