data collection
data collection ()

Attorneys drafting international commercial arbitration clauses or preparing to advise clients on international disputes now have a potential reference point for projecting the likely outcome, cost and duration of international mediation and arbitration cases.

Large-scale detailed statistics on international commercial arbitration have been nonexistent because the commercial arbitrations, as opposed to investment arbitrations, are fully confidential and spread among dozens of organizations worldwide. Commercial arbitration institutions guard the information to maintain participant privacy.

But a South Carolina startup, Dispute Resolution Data, has signed agreements to collect information from some 20 arbitration institutions. To avoid the privacy issues, the institutions upload the data themselves before Dispute Resolution Data reviews the material, so that client names and details remain in the custody of the arbitral institution. The database went live for subscribers in December, with more than 66,000 data fields on thousands of closed arbitration cases, so far connected to 136 countries. More cases are being fed into the database daily.

“The ICC [International Chamber of Commerce Court of Arbitration] data is being put in as we speak,” said Dispute Resolution Data co-founder and CEO William K. Slate II. The iconic ICC International Court of Arbitration signed on in early December and handles some 800 to 1,000 international commercial arbitration cases worldwide each year.

With up to 100 data points on each closed commercial arbitration, and 45 data fields on each mediation, the database allows users to evaluate likely outcomes based on a host of variables, such as region, industry, average claim amount, award amount, case outcomes, whether national courts became involved and at what rate parties file or prevail in counterclaims. Users will not be able to directly compare one arbitral organization with another, and at least for the time being, they won’t be able to compare by country— only by region.

For instance, among five of the 28 types of international commercial arbitration cases tracked in Latin America, average case lengths ranged from 40 to 62 weeks. Arbitrations in the hospitality industry that resulted in awards lasted an average of 95.7 weeks, while arbitrations in the real estate industry that resulted in awards concluded much more quickly, lasting an average of just 34.7 weeks.

 


Chart for Arbitration Data. Average amount of time needed to resolve international commercial arbitrations in Latin America.

The database similarly offers subscribers statistics on the proportion of arbitrations in the various industries or categories that concluded in awards, settlements, withdrawals, dismissals and administrative closures. The database also includes information on whether attorneys used discovery methods, filed a counterclaim or if the matter was delayed by a national court, Slate said.

The information is useful to attorneys in determining the risk, likely time frame and budgeting realities of the options when advising clients on what to expect in a dispute, drafting contract dispute clauses and choosing between arbitration or mediation. The database is also being used by third-party litigation financers, academics in and outside the legal field, and the very arbitral institutions providing the information to the database.

To entice the arbitral institutions to contribute data, participating institutions get a free subscription, some financial compensation for manpower and a promise from the company not to release details of how many cases they handle or how they compare to other organizations. Many small international commercial arbitral institutions have only a few cases a year and carefully guard that information.

Participating institutions get to view their own analytics and compare themselves to aggregate statistics, which they can then use to promote their institution or improve on weak areas.

The database is available for 24 hours for a nominal fee. Law firms pay for a year’s subscription, as do educational and other noncommercial organizations, although they pay a reduced fee.

One of the insights the data has already laid bare is the success rate of international commercial mediation. In Latin America, mediation cases across all case types are successfully concluded 52 percent of the time. Among commercial contract cases specifically, the number of mediation cases successfully concluded reached 75 percent. Slate said the statistics will likely lead more attorneys to more often look to international commercial mediation and include the option in contracts.

“People are still warming up to how they are going to use it,” Slate said.

 

Copyright Daily Business Review. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Attorneys drafting international commercial arbitration clauses or preparing to advise clients on international disputes now have a potential reference point for projecting the likely outcome, cost and duration of international mediation and arbitration cases.

Large-scale detailed statistics on international commercial arbitration have been nonexistent because the commercial arbitrations, as opposed to investment arbitrations, are fully confidential and spread among dozens of organizations worldwide. Commercial arbitration institutions guard the information to maintain participant privacy.

But a South Carolina startup, Dispute Resolution Data, has signed agreements to collect information from some 20 arbitration institutions. To avoid the privacy issues, the institutions upload the data themselves before Dispute Resolution Data reviews the material, so that client names and details remain in the custody of the arbitral institution. The database went live for subscribers in December, with more than 66,000 data fields on thousands of closed arbitration cases, so far connected to 136 countries. More cases are being fed into the database daily.

“The ICC [International Chamber of Commerce Court of Arbitration] data is being put in as we speak,” said Dispute Resolution Data co-founder and CEO William K. Slate II. The iconic ICC International Court of Arbitration signed on in early December and handles some 800 to 1,000 international commercial arbitration cases worldwide each year.

With up to 100 data points on each closed commercial arbitration, and 45 data fields on each mediation, the database allows users to evaluate likely outcomes based on a host of variables, such as region, industry, average claim amount, award amount, case outcomes, whether national courts became involved and at what rate parties file or prevail in counterclaims. Users will not be able to directly compare one arbitral organization with another, and at least for the time being, they won’t be able to compare by country— only by region.

For instance, among five of the 28 types of international commercial arbitration cases tracked in Latin America, average case lengths ranged from 40 to 62 weeks. Arbitrations in the hospitality industry that resulted in awards lasted an average of 95.7 weeks, while arbitrations in the real estate industry that resulted in awards concluded much more quickly, lasting an average of just 34.7 weeks.

 


Chart for Arbitration Data. Average amount of time needed to resolve international commercial arbitrations in Latin America.

The database similarly offers subscribers statistics on the proportion of arbitrations in the various industries or categories that concluded in awards, settlements, withdrawals, dismissals and administrative closures. The database also includes information on whether attorneys used discovery methods, filed a counterclaim or if the matter was delayed by a national court, Slate said.

The information is useful to attorneys in determining the risk, likely time frame and budgeting realities of the options when advising clients on what to expect in a dispute, drafting contract dispute clauses and choosing between arbitration or mediation. The database is also being used by third-party litigation financers, academics in and outside the legal field, and the very arbitral institutions providing the information to the database.

To entice the arbitral institutions to contribute data, participating institutions get a free subscription, some financial compensation for manpower and a promise from the company not to release details of how many cases they handle or how they compare to other organizations. Many small international commercial arbitral institutions have only a few cases a year and carefully guard that information.

Participating institutions get to view their own analytics and compare themselves to aggregate statistics, which they can then use to promote their institution or improve on weak areas.

The database is available for 24 hours for a nominal fee. Law firms pay for a year’s subscription, as do educational and other noncommercial organizations, although they pay a reduced fee.

One of the insights the data has already laid bare is the success rate of international commercial mediation. In Latin America, mediation cases across all case types are successfully concluded 52 percent of the time. Among commercial contract cases specifically, the number of mediation cases successfully concluded reached 75 percent. Slate said the statistics will likely lead more attorneys to more often look to international commercial mediation and include the option in contracts.

“People are still warming up to how they are going to use it,” Slate said.

 

Copyright Daily Business Review. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.