Guest blog: Legal insights on cross-border disputes  

Disputes involving cross jurisdictions are inherently complex, requiring careful navigation and an understanding of both domestic and international legal frameworks. 

But what are cross-border disputes? 

Cross-border disputes refer to legal conflicts arising between parties based in different jurisdictions. These disputes may arise from: 

• Contractual breaches in international agreements. 
• Joint venture (JV) conflicts involving entities from multiple jurisdictions. 
• Investment disputes under bilateral or multilateral treaties 
• Issues involving trade restrictions, data protection, or intellectual property enforcement across borders 

Common legal avenues for resolution 

• International arbitration: Often the preferred dispute resolution for neutrality, flexibility, relative speed and international enforceability—especially under conventions like the 1958 New York Convention.  

• Litigation before national courts: In certain circumstances may be necessary, however, the challenges in relation to jurisdiction, language, and procedure can hinder efficient resolution.  

• Alternative Dispute Resolution (ADR): Includes mediation and conciliation, which may preserve commercial relationships through providing non-adversarial forums that may be less time-consuming and more cost-effective. ADR processes are especially valuable in preserving long-term commercial relationships and maintaining confidentiality, even where they do not result in binding outcomes. 

Key legal challenges 

• Choice of law and forum clauses: Poorly drafted or ambiguous clauses may lead to parallel proceedings or jurisdictional disputes that undermining legal certainty and increasing the risk of conflicting outcomes. 

• Recognition and enforceability of awards and judgments: Ensuring that outcomes can be enforced in other jurisdictions is critical, especially where assets are held in jurisdictions with limited recognition of foreign awards or judgments 

• Cultural and legal diversity: Misunderstanding local legal norms, regulatory landscape, or dispute resolution mechanisms can complicate outcomes. 

Case study: Developer-contractor dispute in Lusail, Qatar 

Background: A Qatari real estate developer engaged with a European construction firm for a US$ 200 million luxury residential project in Lusail. The contract was governed by Qatari law and included an arbitration clause provided for disputes to be resolved by ICC Arbitration seated in London.

Issue: The project faced delays due to pandemic-related disruptions. The contractor invoked force majeure and sought extensions of time and cost adjustments. The developer counterclaimed for breach of contract and liquidated damages. 

Resolution strategy: 

• ICC Arbitration was initiated in London. 
• Coordination with local and European counsel helped secure interim relief on overseas assets. 
• The arbitral tribunal awarded US$ 35 million in damages and partial legal fees. 
• The arbitral award was recognised and enforced in the contractor’s home jurisdiction, enabling recovery of losses and project continuation with a new contractor. 

This matter highlights the importance of well-drafted dispute resolution clauses, as well as a coordinated legal strategy across jurisdictions. 

Practical considerations for cross-border commercial engagements 

To mitigate risk and ensure effective dispute resolution when operating internationally, businesses should: 

• Draft clear dispute resolution clauses identifying governing law, jurisdiction, and arbitration venue and seat. 
• Conduct enforceability assessments before entering into cross-border contracts. 
• Retain legal counsel with expertise in both local laws and international frameworks. 
• Consider pre-dispute strategies such as contract risk audits and compliance checks. 

Conclusion 

Cross-border disputes can disrupt operations, damage reputations, and strain commercial relationships. However, with proper planning and experienced guidance, such disputes can be resolved efficiently – preserving both commercial value and protecting long-term interests. 

*Disclaimer: The content of this article may not reflect the official views of the International Chamber of Commerce. The opinions expressed are solely those of the authors and other contributors.