New Court at The Hague to Arbitrate in Global Financial Disputes
Financial firms and investors in complex cross-country disputes can turn to a new tribunal in The Hague, the latest of six international courts in the Netherlands.
“National courts and ad hoc arbitration until now haven’t succeeded in unambiguous, authoritative jurisprudence,” Jeffrey Golden, chairman of the management board for the new Panel of Recognized International Market Experts in Finance, said in a statement. The arbitration and mediation service, known as Prime Finance, will officially open today.
The credit crunch and the collapse of Lehman Brothers Holdings Inc. (LEHMQ) led to an increase in lawsuits between banks and other financial institutions. Regulators are concerned that national courts lack the time and expertise to properly adjudicate the disputes.
“This court can be used by large financial institutions, such as banks and large asset managers, and eventually also by states that have a dispute with financial institutions,” Bernard Verbunt, a lawyer at Simmons & Simmons in Amsterdam who specializes in banking and financial services disputes, said by telephone.
The tribunal, at the Peace Palace in The Hague, can call upon almost 100 experts to arbitrate or mediate in cases involving derivatives and structured financial products.
The panel was set up by the World Legal Forum following a meeting of lawyers, financial experts, regulators and central bank representatives from the U.S., Europe, and Asia in 2010.
To contact the reporter on this story: Jurjen van de Pol in Amsterdam at jvandepol@bloomberg.net.
To contact the editor responsible for this story: James Ludden at jludden@bloomberg.net.
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