Lawsuits Not Always the Answer

Disputes between buyers and sellers, franchisees and franchisers, property owners and construction companies are pretty common. They could happen anywhere, any time, and they do.

But when they occur across borders, these conflicts suddenly become more dicey. Which laws to follow? Which judges to submit to?

What happens if one side loses, returns home and then refuses to follow the court’s ruling?

It can get messy.

For that reason, many lawyers suggest arbitration and mediation as cheaper and faster alternatives.

It simply doesn’t make sense to try to design a unified set of laws that would apply to the United States, Canada and Mexico, many lawyers contend.

Instead, many advocate forming arbitration and mediation panels.

The United States, Mexico and Canada are members of a treaty under which each country has agreed to uphold “awards” issued by arbitrators and mediators in the other countries.