Is it possible to have an arbitration in Japan governed by another country’s law?

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All arbitrations held in Japan are governed by the Japan Arbitration Act.  However, this Act merely governs the process and rules of arbitration and, for the most part, does not touch on the content of the dispute.   When it comes to the law being applied to the dispute between the parties, an arbitration in Japan can apply the law of any country, not just that of Japan.

This flexibility is especially important when the governing law of the contract in dispute has already be designated as the law of a foreign country.  For example, these days many international business contracts specify the law that governs their content.  This allows the parties to have clarity about how the terms of the agreement are likely to be interpreted by a judge or arbitrator.

In order to cater to the needs of modern businesses, arbitration in Japan allows for the application of foreign law in arbitrations held in Japan.  Therefore, it is entirely possible to have an arbitration in Japan that centers around a contract governed by California law, Singapore law or the law of any other country in the world.  Even if the arbitration is held in Japan, the arbitrators who hear the case will apply the foreign law in making their decision on the dispute.

If you would like to have a dispute settled through arbitration, please contact our experienced team to set up a consultation.