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1、TheFinePrint,Legal&taxinsight:WorkingwithpartnerdisputesthroughtheArbitrationBillBy SebastianPawlitaandThitsarKhine
2、 Sunday,15June20144Acommonconcernforinvestorsisdisputeresolution:Iftherelationshipwithabusinesspartnerturnssour,willIbeatadisadvantagebecausetheotherpartycaninfluencet
3、hejudge?InMyanmar,asinotherdevelopingcountries,foreigninvestorstendtodistrustlocalcourts.Theyfearthatthejudgemaybeinherentlybiasedtowardsthelocalpartyorevencorrupt.Theyworryaboutthelengthoftimethatitmaytakeuntilthecaseisfinallydecided.Ifitisahigh-profilecase,thereisthepossibility–fromth
4、estandpointoftheinvestor,anunwelcomepossibility–thatthecourtproceedingswillgetpresscoverage.Usually,investorspreferarbitrationoverdisputeresolutionbythecourtsastheyconsiderarbitrationtobefaster,moreprofessional,lesspronetolocalbiasandlesslikelytoresultindirtylaundrygettingwashedinpublic
5、.However,arbitrationinMyanmarhasitsshortcomings.Thereisnoarbitrationinstitute.Anarbitralawardhastobeenforcedbyacourt,andcourtsinMyanmarinpracticeassumewidediscretioninsettingasidearbitralawards.Thismeansthat,afterhavinggonethroughallthehasslewitharbitration,apartymaystillfinditnecessary
6、tosuetheotherpartyincourt.Localbusinesspeoplearethereforewarytoaboutagreeingonanarbitrationclausewhentheyhavebusinessdealingsamongstthemselves.Foreigninvestorspreferarbitrationabroad–preferably,ofcourse,intheirhomejurisdiction.However,theyalsoknowthattheirlocalpartnerisnotlikelytoagreet
7、othis,sotheysuggestarbitrationinathirdcountry.Usually,thisisSingapore–acountrywithadeveloped,stableandhighlyprofessionaljusticesystemandaninternationallyrenownedarbitrationcentre.Regrettably,however,therehavebeennoreportedcasesofanyforeignarbitralawardbeingenforcedinMyanmarforthelastfew
8、decades,andinvestorsarewisetoactontheassumptionthatinpractice,theiraward(iftheywinarbitrationabroad)willbeworthlesshere.Thismaychangesoon,though.MyanmaraccededtotheNewYorkConventionontheRecognitionandEnforcementofForeignArbitralAwardswitheffectasofJune15,2013.Sofar,therehasbeen
