Mixing and Matching International Legal Systems and Dispute Resolution Methods -

Much has been written recently about the various dispute resolution methods used throughout the world in terms of their similarities and differences, the hybridization of different approaches and the possible harmonization of best practices. I was recently involved in a matter involving two very large international companies, common law and civil code legal systems, and distinctly different approaches to dispute resolution, which illustrate the advantages and practical utility of such experimentation.

This matter involved a $1.2 billion fast-track engineering, procurement and construction (EPC) contract to design, construct, commission and test a very complex urea ammonium nitrate fertilizer plant in North America for use by its owner/operator. Disputes amounting to $100 million arose between the parties, resulting in the filing of an International Chamber of Commerce (ICC) arbitration, a mechanic’s lien and a foreclosure. These issues were further complicated by the termination of the original contract and the reissuance of multiple cost-plus subcontracts to perform the terminated work, as well as the fact that each party had a series of partial ownership interests in the other.