Why is arbitration preferred?
Compared to litigation (where a dispute is resolved with the assistance of the Courts), arbitration is preferred by most investors in Myanmar because:
- The arbitration process is faster (disputes may be heard immediately instead of waiting for a court date).
- An arbitrator is decided on by both parties as opposed to a judge who will be assigned by the Courts. For highly technical cases, this may be better, as the parties may appoint someone whose expertise and opinions/decisions they both respects.
- Arbitration costs are normally lower and limited to the arbitrator’s fees (depending on the size of the claim, expertise of the arbitrator and other legal expenses).
- Arbitration is confidential and not open to the public.
- Arbitration does not require full disclosure of documents from both parties (limited evidence process). No costly subpoenas, interrogatories or expensive discovery processes are needed.