Akin Gump Litigators Examine Likely Post-Pandemic Increase in Arbitration

Akin Gump litigation partner Susan Leader and associate Josh Rubin have written the article “With Global Court Backlogs, Parties May Turn to Arbitration to Resolve Pandemic-Related Disputes,” which was published by The Impact Lawyer. The article looks at the impact of the COVID-19 pandemic on court proceedings and discusses an expected uptick in arbitration in order to “avoid further delay and uncertainty.”

Leader and Rubin write that even after courts reopen, they will “need to wade through a backlog of motions and trials before reaching newly-filed cases, putting increasing pressure and strain on courts and litigants alike.” They also expect “an influx of contract lawsuits asserting force majeure or frustration-related defenses based on alleged inability to perform” with companies pointing to the pandemic as the trigger for force majeure clauses. Contract counterparties, meanwhile, “will demand compliance with contracts, focusing on the parties’ agreement of risk allocation.”

The authors then point to some of the benefits of arbitration over litigation, including savings of time and money, its finality and enforceability, and the greater availability of phone conferences and hearings. The article concludes with the observation that post-dispute arbitration agreements will likely become “an attractive option to attorneys and their clients across the globe.”