New York is ranked as the third most popular place in the world for international arbitrations, according to the International Chamber of Commerce.
And by a landslide, New York is the most frequently used venue in the United States for international arbitrations, based on 2018 statistics released by the American Arbitration Association’s International Centre for Dispute Resolution.
New York’s success in the international arbitration market is – in no small part – due to the success of the New York International Arbitration Center (NYIAC) located in the heart of Manhattan.
In 2011, the New York State Bar Association Task Force on New York Law in International Matters called for the creation of a permanent center for international arbitration in New York. By the spring of 2013, NYIAC opened its premier facility through private funding from NYSBA’s Dispute Resolution and International sections, as well as many other market-leading law firms.
Located at 150 East 42nd St., the nonprofit organization is a prime destination for international arbitration hearings, mediation proceedings and conferences of all kinds. NYIAC provides world-class hearing rooms, breakout rooms and other amenities for arbitrations of any size, including large and multi-party arbitrations. The facility has full technological capabilities, such as high-tech video conferencing and simultaneous interpretation for a seamless experience. This allows the parties and counsel to focus on the matters at hand.
NYIAC also serves as a valuable resource to the international arbitration community worldwide by providing arbitration resources, such as alert memos on important issues within international law, a case law library of U.S. arbitration-related decisions impacting the practice at the state and federal level, a diversity corner, a weekly calendar of arbitration events in New York and around the world, institutional rules and model clauses, and other research. NYIAC also sponsors numerous programs that inform the community about hot topics in international arbitration and they coordinate with United Nations representatives to bring the latest arbitration-related developments at the UN to New York-based practitioners.
“NYIAC has played a unique role in developing New York as a seat for international arbitration and the selection of New York law for international contracts,” said Edna Sussman, NYIAC chair and an independent arbitrator and mediator. “The statistics demonstrate the success NYIAC has achieved in accomplishing these objectives.
“The years have proven the wisdom of NYSBA’s Task Force on New York Law in International Matters’ recommendation that a center be established for international arbitration,” Sussman continued. “That vision, transformed into a reality, has accomplished every goal. We look forward to continuing our engagement with the global international arbitration community and our New York-based practitioners as we build upon NYIAC’s successes.”
Through the success of NYIAC in New York, the U.S. rose to the third most frequently chosen locale for arbitration in 2018- behind only Paris and London, according to the International Court of Arbitration of the International Chamber of Commerce (ICC). Eighty new ICC cases were seated in the United States, an increase of 33% from 2015 with more than half of new cases nationwide being seated in New York City. This was a significant jump in just a year, as New York was ranked sixth in 2017. Additionally, in contracts with a U.S. choice of law, at least half selected New York governing law, confirming New York’s well-known predictability and fairness.
The American Arbitration Association’s International Centre for Dispute Resolution similarly reports New York’s dominance, as 993 new cases were filed with them in 2018 involving 1,828 parties from all over the world with claims valued at $8.2 billion. New York’s case load dominated by a significant margin with 324 cases in New York followed by Miami with 132, Houston with 34 and Los Angeles with 22.
“There has long been an ‘I Love New York’ campaign in the international community in New York, as the global epicenter of business and commerce,” said Rekha Rangachari, NYIAC’s executive director. “NYIAC’s place within this community is special, offering a gathering point for all within the international law arena. It is both our privilege and pleasure to work at broadening our reach, with several collaborative agreements with leading international arbitral institutions, as we create best practices in our shared space.”