Disadvantages of Litigations in Import Export Business


Basic Limitations of Litigation in International Trade

Disadvantages of Litigations in Import Export Business1. Slow Process:
Court process is proverbially slow, time consuming and formalistic.

2. Avoidable Necessity of Expert Witness and other Evidence: In international contracts, practices, procedures and customs are different. A judge however well versed may be, in law, can not be expected to know all these intricate matters. So, in courts, to educate the judge about these practices, witnesses who are experts and having knowledge in the field have to be produced to prove the practices, even before the evidence is established.

3. Inconvenience to the Parties: Court timing and date of hearings may not be convenient to the litigants. Most of the time, cases are postponed and in that process months drag on even for completion of one witness. Even after day's long waiting for hearing, one may know, at the end of the day, that the case is adjourned for two months due to non availability of the other advocate!

4. Adverse Public Image: Court proceedings are never secret. Media always covers the developments in important cases. Even the superior court judgments are published. Matters, which have been confidential till the case is brought to a court of law, become topics for public discussion that may bring notoriety, loss of goodwill and long-standing reputation.

5. Bitterness and Disruption of Trade Relationships: When a matter goes to a court of law, it is immaterial which party may win as the age old established relationship, after the case is brought to litigation in a court, comes to an end with only acrimony and bitterness.

6. Different Laws and Procedures: International trade laws and procedures are more complicated. Litigation in foreign courts is more expensive and difficult in comparison to the domestic courts.



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