Why Arbitration

Lawyers know the benefits of arbitration, but experience them as abstract. "Faster" – yes, but how much faster? "Confidential" – yes, but what does that concretely mean for my client? NAI asked us to make those benefits tangible. Not by listing them again, but by showing what they mean for a company in the middle of a dispute.

To make the benefits of arbitration concrete, we developed a realistic example case: a Dutch construction company building an offshore wind farm in the Middle East. A dispute of €17.5 million arises over the foundation. The client claims it does not meet specifications; the construction company states that the problems stem from last-minute design changes.

We let the same dispute play out twice: first through court, then through arbitration. Not as a dry list of advantages, but as lived scenarios with real consequences. In the court scenario, the procedure takes four years, the case is picked up by the press, and the construction company misses a tender due to negative publicity. In the arbitration scenario, there is a decision after twelve months, everything remains confidential, and the parties continue their collaboration.

One of the most important benefits of arbitration is confidentiality. But how do you make the absence of something – no press, no public rulings – tangible? Show what does happen without that confidentiality.

The fictional newspaper shows exactly what companies want to avoid: their dispute as a headline. "Offshore wind farm builder in court, instability looms." By visualizing the worst-case scenario, the benefit of confidential arbitration becomes immediately tangible.