THE NUMBER of commercial disputes held before international arbitral institutions were up by 16 per cent last year, according to new research, suggesting the recession was one of the main contributors to the rise.
Figures from law firm Hogan Lovells’ arbitration practice showed that arbitration bodies across the globe saw a flurry of commercial disputes last year.
Furthermore, in the fallout from the recession, the number of arbitrations held in London climbed by 30 per cent in 2009, putting the capitol at the top of the list for the highest number of cases heard as compared to a number of other countries.
Hogan Lovells said the rise in arbitration numbers is evidence that governmental bodies and businesses are increasingly turning to alternative means of dispute resolution, as well as traditional litigation, to resolve contentious matters.
“Given the increases across the board, there can be little doubt that more disputes are filtering through following the global economic downturn, and that this trend is evident across industry sectors and geographies,” said Michael Davison, co-head of the international arbitration practice at Hogan Lovells.