Chicago, Chicago, that Arbitratin’ Town
Towering skyscrapers. World class culture, music, and art. Fine dining. Add in sophisticated lawyers and law firms, top corporations, and best in class meeting facilities. Who wouldn’t want to arbitrate in Chicago?
Arbitrators are drilled from early in their careers to pick an arbitrator friendly location for arbitrations. Beyond what Chicago offers as a city, here are three reasons Chicago is one of the arbitration friendliest places to pick.
One, 710 ILCS 5, the Illinois Uniform Arbitration Act. This law gives force to written domestic and international arbitral agreements, provides for arbitrators to hear the matter, and provides for the arbitrators to compel discovery. It also provides for the Court to step in when asked, to compel or stay arbitration, to assist with discovery disputes and enforcing awards, when asked, and otherwise for the Court to step aside and let the arbitrators do their job without interference or oversight.
Two, 710 ILCS 30, the Illinois International Arbitration Act. This law tracks the UNCITRAL model law. It broadly defines the term “international” with respect to arbitration, making the provisions of the law available to a wide range of matters. It expands on the powers of the arbitrators to conduct the proceedings, and includes explicitly such well-developed principles of international arbitration such as the “kompetenz-kompetenz” doctrine. It is a sophisticated law, drafted for the sophisticated practice of international arbitration.
Three, LR 80, Local Rule 80 of the United States District Court of the Northern District of Illinois. While the two Illinois state laws apply in the entire State of Illinois, this rule applies only within the Northern District of the federal court, which includes Chicago. This rule does two things which benefit international arbitration. First, the rule exempts international arbitration matters from certain pre-trial administrative procedures, when applying to the federal court for assistance. Second, it allows foreign lawyers, including both lawyers from other states of the United States, as well as lawyers from foreign countries, to be admitted pro hac vice, and to argue as if a member of the general bar of the US District Court for the Northern District of Illinois. While many parties may choose to have local counsel, LR 80 gives parties the flexibility to appear by lawyers from their home jurisdictions, with whom they have often been working to prepare for the arbitration, and who have been participating in the arbitration from the beginning.
Chicago is known for its friendly atmosphere and friendly people. And with an arbitration friendly legal regime, lawyers and arbitrators from all over will surely be singing, “it’s my kind of town.”