New Law Will Establish International Mediation/Arbitration Centers in New Jersey
Bipartisan legislation sponsored by Assemblyman Jamel Holley to help attract and retain businesses in New Jersey by simplifying the international mediation and arbitration process for those that choose to set up shop in state was signed into law on Monday.
“When we talk about the need to grow our economy and create good, high-paying jobs, one of the surest ways to do that is to create a climate that is friendly to companies doing international business. Globalization has made this a must,” said Holley (D-Union). “Given New Jersey’s unique position in the region, we should be capitalizing on the opportunity to attract international business, trade, and commerce.”
Holley noted that inevitably, from time to time, disagreements and disputes will arise stemming from international commercial transactions that can be resolved through alternative methods rather than the more costly and time-consuming route of litigation.
The new law (S-602/A-1138), the “New Jersey International Arbitration, Mediation, and Conciliation Act,” will create international arbitration/mediation centers or hubs in New Jersey to facilitate the resolution of international business, trade, commercial, and other disputes by means of arbitration, conciliation, mediation, and other means as an alternative to resorting to litigation.
Presently, only nine other states have passed similar legislatin.
“Mediation has become a preferred method for resolving international disputes because it’s faster, more flexible, less costly and minimizes hostility. Any company concerned about the bottom line is going to keep these factors in mind when looking for somewhere to locate.
“By encouraging the development of New Jersey as a center for the resolution of international business disputes, we can position ourselves as a beacon for global trade. This translates into new employment opportunities, increased revenue, tax stabilization and all the ancillary benefits that accompany a major corporation setting up shop in a community,” added Holley.
The law will allow certain types of non-profit entities in the state to organize arbitration/mediation centers or hubs, whose principal purpose would be to facilitate the resolution of international business, trade, commercial, and other disputes between persons by means of arbitration, mediation, conciliation, and other means as an alternative to traditional litigation.
Arbitral or other awards or settlements issued pursuant to the law by a center are to be enforced by the courts of this state as permitted by law and consistent with the Federal Arbitration Act and the enforcement provisions of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, as implemented by the Federal Arbitration Act.