USA Law and Practice Contributed by: Matthew Kirtland, Timothy Tyler, Katie Connolly and Taylor LeMay, Norton Rose Fulbright US LLP
Norton Rose Fulbright US LLP 1550 Lamar Street Suite 2000 Houston TX 77010 USA Tel: +1 713 651 5151 Fax: +1 202 662 4643 Email: matthew.kirtland@nortonrosefulbright.com Web: www.nortonrosefulbright.com
1. General 1.1 Prevalence of Arbitration
1.2 Key Industries The following industries have continued to experience significant international arbitration activity in recent years: • technology; • construction/engineering; • energy; • financial services; • real estate; • entertainment; • life sciences; and • transportation and commodities. The arbitration institutions most frequently chosen by US parties have categorised the cases they administer according to the economic sector in which particu - lar arbitrations arise. In at least one institution, the last decade saw significant growth in transport and commodities cases, likely because of the significant price fluctuations in commodities like liquid natural gas (LNG), which have significant effects on related long-term contracts. • International Chamber of Commerce (ICC) (2024): (a) construction/engineering and energy (44%); (b) transportation (6.3%); (c) financing/insurance (5.8%); (d) telecoms/specialised technologies (5.8%); and (e) health/pharma/cosmetics (4.8%). • London Court of International Arbitration (LCIA) (2024): (a) transportation and commodities (29%); (b) banking and finance (17%);
Parties from the United States prefer international arbitration over any other method of dispute resolu - tion to resolve cross-border disputes, largely because of the enforceability of arbitration awards outside the United States under treaties such as the Convention on the Recognition and Enforcement of Foreign Arbi - tral Awards (New York Convention). Parties from outside the United States generally prefer to avoid litigation in US courts out of concern about the cost of US litigation, negative perceptions of US discovery, and the uncertainty inherent in jury trials in civil matters. Parties both from inside and outside the United States often seat arbitrations within the United States (eg, New York) because local courts support arbitration, offer a neutral legal system, and have a strong record of enforcing arbitration agreements and awards. In addition, many US cities have a long history of arbi - tration, with available resources and knowledgeable local counsel. Finally, because of the importance of the United States in global commerce and finance, enforcement of awards often happens in the United States, and many US courts are familiar with such actions brought under the New York Convention and other enforce - ment regimes.
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