National Arbitration Research Articles

Virtual arbitration hearing: arbitrator's discretion or the right of the parties?

Today, international commercial arbitration remains one of the most effective ways to resolve disputes complicated by a foreign element. Parties to a dispute, preferring arbitration, wish to obtain the desired result in the shortest possible time. This is achieved because the parties to the arbitration proceedings themselves are endowed with an arsenal of rights that are not inherent in national courts: the right to choose a particular arbitration, the composition of the arbitral tribunal, and the law to be applied in the dispute. This is a manifestation of the "autonomy of will" of the parties to the dispute. However, despite such a broad scope of powers, some powers of the arbitral tribunal, which is chosen by the parties, cannot be limited. Although the discretionary powers of international commercial arbitration are regulated by national arbitration laws and rules, their exercise may sometimes contradict the fundamental principles and standards of effective arbitration. One of such powers is the right to determine the format of arbitration hearings, since it is by exercising this right that the arbitral tribunal may make its own decision without taking into account the views of the parties to the dispute. The article provides a comparative legal analysis of arbitration legislation, rules and law enforcement practice of national courts with regard to the possibility of determining a virtual hearing as the most efficient format for consideration of a case. Particular attention is paid to the imperfection of Ukrainian legislative regulation and the lack of a single, consistent court practice on these issues. Therefore, the conclusions propose to eliminate the shortcomings in the legal consolidation of such definitional constructs as "hearing" and "oral hearing".

Commercial arbitration regime and sourcing decision

Introducing commercial arbitration into a two-country sourcing model, this paper examines how the quality of commercial arbitration regime affects sourcing decision when production involves a relationship-specific transaction. Arbitration may be invoked when a firm shaves the investment value of a customized intermediate input or does not pay in full for investment. Under the full verifiability of an ex-post investment value by an arbitrator, firm behavior is governed by the quality of arbitration regime, measuring how fully a national arbitration regime supports the enforcement of arbitral awards. I theoretically find that a firm’s likelihood of choosing global sourcing over domestic sourcing increases with the source and destination countries’ qualities of international arbitration regimes and the source country’s quality of general arbitration regime. These impacts are magnified as the production of an intermediate input involves a greater degree of relationship-specific transaction. Results also show that as the production of an intermediate input entails a greater degree of relationship-specific transaction, a firm’s likelihood of choosing global sourcing over domestic sourcing decreases when domestic arbitration offers the better enforcement of arbitral awards compared to international arbitration.

Penyelesaian Sengketa Wanprestasi Secara Alternatif Melewati Badan Arbitrase Nasional Indonesia (BANI)

Peaceful resolution of disputes is the main goal in the modern legal system. One form of peaceful resolution, namely arbitration, is recognized as an effective way to resolve disputes firmly and bindingly. Arbitration is part of Alternative Dispute Resolution (ADR), which includes various methods of resolution outside of court or litigation. In the context of resolving default disputes, the Indonesian National Arbitration Board (BANI) is an efficient option. This research aims to analyze the role and benefits of arbitration in handling default disputes, especially those related to BANI. The research method used is normative legal research by collecting and analyzing secondary data such as laws, regulations, arbitration decisions and related literature. The research results show that the default dispute resolution process through BANI involves several steps, including arbitration selection, trial process, and final decision. The advantages of resolving default disputes through BANI include speed, legal certainty through arbitration awards, and the diversity of arbitrators who can provide different points of view in resolving disputes. Based on research findings, the decision of the Denpasar District Court Class I A Number 3/Pdt.G/2017/PN.Dps is based on Article 3 of Law no. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. The judge stated that the District Court did not have the authority to decide disputes between two parties who were bound by an arbitration agreement. This shows that if a dispute occurs, the parties must resolve it through deliberation. If deliberations are unsuccessful, the resolution will be handed over to the Indonesian National Arbitration Board (BANI).

Reformulation of Commercial Court Authority Regulations Relation to the Arbitration Clause

The issue of jurisdiction in dispute resolution within the Commercial Court arises when the contract designates an arbitration clause as the preferred mechanism for resolving disputes. In the contractual agreement between PT. Swadaya Graha and PT. Rayon Utama Makmur (RUM), the chosen forum for dispute resolution is stipulated to be the National Arbitration Board (BANI). However, concurrently, there is a proposal for dispute resolution within the Commercial Court framework concerning defaulted debt and receivable disputes in PKPU case number 45/Pdt.Sus-PKPU/2020/PN Niaga Smg. This has engendered a legal debate centring on the application of the "lex specialist derogat legi general" principle among the Arbitration Law, the Bankruptcy Law, and PKPU, with regard to the absolute jurisdiction of institutions authorized to examine, decide, and adjudicate incidents of defaulted debt and receivable disputes within the legal relationship between the PKPU Petitioner and the Respondent. The PKPU process is structured within a contract that includes an arbitration clause as the designated dispute resolution mechanism. Given the complications and hurdles posed by these issues, there is a pressing need for legal certainty in the future. Furthermore, there has been a conflict of norms between the Arbitration Law the Bankruptcy Law and PKPU, as evidenced in PKPU case number 45/Pdt.Sus-PKPU/2020/PN Niaga Smg. Hence, a reformulation of the Bankruptcy Law and PKPU regulations is essential to harmonize them with evolving norms and address emerging issues. A vital aspect of this reformulation involves the potential removal or replacement of Article 303 of the Bankruptcy Law and PKPU.

The Role of International Arbitration Institutions in Resolving Business Disputes Between Countries

Arbitration is an option that businesses frequently use to resolve conflicts. Arbitration, as an institution in the field of judicial proceedings outside of public courts, is a highly useful way of settling disputes or disagreements that arise in the fulfillment of agreements or contracts, particularly in both national and international private law. This arbitration organization is commonly utilized in commercial and investment transactions. In this research, the approach used is normative juridical, which evaluates and tests secondary facts in the form of positive law. This research is descriptive and analytical in nature. arbitration is a way of resolving a civil dispute outside the public courts based on an arbitration agreement made in writing by the parties to the dispute. Individuals or institutions can settle disputes through arbitration. Arbitration is increasingly being utilized to settle national and international commercial disputes. The role of international arbitration is facilitated by the existence of international arbitral institutions. These bodies include The London Court of International Arbiitration, The Court of Arbitation Of The International Chamber Of Commerce, The Arbitration Institute Of The Stockholm Chamber Of Commerce, and Indonesian National Arbitration Board.

Awarding costs where no arbitral jurisdiction on the merits: the making and enforcement of negative cost awards

Abstract Arbitral tribunals routinely award costs when they lack jurisdiction on the merits of a dispute. However, most of the identified awards—labelled here as ‘negative cost awards’—fail to adequately explain the source of the tribunals’ authority to award costs, either by omitting the reasoning altogether or by merely relying on the arbitration rules. If the arbitration agreement is found to be invalid or non-existent, it cannot empower a tribunal to award costs, and the arbitration rules ordinarily should not apply if the parties never agreed to them in a valid arbitration agreement. This notwithstanding, tribunals usually have a valid basis to award costs. This authority can be found in the arbitration agreement on the issue of costs, the competence–competence principle or, one way or another, national arbitration laws. Negative cost awards generally should be enforceable both under the New York Convention and the ICSID Convention, but the lack of an express finding of the arbitration agreement or another source of the tribunals’ authority to award costs may jeopardize the enforceability of such awards. Tribunals can avoid this problem by expressly explaining the basis of their authority to adjudicate costs in their awards.

Penyelesaian Sengketa Wanprestasi Secara Alternatif Melewati Badan Arbitrase Nasional Indonesia (BANI)

Peaceful resolution of disputes is the main goal in the modern legal system. One form of peaceful resolution, namely arbitration, is recognized as an effective way to resolve disputes firmly and bindingly. Arbitration is part of Alternative Dispute Resolution (ADR), which includes various methods of resolution outside of court or litigation. In the context of resolving default disputes, the Indonesian National Arbitration Board (BANI) is an efficient option. This research aims to analyze the role and benefits of arbitration in handling default disputes, especially those related to BANI. The research method used is normative legal research by collecting and analyzing secondary data such as laws, regulations, arbitration decisions and related literature. The research results show that the default dispute resolution process through BANI involves several steps, including arbitration selection, trial process, and final decision. The advantages of resolving default disputes through BANI include speed, legal certainty through arbitration awards, and the diversity of arbitrators who can provide different points of view in resolving disputes. Based on research findings, the decision of the Denpasar District Court Class I A Number 3/Pdt.G/2017/PN.Dps is based on Article 3 of Law no. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. The judge stated that the District Court did not have the authority to decide disputes between two parties who were bound by an arbitration agreement. This shows that if a dispute occurs, the parties must resolve it through deliberation. If deliberations are unsuccessful, the resolution will be handed over to the Indonesian National Arbitration Board (BANI).

Pelaksanaan Putusan Eksekusi BANI atas Sengketa Kontrak antara Badan Layanan Umum BP3TI dengan PT. Indonesia Comnets Plus dan Konsorsium NIPRESS

The Indonesian National Arbitration Board (BANI) is an option in resolving contract disputes between the government and private parties. When the government is in a losing position in a contract dispute according to the BANI decision, the government must comply with the BANI decision. This study aims to understand the implementation of the execution of BANI decisions that conflict with Law Number 1 of 2004 concerning State Treasury and the authority of the Supreme Court to address the issue of BANI decisions that conflict with Law Number 1 of 2004 concerning State Treasury. The focus of this research includes the execution of BANI decisions that are contrary to Law Number 1 of 2004 concerning State Treasury and the Authority of the Supreme Court to the Court that confiscates state assets. The research method used in this research is normative juridical through statutory and conceptual approaches using secondary legal data consisting of primary legal materials, secondary legal materials and tertiary legal materials. The data obtained from library research is then analyzed using descriptive qualitative. Based on the research, it is found that the execution of the BANI decision carried out by the court through the confiscation of a sum of money in an account belonging to the BP3TI Public Service Agency should not be carried out because this has contradicted Article 50 of Law Number 1 of 2004 concerning State Treasury. Therefore, the Supreme Court is expected to play a role in providing solutions by providing guidance to the lower courts including the district courts by issuing a Supreme Court Circular Letter (SEMA).

PENYELESAIAN SENGKETA KONSUMEN DALAM TRANSAKSI CROSS BORDER E-COMMERCE SEBAGAI UPAYA MEMBERIKAN PERLINDUNGAN HUKUM

This article aims to know the consumer protection in transactioncross border e-commerceand consumer dispute resolution due to losses experienced by consumers in the transaction. This research is a normative legal research that uses secondary data such as legislation. Legal protection of consumers in transactions e-commerceis regulated by Law No. 8 of 1999 on Consumer Protection and Law No. 19 of 2016 on Amendments to Law No. 11 of 2008 on Electronic Information and Transactions. Zincleta settlement in cross border e-commerceinvolves various problems, especially related to standard clauses referring to foreign jurisdictions. The ITE Law provides a legal basis for e-commerce,but does not specifically regulate cross-border agreements, various methods of dispute resolution, such as mediation, arbitration, and ODR (Online Dispute Resolution) becomes relevant in this context. In conclusion, legal protection of consumers in cross-border e-commerceneeds to be strengthened. Dispute resolution involves the role of institutions such as the Consumer Dispute Resolution Agency (BPSK) and the Indonesian National Arbitration Board (BANI), but the implementation of ODR can be an innovative solution to handle disputes efficiently, especially in the international sphere.need to be strengthened.

THE IMPLEMENTATION OF INTELLECTUAL PROPERTY DISPUTE RESOLUTION THROUGH MEDIATION & ARBITRATION

This article aims at determining, describing, and analyzing the application of intellectual property rights through mediation & arbitration from the perspective of Indonesian law and its practice in the Arbitration Regulations of the Indonesian National Arbitration Board. Intellectual Property dispute resolution among the disputing parties by mediation and arbitration (out-of-state court settlement) has not been effective because of limited and lack of socialization from the Government or mediation and arbitration institution. The resolution of IPR disputes has not been effective, this is evident from the results of discussions with the DJKI and the West Java Kanwilkumham, which are still few IPR cases that have been registered to be resolved. Likewise, very few IPR cases have been submitted to the Dispute Resolution Institution.

LEGAL REVIEW RELATING TO CANCELLATION OF ARBITRATION AWARDS THAT ARE ALREADY POWERFUL (INKRACHT) AND FINAL RELATED TO ARBITRATION LAW NO. 30 OF 1999 CONCERNING ARBITRATION CASE STUDY PT. KRAKATAU POSCO AGAINST INDONESIAN NATIONAL ARBITRATION BOARD, DKK AT SERANG STATE COURT

In this thesis, the author discusses the determination of several deviations related to the cancellation of the Arbitration Award as regulated in Law Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. In this case, the parties and the judges themselves tend to ignore the existence of the Arbitration Institution, the agreement on the absence of an Arbitration Clause is considered a fake document and a deception by the Arbitration Applicant. Krakatau Posco (Arbitration Applicant) against the National Arbitration Board (Arbitration Respondent I) and PT. Krakatau Enggering (Respondent of Arbitration II) in Decision Number 105/Pdt.Arbt/2018/PN.Srg in Serang District Court Class IA. Arbitration clauses are carried out when the contract agreement is about to start between the two parties to avoid disputes before or after in the event of a dispute both parties must file the dispute at the Indonesian National Arbitration Board (BANI). The problems discussed in this thesis are regarding the Determination of Number 105/Pdt.Arbt/2018/PN.Srg. dated September 21, 2018, the judge considered that the absence of the Arbitration Clause was considered a false document and a ruse. The research method used in this thesis is normative juridical through a law approach. The sources used are in the form of secondary legal materials with library techniques that are analyzed qualitatively. The result of this study is the cancellation of the Arbitration decision which was granted by the Panel of Judges at the Serang District Court Class IA based on the fact that there was no Arbitration Clause agreement between the two parties wheKeywords: Arbitration Cancellation, Arbitration Clause

Arbitration In Times of Economic Uncertainty: The Role of Qatar Financial Center’s Jurisprudence in Shaping International Arbitration Principles

The framework applicable to international arbitration is notably very liberal, as are the criteria of internationality embraced by both academia and practice. However, the utilization of this form of transactional justice provides tangible benefits, such as alleviating the burden on national courts, expediting the delivery of justice, establishing a body of international arbitration jurisprudence, flexibly securing commercial law at both national and international levels, and more. It's quite likely that these developmental aspects have facilitated the growth of alternative dispute resolution methods as we are currently witnessing. Moreover, it can be asserted that the conjunctural uncertainties that the legal world must contend with encourage the resort to arbitration. In fact, periods of uncertainty prompt economic entities to align themselves with familiar and protective arbitral frameworks that serve their interests. This circumstance appears particularly prominent in economies closely tied to the oil sector, such as those found in the Gulf monarchies. Consequently, this paper aims to demonstrate for the first time in scientific literature that, given their structural and cyclical fundamentals, the Gulf monarchies have become preferred venues for arbitration. In this context, the jurisprudence actively developed by Qatar's National Arbitration Center (QFC-QICDRC) and established by Law No. 7 of 2005 in accordance with Law No. 2 of 2017, also known as the "National Arbitration Law", holds significant importance in comprehending the mechanics of a legally prominent and effective practice: International arbitration.

Dispute Resolution in Business Sector: Comparing Indonesia and Singapore Arbitration Model

Dispute resolution within the business sector can be accomplished through either national arbitration institutions or international arbitration institutions. International arbitration serves as a process to settle civil disputes using a neutral third party, particularly in the context of business-related conflicts arising between parties engaged in international business agreements. Such arbitration is often specified through arbitration clauses included in these international business agreements, which are mutually agreed upon by the involved parties. One example of an international arbitration institution that specializes in resolving civil disputes, particularly those within the business sector, is the Singapore International Arbitration Center (SIAC) located in Singapore. The implementation of arbitration awards depends on the type of arbitration being conducted, whether it is a national arbitration award or an international arbitration award. During the preparation of this paper, the author utilized a normative-juridical research method, which involves relying on legal library sources and secondary legal materials to address existing legal issues. This paper aims to compare the legal foundations and the arbitration dispute resolution processes employed by the Indonesian National Arbitration Board (BANI) and the Singapore International Arbitration Center (SIAC). The research findings reveal that the legal basis for arbitration dispute resolution utilized by the Indonesian National Arbitration Board (BANI) differs from that employed by the Singapore International Arbitration Center (SIAC). Nevertheless, the processes and procedures for resolving arbitration disputes conducted by both institutions demonstrate notable similarities.

Business Dispute Resolution: Insight from Indonesia and Saudi Arabia

In legal disputes, the crucial aspect lies in the execution of a decision. A decision holds no value if it cannot be effectively enforced, even if it possesses permanent legal force. To settle civil cases, two prominent institutions are employed: the court and arbitration. In the context of international business agreements, parties turn to international arbitration as a means of resolving disputes, employing neutral third parties. This paper delves into the process of international arbitration, particularly focusing on its application within the business sector. Various arbitration clauses in international business agreements establish international arbitration, with the objective of impartially addressing disputes between parties involved. A notable institution that facilitates such resolution is the Saudi Center for Commercial Arbitration (SCCA) in Saudi Arabia. However, the effectiveness of arbitration rests on the implementation of arbitration awards, which is influenced by the type of arbitration undertaken, whether national or international. Hence, this paper aims to draw a comparative analysis between the Indonesian National Arbitration Board (BANI) and the Saudi Center for Commercial Arbitration (SCCA), examining the legal basis employed and the processes involved in resolving arbitration disputes. By understanding the contrasting practices of these arbitration institutions, stakeholders can gain insights into optimizing dispute resolution mechanisms. The study holds practical significance for businesses and individuals engaged in international trade, emphasizing the importance of selecting the appropriate arbitration institution to ensure enforceability and expeditious resolution of disputes. Ultimately, the findings of this research contribute to fostering a more efficient and reliable international arbitration framework.

Pactum De Compromittendo In Shares Purchase Agreement

The parties, namely the Seller and the Buyer have agreed to determine the arbitration clause in the form of a pactum de compromittendo made in writing and incorporated into the deed of the principal agreement for the sale and purchase of shares of PT. Indonesian Rice Granary. This means that since the beginning before the occurrence of a dispute, the choice of settlement has been determined through the Indonesian National Arbitration Board. In 2021, the Seller files a lawsuit against the Buyer as the Defendant through the general court to request that the said share sale and purchase agreement be declared null and void and has no binding force. In their decision, the Panel of Judges stated that in essence the Central Jakarta District Court had no authority to try this case. Regarding the legal considerations, the assembly based the rules in Article 118 HIR and Article 3 of Law no. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. This study uses a normative juridical approach with the results of the research showing that the enforceability of an arbitration clause in the form of a pactum de compromittendo is binding on the parties according to the pacta sunt servanda principle contained in Article 1338 Paragraph (1) of the Civil Code and the judge's decision as in its considerations is correct and has been according to law.

Seat of arbitration: problematic issues of theory and practice

The effectiveness of arbitration, as well as its attractiveness for disputing parties, depends more on the existing and developed legislative framework of the convention (ratification of numerous multilateral international legal instruments) and national arbitration legislation. It is the combination of these sources that guarantees the procedural autonomy of the arbitration, while significantly reducing the interference of national courts, In addition to the existence of mandatory and optional rules for the provision of such assistance in arbitration.
 Unfortunately, such a legal framework for the consideration of foreign economic disputes by international commercial arbitration may be too complex and even sometimes unclear and problematic. However, this ambiguity in the interpretation and understanding of the law of international commercial arbitration can be addressed by paying sufficient attention to the definitional apparatus, the assessment of the development and improvement of international and national regulationslegal acts that gradually depart from archaic approaches to the definition of regulatory law through more effective analysis.
 Thus, in this article special attention is paid to theoretical and applied problematic issues of determination of «seat of arbitration». Due to clear inconsistencies and uncertainty in the national legislation and enforcement activities of many countries regarding the place of arbitration, this leads to numerous «procedural traps» in considering applications for recognition and enforcement of the award of international commercial arbitration.
 The author pays special attention to the analysis of the legislative regulation of the place of arbitration in Ukraine. And, from the perspective of the jurisprudence of the European Court of Human Rights and the Supreme Court, conclusions are drawn regarding the corresponding contradictions in the definitional apparatus.

The Expedited Arbitration: New Direction in UNCITRAL Rules 2021(Comparative Study)

The idea of expedited arbitration is manifested in the conduct of the arbitration process in a way that takes into account simplicity and speed in the procedural aspects of the arbitration process to reach a final arbitral award in an effective way that contributes to reducing the duration and cost. This study results in many problems, the most important of which are: the potential threat of the principle of the authority of the will of the parties to resort to expedited arbitration, the conflict between the arbitration agreement and the rules of expedited arbitration, and the lack of certainty about the feasibility of shortening time frames in reducing expenses and expenses. This study came to research expedited arbitration as an innovative route adopted by the UNCITRAL Arbitration Rules 2021, to try to clarify the facts about this route and its effectiveness. The study concluded that the approach adopted by the UNCITRAL Rules to expedited arbitration constitutes a true core of this exceptional path, and has been unique from any institutional rules that included provisions for expedited arbitration by enshrining the principle of parties autonomy. One of the most important recommendations is to examine the possibility of adopting expedited arbitration rules in national legislation in view of the nature and value of disputes considered in the framework of national arbitration, which are all simple and uncomplicated disputes as are disputes in the international contex

THE POTENTIAL PROSPECT OF ARTIFICIAL INTELLIGENCE (AI) IN ARBITRATION FROM THE INTERNATIONAL, NATIONAL AND ISLAMIC PERSPECTIVES

Arbitration is the most widespread mechanism for resolving disputes in the modern and Islamic eras. The current global tendency calls for an increase in the integration of disruptive technology, such as artificial intelligence (AI), into arbitration. Using doctrinal legal research methodology, this article examines the potential prospect of artificial intelligence (AI) in arbitration from international, national, and Islamic perspectives. To achieve that, several international arbitration laws, such as the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 and UNCITRAL Model Law on International Commercial Arbitration 1985, national arbitration laws, such as Arbitration Act 2005 (Act 646), UK Arbitration Act 1996, and Singaporean Arbitration Act 2011, and the Islamic law were analysed. The collected data was analytically and critically analysed using the content analysis method. It is found that AI technologies would bring added value to arbitration if they are appropriately employed. However, from a legal perspective, arbitration laws are not mature enough to absorb AI technologies. Besides, it has been discovered that Islam does not prohibit AI technologies as long as they can serve humanity. According to the Islamic point of view, an artificial intelligence arbitrator (AIA) cannot replace human arbitrators. Finally, this article provides several recommendations to enhance the use of AI technologies and AIA in arbitration. This, in turn, would help in creating a modern, prosperous, and just world and improving the international relations between nations, international organisations, and individuals from different countries as any of them could resolve their disputes effectively.

The Role of the Badan Arbitrase Nasional Indonesia in E-Commerce Dispute Resolution through Online Arbitration

The purpose of this study was to determine the role of the Indonesian National Arbitration Board (BANI) in the process of e-commerce dispute resolution through online arbitration. The research method was carried out using a normative juridical approach and was descriptive analytical, then the data obtained were analyzed in a qualitative juridical manner. The results obtained that the Indonesian National Arbitration Board (BANI) has a very important role in resolving e-commerce disputes through online arbitration, although there are no explicit rules governing this matter, the existence of the BANI institution is one of the alternative choices for parties. - the disputing parties in e-commerce to resolve the dispute. The Indonesian National Arbitration Board (BANI) is one of the alternative dispute resolution institutions outside the court (non-litigation) that has the authority to resolve civil disputes including online/e-commerce business disputes through arbitration methods, both conventional arbitration and online arbitration. The conclusion of this study is that the development of electronic commerce (e-commerce) has inspired electronic dispute resolution as well, which is more effective, namely through on-line arbitration, through the Indonesian National Arbitration Agency (BANI). The impact of this research, among others, provides a profitable choice for the parties to the dispute in e-commerce to resolve their dispute more effectively through arbitration through the Indonesian National Arbitration Board (BANI).

What Determines The Outcomes Of Public Procurement Arbitration?

ABSTRACT The strengths and weaknesses of arbitration compared to litigation, as a system for solving procurement disputes between governments and their private counterparts has been a subject of debate among scholars. A particularly sensitive topic relates to the impartiality standards of each system and the determinants of its outcomes. Using a unique database of national arbitration resolutions we analyze the determinants of awards in procurement disputes related to public works. Estimating a cross-section model, we find evidence in favor of party capability theory and the influence of institutional factors in arbitration outcomes, like amendments to procurement law or the characteristics of the organization in charge of administering these processes. As well, we find indirect evidence that suggests that adverse outcomes for government entities are related with the lack of individual incentives of officials to settle with private contractors, and the presence of presumably undue influence among private contractors and arbitrators.