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Blog post

Robin Musch

1 min read time

July 1, 2026

Arbitration or court?

In international disputes, you are often faced with a choice: court or arbitration? Both have strengths and weaknesses. In our practice, we advise on the most suitable route for each type of contract. For some disputes, arbitration is superior due to international enforceability; for others, a court is more effective and cheaper. A good choice starts in advance in the contractual dispute clause.

What are the legal implications?

Arbitration and court proceedings differ in terms of costs, speed, confidentiality, the expertise of the decision-maker, international enforceability, and possibilities for appeal. A wrong choice leads to proceedings that do not suit the type of dispute or the opposing party. Internationally, costs and effectiveness vary by the type of institution and the seat of the court.

What steps do you take?

Arbitration is governed by national arbitration law (the Netherlands, Articles 1020-1076 of the Dutch Code of Civil Procedure) and international treaties. The New York Convention of 1958 (170+ countries) makes arbitral awards enforceable worldwide. Brussels I-bis (Regulation 1215/2012) governs judgments of EU courts. The Hague Judgment Convention 2019 increases international recognition of court judgments. Major arbitral institutions: ICC, LCIA, NAI, SIAC, HKIAC.

What risks and costs do you face?

Court proceedings are public, have limited international enforceability outside treaty areas, and the judge is not always a specialist. Arbitration is more expensive (institute fees, arbitrators) and offers virtually no right of appeal. For smaller disputes, arbitration is often disproportionately expensive; For major international disputes, arbitration actually offers a superior balance.

How did a client handle this?

We represented a Dutch company and an Indian partner with an original choice of forum for an Indian court. The proceedings lasted seven years without a resolution. Upon renegotiating with another partner, we chose SIAC arbitration in Singapore under Dutch law. A similar dispute yielded an enforceable ruling within 14 months. International enforcement under the New York Convention was arranged in two weeks.

What is your first course of action?

Choose arbitration for large, international, confidential disputes, especially in less developed legal systems. Choose a court for smaller disputes, B2B within the EU (Brussels I-bis is effective), or where precedent is desired. Tailor the seat, language, number of arbitrators, rules, and choice of law to your situation. Combine with an emergency arbitrator for urgent measures. See also our article on The benefits of international arbitration.

Frequently asked questions

How much does arbitration cost?
Arbitration typically costs more than court proceedings due to institute fees and arbitrator fees. For disputes up to 500,000 euros, total costs often amount to 100,000 to 300,000 euros; for larger disputes, millions are not uncommon. The ICC and LCIA apply tiered rates linked to the value of the claim. For medium-sized disputes, the NAI offers good value for money.
Is arbitration always confidential?
By default yes, provided the chosen rules guarantee confidentiality. Not all rules do this automatically; the ICC, LCIA, NAI (NAI Rules Article 6), and SIAC have strong confidentiality rules. English common law recognizes an implicit duty of confidentiality. For a guarantee: explicitly stipulate confidentiality in the arbitration clause.
Can I challenge an arbitral award?
Limited. Under most legal systems and the New York Convention, only specific grounds for annulment are available: lack of jurisdiction, violation of due process, and public order. Pursuant to Article 1065 of the Dutch Code of Civil Procedure, similar grounds for annulment apply in the Netherlands. No substantive review takes place. This makes arbitral awards predictable and quickly enforceable. Undecided between arbitration and the courts? Schedule a no-obligation strategy consultation via muschlegal.nl. Musch Legal – your specialist in international commercial law.