December 2018 Handle with care | Page 28

Special report: Arbitration best opportunities for boutique firms dedicated to international arbitration are complex cases that require international experience both as counsel and as arbitrator. He adds that the ability to work in more than one language is vital. Derains continues: “Proactive thinking and original procedural strategies are necessary, as well as bringing flexibility and tailor- made solutions.” Whether it is domestic or international, focused on commercial or investment cases, arbitration requires highly specialised lawyers, according to Carlos A. Soto, founding partner at Carlos Soto & Asociados in Peru. “Arbitration in Peru has increased exponentially in recent years, and this has generated an increase in conflicts of interest in the designation of arbitrators, which is why our law firm decided to dedicate itself Yves Derains, Derains & Gharavi International exclusively to arbitration,” he says. “One of the reasons for the growth of arbitration in Peru is the obligation to resort to arbitration to solve public contracts disputes – all contracts contain an arbitration clause,” Soto adds. “From the smallest municipal government purchase to the construction of a mega project, in the event of a disagreement between the two parties, they must resort to arbitration, and this has meant that, when we have had moments of huge public investment in infrastructure, the number of arbitration cases has increased.” Soto says that the increase in the number of arbitration cases in Peru has not led to a corresponding increase in quality. He adds that the quality must be improved if arbitration is to be “consolidated as an effective and efficient mechanism for dispute resolution”. Soto concludes: “An improvement of legislation and greater scrutiny in the selection of lawyers for the role of arbiter will be fundamental elements to increase the quality of arbitration.” While arbitration may be growing in popularity in Latin America, it is clear that steps need to be taken to improve the quality of the services on offer to clients. Multilingual lawyers in demand for Latin American Arbitration Gary Davidson Clients from Latin America increasingly favor Miami as a seat for arbitration because the city is seen as a “gateway to the Americas”, according to Díaz Reus & Targ partner Gary Davidson. Law firms with a presence in Miami are well-positioned to pick up such work, and Davidson says: “The principal opportunity for our firm in relation to arbitration is that we have the capability to undertake, arbitration in more than one language, and regularly do.” Davidson adds that his firm currently has three lawyers involved in a commercial arbitration case in Panama, where the case will be conducted entirely in Spanish. ‘Staggering amounts of money’ He explains that, in Latin America, the majority of disputes that end up in arbitration involve private commercial matters. 26 • THE LATIN AMERICAN LAWYER • December 2018 Less common are disputes that arise from rights based on multilateral and bilateral treaties. “However, while these treaty-based disputes are more infrequent than private commercial ones, the amounts of money at stake can be staggering,” Davidson says. Criminal matters “In addition to our work in the areas of international litigation and arbitration, the firm has well-known expertise in international criminal matters, and this helps us address such issues when they arise in arbitration—directly or indirectly,” Davidson explains. He also notes that, while clients come to the firm “principally because of its reputation for handling international arbitration and litigation work, they also discover that we treat clients like family and are available around the clock to provide guidance and counselling.” www.thelatinamericanlawyer.com