The issue comes-up regularly given the large number of international companies doing business here in Miami.

While my adversary and I had a firm grasp of the issues involved, the judge wanted to take some additional time to review the case law cited in our briefs before making a decision.

And that’s no surprise.

It can be difficult for a judge to keep up with all the nuances of international business litigation.

In the past year alone, there have been a number of major decisions that have reshaped forum non conveniens analysis.

I mention all this because the American Society for International Law recently released its Benchbook on International Law.

It’s a great resource for judges to quickly get up to speed on the fast-changing international law landscape.

While the benchbook was designed for district and state court judges, it’s also an excellent resource for:

Magistrate Judges who may handle discovery and similar matters in the first instance; federal appellate judges who review the work of the district courts; state court judges whose docket includes disputes for which there is concurrent federal-state jurisdiction; administrative law judges; law clerks, legal assistants, and staff attorneys who serve the judiciary; and litigants who seek clearly and accurately to present to judges pertinent issues of international law.

The international law benchbook is a great reference tool for anyone looking to keep up with international law issues in the United States.

You can view or download a copy below:

International Law Guide for U.S. Judges and Attorneys

The post The Ultimate International Law Guide for U.S. Judges–And Attorneys! appeared first on International Business Law Advisor.

Whether its resolving a dispute between parties in Zurich and Saudi Arabia or closing a deal between joint partners in Singapore and London, it’s the relationship-building that is the most fulfilling.

While working on international matters is an ideal way to connect, I’ve found that LinkedIn’s Influencer platform is also a great way to build relationships with international business leaders all over the world.

How to Connect with International Business Leaders on LinkedIn

LinkedIn Influencers are people who LinkedIn recognizes as industry leaders. There are now over 300 Influencers including Richard Branson, Mark Cuban, Deepak Chopra, Jack Welch, and many others.

By “following” Influencers, you can read, like, comment directly, and share Influencer content with your network.

But with so many incredible Influencers to choose from, identifying which industry leader to follow can be overwhelming.

That’s why I developed the Periodic Tables of LinkedIn Influencers.

The Periodic Table of LinkedIn Influencers

It’s a quick and easy way to identify the Top 120 Influencers to follow. The table also includes a 7-step guide to engage and connect with key Influencers.

To get you on your way towards Influencer stardom, take a few minutes to glance over the Periodic Table of LinkedIn Influencers and select several of them to follow –just click to magnify:

After you’ve selected several Influencers to follow, head over to the influencer’s LinkedIn Profile and website.

By doing so, you’ll get a good idea of the things they’re most passionate about. It could be anything from international business, foreign affairs or non-profit work.

This will lay the groundwork for you to engage and connect with international business leaders from all around the world.

Follow these steps, and soon you’ll be an international business leader too.

The post Connecting with International Business Leaders is Elementary: Start with the Periodic Table of LinkedIn Influencers. appeared first on International Business Law Advisor.

“I have a problem,” the caller said to me.

“Our company’s textile factory in Vietnam has been sitting idle for several weeks.”

The caller explained that it’s cotton supplier was unable to clear its shipping documents with customs officials.

I asked whether the company had a back-up plan to find an alternative supply.

“No,” replied the caller. “We didn’t think we’d ever need one.”

The Cause of the Problem.

I soon learned that the company handled everything in-house and lacked the industry expertise to  handle a last-minute logistics crisis like this one.

Ultimately the situation was  resolved.

But not without some major headaches and significant financial losses.

The Solution

Not wanting to suffer through another supply chain crisis, the company made the wise decision to outsource its exports to a Third-Party Logistics Provider or “3PL.”

The company’s executives now have peace of mind knowing that its 3PL will quickly and efficiently resolve any supply chain issues  that may arise in a matter of days instead of weeks.

So, What is a 3PL Anyway?

A 3PL is a company that works with shippers to manage their logistics operations.

Logistics can include elements of warehousing, transportation management software, freight rate negotiation, in-depth reporting, forecasting, freight bill auditing and much more.

There are many 3PLs in the market that have different models and perform different tasks. Some 3PLs will specialize in certain industries, fresh flowers for example.

Others might specialize in one specific area of logistics such as handling shipping documents, warehousing or providing logistics related software.

What Are the Benefits of a 3PL?

There are a few basic reasons why 3PL’s are valuable for a company no matter what their needs may be;

Depending on a customer’s need, a 3PL can:

• coordinate the shipment of goods from the factory,
• arrange to have cargo loaded onto the vessel and process the documentation on the shipment.
• navigate through U.S. export regulations, as well as the import rules and regulations of the countries that the goods are being shipped to,
•  find alternative methods of shipping, and
• handle all documentation connected with foreign trade.

The reasons listed above are just a small part of what a 3PL can offer a company looking to save money on freight costs, but not lose out on customer service.

     It’s Always a Wise Decision to Use a 3PL for All Your Shipping Needs.”

 

How Do I Chose the Right 3PL?

It’s important to do your research and interview several firms to get a feel for which one will be the best fit.

There are a variety of questions you can ask to find out which 3PL would best suit your needs:

• Do you have experience with similar products and industries? It is important to find a provider that understands the challenges unique to your industry, products, customers, and organizational goals.

• What differentiates you from your competitors?   Some fulfillment providers may offer additional services and solutions beyond the typical fulfillment and distribution services.

• What services and technology do you have to help drive our organizational goals?. learn more about how your potential provider operates and the investments they’ve made (and plan to make) in the

Here in Miami,  there are hundreds of  3PLS competing for business. That’s why it’s critical to pick the right 3PL for your company.

For those looking for the most comprehensive level of service, I recommend starting with a top-tier 3PL such as Lilly & Associates.

Conclusion

Whether you’re shipping a small package via air, large crates by ocean vessel or full container loads of goods, a 3PL can assist you in moving your cargo anywhere in the world at any speed you need

Even if you are an established exporter and handle everything in-house, consider utilizing the services of a 3PL.

You’ll be glad you did.

The post How to Supercharge Your Exports with a Third-Party Logistics Provider (3PL). appeared first on International Business Law Advisor.

–Irina Tipunova, Rozsypne, Ukraine

That horrific account captures only part of the tragedy that ended the lives of 298 passengers aboard Malaysia Flight MH17 last month.  Several hundred feet from Ms. Tipunova’s home, dozens more ravaged bodies lay in the wheat fields where the airliner came down.

Upon learning of such a scene, the knee-jerk reaction for many international plaintiff lawyers is to rush lawsuits into U.S. courts to take advantage of it’s generous tort system. Indeed, it was only several weeks ago that a Florida jury awarded $23 Billion to the widow of a smoker for lying about the health effects of cigarettes.

But as terrible as the attack on Flight MH17 was, there is little chance of any civil lawsuit succeeding in the U.S. against those responsible for downing the aircraft– or even against Malaysia airlines for routing the flight over a known war zone.

Below are the 4 primary challenges international litigants face in filing a Flight MH17 lawsuit in the United States.

1. Lack of Jurisdiction

The attack on flight MH17 attack took place in foreign territory, against foreign citizens (all but one was an American citizen), flying aboard a foreign-owned airliner brought down by foreign defendants.

Based on these facts, it’s easy to see why courts will likely dismiss any case filed in the U.S. for lack of jurisdiction or on forum nonconveniens grounds.

Of course, this will not prevent some Plaintiffs lawyers from using the planes’ manufacturer, Boeing, as a jurisdictional anchor to bring suit in the U.S.

However, given that it was an act of war that brought the airliner down and not mechanical failure, a lawsuit will not get very far.

2. Alien Tort Statute Greatly Restricted 

During the past several decades the Alien Tort Statute has been interpreted to allow foreign citizens to seek remedies in U.S. courts for human-rights violations for conduct committed outside the United States. However, in recent years, the U.S. Supreme Court has greatly restricted the extraterritorial applicability of the ATS.

As it stands now, the ATS will not apply to claims involving alleged human rights abuses or other violations of international law alleged to have occurred in foreign countries.

3. Foreign Sovereign Immunities Act

The FSIA establishes the limitations as to whether a foreign sovereign nation (or its political subdivisions, agencies, or instrumentalities) may be sued in U.S. courts—federal or state. If a foreign defendant qualifies as a “Foreign State” under the FSIA, the Act provides that it shall be immune to suit in any U.S. Court—federal or state—unless a statutory exception to immunity applies.

These exceptions are very limited and applicable only in the rarest of cases, e.g. when sovereign waives immunity, commits tortious act on U.S. soil or is on the U.S. State Dept. list of foreign sponsors of terrorism.

None of those are applicable here.

4. Anti-Terrorism Act

The Anti-Terrorism Act provides for treble damages against non-state actors that are found to be connected to acts of terrorism.  These can include bank and other commercial entities that provided material support to terrorists or even the terrorists themselves.

For example, if a Russian official used his own private munitions company to supply the SA-11 missile launcher, then one may have a case against the munitions company.

However, there is no indication here–at least for now–that non-state actors were complicit in the attack on the aircraft.

Conclusion

At first glance, the prospect of filing a Flight MH 17 lawsuit in the U.S. may seem like a viable option for many of the victims’ families.  However, the formidable jurisdictional and statutory challenges make it all but certain that international litigants will be precluded from bringing these claims in the U.S.

What do you think?

The post 4 Reasons Why a Lawsuit Over Flight MH17 Will Not Succeed in U.S. Courts. appeared first on International Business Law Advisor.

Besides that one time in Switzerland that I yodeled my lunch order, I’ve had a good stretch of luck with not running afoul of any major rules of etiquette when doing business in other countries.

Whether I’m at Breakfast with a banker in Brazil, at lunch with a lawyer in London or at dinner with a dealer in Denmark, I’m always uneasy about violating some unspoken rule of etiquette in the country that I’m visiting.

I’ve found that the best way to the right thing is to follow the local rules of etiquette is to simply follow the lead of my hosts. This has worked-out just fine for me.

 SANTIAGO A. CUETO | International Attorney

The post 35 International Business Etiquette Rules that Might Surprise You. appeared first on International Business Law Advisor.

That’s hardly a surprise given the complex nature of international service of process in general.

This post is a logical follow-up to that one because the Inter-American Service Convention (IASC) provides an important supplement to the Hague Convention when United States litigation implicates parties located in Latin America.

What follows is a general is a general overview of how to effectuate service under the IASC.

The Inter-American Service Convention

Replacing the traditional letters rogatory process, the IASC provides a mechanism for service of documents by a foreign central authority. The Department of Justice is the U.S. Central Authority under the IASC.  Requests from the United States are transmitted via a private contractor carrying out the service functions of the U.S. Central Authority on behalf of the Department of Justice.

The IASC was intended to establish uniform procedures for service of process among its signatories. Signatories include the US, Argentina, Brazil, Chile, Colombia, Ecuador, El Salvador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela.  Only Mexico, Argentina and Venezuela ratified the Hague Convention.

 1.  Request for Service Form and Case Initiating Documents.

A party makes a request for service under the IASC by completing an official Form USM-272 and 272A, embedded and available for download below.

The request is comprised of an original and two copies of the forms, and three copies of the summons and complaint or other documents to be served.

Article 3 of the Additional Protocol specifies that “letters rogatory” must be prepared as part of the request. The US has taken the position that the Form USM-272/272A satisfies this requirement, and that a separate, formal letter rogatory is not required.

Unlike the Hague Service Convention, the IASC requires the form, i.e., Form USM-272/272A, to bear the seal and signature of the judicial or other authority of the country of origin and the signature and stamp of the Central Authority.

The clerk of the court in the U.S. where the action is pending must place their seal and signature on the form where it reads “Signature and stamp of the judicial or other adjudicatory authority of the state of origin”.  The Department of Justice’s contractor will execute the signature/stamp of the U.S. Central Authority.

2.         Translations of Documents

All documents served with the Form USM-272/272A must be translated into the language of the destination state. Although the Form USM-272/272A is not itself required to be translated into the language of the destination state, good practice suggests that it be translated as well for ease of service by the nationals of the destination state.

3.        Method of Service under the IASC

Requests for service under the IASC must be made through the Central Authorities for both the originating and destination states. As with the Hague Convention, each IASC signatory has established a Central Authority for receiving requests for service of process within its borders and for making service pursuant to those requests.

The Central Authorities for several IASC contracting states are listed on the Organization of American States’ Department of International Law website.

The US State Department reports that requests not transmitted through Authority channels are often returned unserved.

After receiving the required documents, the Central Authority in the destination state will make service by the method prescribed by local law.

The IASC makes no provision for service by mail. Whether service in a signatory state by mail would be accepted is a question to be determined by reference to the local laws of the destination state.

4.       Proof of Service

The foreign central authority will execute page 7 of the form as proof of service.

Practice Tips

Service by Mail: Neither the Convention nor the Additional Protocol expressly provide for service by mail.  Litigants should consult local counsel to determine if mail or other methods of service are available, and what effect the use of alternative methods might have on later efforts to have a U.S. judgment locally enforced. Be sure to visit the Department of State Bureau of Consular Affairs to determine whether service by mail is accepted in the destination state.

Time Frame: The time required to execute a Convention request is not much faster than the letters rogatory procedure in some countries.  As a general rule it may take from 6 months to a year for a request to be executed. The U.S. Central Authority advises that Argentina and Peru have succeeded in processing requests more quickly, generally within three months.

Conclusion

The Inter-American Service Convention simplifies and enhances the process for serving court documents in many Latin American countries.  While the IASC  is not much faster (in most cases) than the traditional letters rogatory,  it provides for a more formalized mechanism for service of process in contracting states.

USM Form 272 and 272A

The post 4 Steps to Effectuate Service of Process Under the Inter-American Service Convention appeared first on International Business Law Advisor.

A special guest post by Global Security Consultant and Political Risk Expert, Paul Crespo.  
This is the latest post in the series.

Sergei Karpukhin / Reuters

The 2014 Olympic Winter Games began today in Sochi, Russia. Numerous U.S. multinational corporations such as McDonald’s, Coca Cola, Proctor & Gamble and Visa are sponsoring or participating, and 10,000 Americans are expected to attend. But former CIA Deputy Director Michael Morell recently stated that these are the “most dangerous Olympics” he has experienced in his adult life.

So what are the risks to international businesses?  And what can you do to protect yourself?

“Ring of Steel”

Because of the heightened threats and high visibility, the security precautions taken by the Russians are substantial. According to a report by the Center for Strategic and International Studies (CSIS) – the Russians have allocated $2.5 billion for security in and around Sochi – promising a “Ring of Steel” around the games.

• This includes surveillance cameras throughout all the Olympic facilities and between 40,000 and 70,000 troops and police officers in Sochi – far more than deployed by the British for the 2012 London Games.
• To protect the coastline the Ministry of Interior is deploying high speed boats, all terrain vehicles (ATVs), observation equipment and thermal imaging capabilities that can detect even the smallest rubber boats, as well as special water cannons to counter combat swimmers.
• Overhead, flights will be restricted over the Greater Sochi area and Unmanned Aerial Vehicles (UAVs) are being used to patrol the skies over the games. Preventive actions and sweeps against potential terror groups have also been conducted.

Emergency Response

In case of an incident a special emergency response group has been created composed of 1,500 rescue workers and firefighters with 100 high-tech vehicles, including four helicopters and five ships, and a unique fire engine with ten tons of water and two tons of foam. All this is managed by 16 new state-of-the-art fire and rescue centers.

Security experts from the U.S. and other countries, including two dozen FBI agents, are also attempting to cooperate with the Russians, but both Morell and U.S. Representative Mike Rogers, Chairman of the House Intelligence Committee, believe the Russians are not cooperating enough, and despite all the precautions, risks abound.

Specific Threats

Many experts believe that due to the unprecedented security measures the Olympic venues themselves are fairly safe, but some are concerned about softer targets away from the Olympics such as airports, train stations or western hotels.

• While many terror groups would be keen on targeting these Olympics, a specific Islamist separatist group – the Caucusus Emirates – is openly threatening these games and recently conducted twin suicide bomber attacks in Volgograd, Russia killing 34 people.

Volgograd is 600 miles from Sochi, but a major transport hub for those traveling to the games.  According to Morrell this group is “capable, dedicated and determined.”  Media reports have also warned of “Black Widows,” wives of militants killed by Russian security forces, acting as suicide bombers

Cyber Threat, Privacy, Crime

Beyond the threat of terror attacks, there is a high risk of cyber attacks to any visitor logging on to a Russian network via phone or computer. Russian Federal law permits the monitoring, retention and analysis of all data that traverses Russian communication networks, including internet browsing, e-mail messages, telephone calls, and fax transmissions.

• If you log on to the internet or fire up your cell phone when you land in Russia, you will be hacked and your data will be compromised. Your phone calls may even be recorded.

You shouldn’t expect privacy in Russian hotel rooms either, and criminal elements will also be targeting Olympic visitors for petty crime and scams, so be careful with your electronic and verbal communications, as well as your wallets and purses.

What to do

Travel security and crisis management planning are key. Professional global private security firms can provide preventive training and planning, as well as GPS tracking for you and your family, employees or colleagues, and on-site assistance and response in case of an emergency. Two US Navy ships are also currently in the Black Sea prepared for a mass evacuation of Americans, if needed.

On an individual level you should follow basic guidelines:

• Read U.S. State Department Travel Warnings
• Use common sense
• Maintain a low profile
• Provide a friend, family member or colleague your itinerary
• Make a contingency plan in case of emergency
• Stay within prescribed secure areas
• Avoid wearing clothing or patches on backpacks and baggage identifying nationality or teams
• Always be aware of your surroundings
• Be alert to people’s behavior
• Quickly walk away from anyone exhibiting suspicious or odd behavior
• Quickly walk away from any unexplained or unaccompanied package or backpack
• Avoid taking or using smart phones or laptops with valuable data stored on them, or those connected to networks at home or offices with valuable data
• If possible, create throwaway emails, and use throwaway “dumb” phones, on your visit
• U.S. citizens traveling to Russia should enroll in the State Department’s Smart Traveler Enrollment Program (STEP)

Conclusion

These are probably the riskiest Olympic Games in recent history. While the security precautions being taken are unprecedented, so are the threats. Enjoy the games but remain security conscious at all times.

_______________

Paul Crespo is a global security and political risk expert. A Senior Consultant with Trident Crisis Management Group, he has appeared on Fox News, CNN and other major TV news venues. He has varied experience in corporate security, kidnap and ransom negotiations, intelligence and diplomacy as well as military operations in hotspots from the Balkans to the Persian Gulf. A former officer in the US Marine Corps he was also assigned to the Defense Intelligence Agency (DIA) as a military attaché and posted to several US embassies overseas. Paul graduated from the Georgetown University School of Foreign Service, and has a Masters degree in War Studies from Kings College, University of London, and a Masters degree in International Relations from Cambridge University in the UK.  Paul can be reached at pcrespo@tridentcmg.com

________________

Be sure to read the other posts in this series by Paul Crespo:

Don’t Let Shipping Piracy Sink Your International Business

3 Steps to Prepare your International Business for Crisis and Continuity

Cyber Attack – 3rd Biggest Threat to International Business

How Secure are U.S. Businesses in Mexico?

Brazil’s Mega Events: Risks for International Businesses during the World Cup and Olympics.

Surviving a Kidnapping: How Your International Business Should Respond.

11 Ways to Avoid Getting Kidnapped While on Business Overseas.

Political Risk Insurance: Why Your International Business Must Have It.

The post How Safe are the Sochi Olympic Games? appeared first on International Business Law Advisor.

Have you ever received an email that is so fascinating that you have to read it out loud to make sure you that you read it correctly?

I received one of those several days ago.

The email asked the following question:

“This past summer I purchased [factory equipment] in [Country X] with Bitcoin.  I never received the equipment and [the supplier] won’t respond to my messages. Is it possible to file a lawsuit against [the supplier] even if I used bitcoin?

Wow.

I had to re-read the email several times to make sure I understood what I was reading.

I have heard of people buying all kinds of things with Bitcoin, mainly consumer goods and even trips to space.

But this was the first time I learned of Bitcoin being used as a payment method in a major international business transaction.

And it’s certainly the first time I read anything about anyone contemplating a lawsuit based on a failed bitcoin transaction.

My mind raced with all the implications behind the question, i.e. “Is it possible to file a lawsuit against [the supplier] even if I used bitcoin?”

I could think of only more questions:

• Why, for example, did this person use bitcoin to make the purchase instead of using a conventional payment method?
• Is bitcoin considered legal currency in the U.S.?  How about in other countries?
• Can one sue for breach of contract where payment was made using bitcoin?
• Could a court seize the defendant’s bitcoin account? How is “bitcoin jurisdiction” determined?

Bitcoin Basics. 

Let me back up a bit to explain what bitcoin is for readers who may not be familiar with it.

In the most basic terms, Bitcoin is a decentralized digital currency that enables instant payments to anyone, anywhere in the world.

It uses peer-to-peer technology to manage transactions and issue money with near real-time confirmation.  The price of ฿1 bitcoin is currently near the $1000 mark.

Bitcoin Gaining International Legitimacy

Getting back to the question whether a bitcoin-based lawsuit is possible, it’s  my impression is that a cause of action would be viable, at least here in the United States–putting any jurisdictional issues aside for the moment.

A recent SEC decision is guiding and supports the proposition that bitcoin is a legitimate currency.  Just a few months ago, the court in SEC v. Shavers held that bitcoin was a “form of money” subject to regulation by the Securities and Exchange Commission.  (Civ. No. 13-416 E.D. Tex. Aug. 6, 2013).

While the U.S. is just beginning to address the issue, other countries, including Germany and Canada, have emerged as “Bitcoin-friendly” jurisdictions through their favorable pronouncements regarding the regulation and treatment of Bitcoin.

In terms of jurisdiction, however, the international nature of bitcoin raises concerns over where internet transactions involving bitcoin “take place.”

This issue alone is sure to spawn years of litigation.

Conclusion

I’ve still got a lot of  questions.

But  one thing is for sure.  The widespread use of bitcoin will soon generate the first bitcoin lawsuit.  Whether it takes place in the U.S., Germany, Canada or in some other country, remains to be seen.  Until all the legal issues are sorted out, paper money has never looked so good.

What do you think?

References

Regulating Digital Currencies: Bringing Bitcoin within the Reach of the IMF, Nicholas Plassaras, Chicago Journal of International Law, 14 Chi J Intl L (2013), University of Chicago

12 questions about Bitcoin you were too embarrassed to ask, Timothy Lee

Are Cryptocurrencies ‘Super’ Tax Havens? 112 Michigan Law Review First Impressions 38 (2013) Omri Y. Marian

How Bitcoins Could Revolutionize Global Payments — Forever, Bank Innovation

US regulations are hampering Bitcoin’s growth

The Legal Status of Online Currencies: Are Bitcoins the Future? 
Journal of Banking and Finance Law and Practice (2013)

The post The World’s First Bitcoin Lawsuit—in the United States? appeared first on International Business Law Advisor.

First implemented by the U.S. in 2002, the 24-hour advance manifest rule requires all inbound cargo carriers to submit complete manifests a full 24 hours before leaving their ports of departure.  The rule has since been widely adopted by  countries all over the world.

Under Japan’s 24-Hour Rule (JP24), notice of all containerized freight bound for Japan must be transmitted at least 24 hours before cargo is loaded onto vessels to the Nippon Automated Cargo and Port Consolidated System (NACCS), the Japanese government agency responsible for the country’s import/export and customs clearance services.

What Information Must be Included?

Information to be filed with Japanese authorities include:

• type of cargo;
• names of trading parties;
• route;
• schedule; and
• identification of the vessel and container.

The regulation applies to all containerized cargo intended for delivery into a Japan port. Empty containers, break bulk cargo, and Foreign Remaining on Board (FROB) cargo are all exempt from this rule.

Tough Penalties

Shippers that fail to comply with JP24 will face tough penalties, including a fine of approximately $5,000 that must be sent before cargo reaches Japanese ports. Other penalties for noncompliance may include up to one year of jail time with hard labor.

Practice Tip:  Because the 24-hour deadline applies to the vessel sailing date rather than the intermodal cargo departure date, exporters shipping directly from ports will have less time to prepare the manifest  than those shipping from inland points.  Thus, it’s critical for portside exporters to factor in additional time for submitting the advance manifest to the NACCS.

Conclusion

While exporters have several months to implement internal procedures to ensure compliance with JP24, it’s best to get started as soon as possible.  With the holiday season getting underway, March 10, 2014 is a lot closer than you might think.

The post Japan’s New 24-Hour Advance Manifest Rule Takes Effect on March 10, 2014. appeared first on International Business Law Advisor.

Given Miami’s proximity to the region, I see these types of cases a lot.

The first thing I’ll do is take a look at the case to confirm that jurisdiction would be proper in the U.S.

And most of the time it is.

However, when the jurisdictional nexus is weak or nonexistent, these Latin American breach of contract cases must be litigated in the region.

Litigation in Latin American is Painfully Slow

So whenever I tell a client that the case must be litigated in Latin America, I say “good luck with that.”

I say this because litigation in South and Central America is painfully slow.

I mean really really slow.

As in 1,402 days slow.

That’s the average time it takes to enforce a contract in Guatemala, for example.

Other countries in the region aren’t much better:

•  In Colombia it takes 1,288 days to enforce a contract;
• 426 days in Peru;
•  480 days in Chile;
• 590 days in Argentina;
•  610 days in Venezuela;
•  725 days in Uruguay; and
• 731 days in Brazil,

By comparison, the average time it takes to enforce a contract in Russia and China, is  270 days and 406 days, respectively.

In the United States, it takes an average of 370 days

Considering that it’s a lot easier to enforce a contract between two companies in Communist China or corrupt Russia than in any country in Latin America, it’s easy to see why international businesses are reluctant to enter into formal contracts with companies in the region.

How to Avoid Litigation in Latin America

There are two primary ways to avoid getting stuck in the Latin American court system.

International Arbitration

By far international arbitration is the best way to handle a dispute in the region. It’s generally much faster, more predictable, more affordable in the long run and virtually immune to corruptive influence. There are many ways to include an international arbitration clause in your contract or agreement. You’ll see a post on this soon. For a general overview, be sure to head-on over to International Arbitration Advisor.

Forum Selection Clause

If you must litigate, the best measure you can take to keep a dispute out of Latin American courts (if permissible under local law) is to draft a forum selection clause into the contract. With a bit of clever negotiation, you’ll find that the other party will be happy to agree.

Conclusion

Don’t get caught in litigation in South and Central America if you can avoid it. Until the region implements modern court procedures and streamlines its bloated bureaucracy, parties will continue to press their luck with enforcing a contract in Latin America.

_______

References

World ranking for endless litigation, Andres Oppenheimer

Doing Business 2014,World Bank and the International Financial Corporation

The post Enforcing a Contract in Latin America? Good Luck with That. appeared first on International Business Law Advisor.