arbitration

Normally each party will bear their own legal costs during an arbitration.  This creates a fair standard where each party has a firm grasp of the eventual legal fees.  However, for parties who want to employ a different type of fee arraignment, it is possible to draft the arbitration agreement to fit their needs. 

Similar to a lawsuit in court, parties to an arbitration are allowed to have legal counsel represent their interests to the panel of arbitrators.  However, while legal representation in litigation is limited to attorneys licensed in Japan, there is no rule in the Arbitration Act preventing foreign lawyers from representing clients in an arbitration. 

While arbitration provides a cost effective and faster alternative to filing a lawsuit in court, there are some similarities between the two systems.  Two of the biggest similarities are the way notice is served and the participation of expert witnesses.

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.