International Dispute Settlement. Galactic Commodities Inc case Essay

International Dispute Settlement. Galactic Commodities Inc case studies - Essay Example In this discussion, decisions enacted as arbitral awards will be considered; this award means that settlements are implemented after being recorded in an arbitral proceeding. Different issues present themselves in this situation in instances when the law would allow the â€Å"settlement reached in conciliation to be recorded in an enforceable arbitral award† 4. One such issue pertains to form requirements which vary from country to country. An issue in this case is if there is a requirement for clarification for the settlement to be recorded in an award. Should the payment and performance obligations agreed upon be written in much the same way as awards? Or should the tribunals reconceptualize such obligations in the award into others?5 The award based on agreed terms should therefore be clear enough to be enforced without the need for reformulation of interpretation. Recording settlements in an award are based on providing finality and enabling a faster enforcement of the set tlement6. In instances when the parties call for an arbitral tribunal to carry out an award based on agreed terms, risks are often seen and problems of clarity can arise when the parties negotiating settlement are focused on the elements of the settlement, not on the need to fulfill the formal requirements of awards7. An issue may also be seen when the settlement of the parties resolves only some of the issues being forwarded8. This situation can sometimes be easily resolved when a partial award would be given and the other issues are left unresolved. A greater issue results when the settlement includes matters â€Å"which are not within the jurisdiction of the arbitrators, either because such matters fall outside the arbitration agreement or because they have not been submitted to the arbitrators for determination†9. In instances when the settlement resolves matters which are not included in the arbitration agreement, it is clear that the arbitral tribunal does not have cove rage in resolving the issue and rendering awards on the dispute. Another issue which would arise relates to the fact that the settlement gives rights to a party who is not included in the arbitration. This is seen in instances when both or one of the parties belong to a group of corporations where the settled performance must be made or the rights must be exercised by a parent or a sister company10. Awards on the terms agreed upon cannot bind the rights of the third party. The follow-up question in this case is if the arbitral tribunal would still record the settlement in the award. In these instances, the dispute raised before the tribunal is resolved and the arbitration is terminated. If the law allows the tribunal to record the settlement in the award or when the different parties allow the tribunal to record the settlement, the tribunal would now be confused and would be in a dilemma on what to do11. Still another question is if statements shall be possible to record in award fo rms on terms agreed upon. Motives for settlements recorded in awards on agreed terms may not be successfully captured in declaratory statements. But on the other hand, the res judicata effect may already be sufficient reason12. The right to implement awards on agreed terms can call for requests by both parties. The issue arises on what the tribunal should do if the settlement