September 02, 2020 Feature

Recent Cases Involving Arbitration of Aviation Disputes

By Roy Goldberg
guvendemir/E+ via Getty Images Plus

guvendemir/E+ via Getty Images Plus

Ensure that the underlying agreement contains a properly drafted and enforceable arbitration clause and that legal arguments for enforcement are not waived.

It often makes solid business sense for aviation entities to enter into arbitration agreements as part of the core business contract, given the international (cross-border) nature of the aviation industry, the complexity of disputes involving aircraft, and the time commitment, expense, and onerous “discovery” associated with federal and state court litigation in the United States. Depending on the complexity of the transaction and ultimately the amount in dispute, the arbitration panel may consist of either one or three panelists. The American Arbitration Association (AAA) is a popular choice for the maintenance of the case and selection of the panel, and New York state law is often the choice of law.

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