This document provides an overview of legal systems and practices in various countries and regions and offers practical tips for dealing with international legal matters. It begins with a table that summarizes and compares key aspects of dispute resolution and contract law in Russia, China, Mexico, India, Brazil, UAE, and Italy. The document then offers suggestions for working with international legal issues, such as accepting that differences exist, ensuring effective communication through language support, carefully selecting qualified local counsel, building trust with all parties, and preparing for unexpected challenges. The overall message is that with diligence, planning, and patience, practitioners can successfully navigate international legal matters.

1. Practical Tips for Dealing with
International Disputes (or any
other legal matter)
June 2013
Andrew C. Spacone, Esq.
Adler Pollock & Sheehan P.C.
Formerly Deputy General Counsel & Assistant Secretary,
Textron Inc.
Copyright 2013, Andrew C. Spacone . All rights reserved.

2. 2
The Landscape
• What’s the same?
• What’s different?
Representative Samples:

3. 3
Non-U.S. Transaction and Litigation
Risk Assessment Issues Summary
Russia
Civil Justice Common law
System
Civil law
Rule of law accepted/adhered to
Relevant court(s)
Quality/experienced
judiciary -Trial level
-Appellate level
Objective/independent judicial
system
China
Mexico
India
Brazil
U.A.E.
Italy
Generally
No (1)
Generally
No (1)
Generally
No (1)
Yes (1)
No
No
(1)
No
Generally
Yes (2)
Yes
Yes
No
Yes
Yes
Yes
No
No
No
Yes
Yes
Yes
Yes
Arbitrazh People's
courts;
courts (2)
civil courts
More or
Less
Federal
Supreme
and state
Court;
courts of
High
ordinary
Courts;
jurisdictio lower civil
n
courts (2)
(2)
Federal
Civil
Supreme courts;
Court;
Shari' a
Superior courts (2)
Court of
Justice
Tribunal,
Court of
Appeal,
Supreme
Court (1)
No
No
Yes
More or
Less
No
Yes
More or
Less
Better (3)
Better
Yes
Yes
Better (3)
Yes
Sometimes
No (4)
No
Yes (3)
Yes (1)
Usually yes
Yes (2)

4. 4
India
Brazil
U.A.E.
Italy
No
No (4)
Somewhat
(2)
No
No (3)
Yes (5)
Yes (6)
No
Yes (3)
No (5)
Yes (6)
Yes
Yes (3)
No
Yes (4)
No
Yes (4)
Yes
No (7)
No
Yes
No
Sometimes
(8)
Yes (8)
No
No
Generally
Yes (5)
Yes
Yes (9)
Yes
Yes
No (6)
Yes (9)
Sometimes
Yes (4)
No
Generally
No (10)
No (10)
No
No (10)
Witnesses at trial/hearing
Yes
Yes (5)
Yes
Yes
Court may question witnesses
Yes
Sometimes
(11)
Yes
Yes
Yes
Parties may question witnesses
Yes (11)
Yes
Yes
Yes
Yes
Russia
China
Efficient System
Yes (5)
Yes
Timely decisions by courts
Broad grounds for appeal of
lower level decisions
Yes (6)
Yes (7)
Costly
Judicial panels presiding over
cases
Judge/court controls the judicial
process as opposed to parties
Judge/court participates in
process of proof
taking/gathering of evidence
US style discovery
Court may appoint experts
Mexico
Yes (6)
Sometimes Sometimes
(7)
Yes (8)
Yes (4)
No (9)
Somewhat
(5)
Generally Sometimes,
No (6)
via courtappointed
experts
No (7)
No (5)
No (7)
No
Yes
Yes
Sometimes
(6)
Yes
Yes
No (8)
Yes (7)
No
Yes
Yes
Yes (8)
Yes
Yes

5. 5
Russia
China
Mexico
India
Brazil
U.A.E.
Italy
Parties may appoint experts
No (12)
Yes (12)
Yes
Yes (11)
No (9)
Yes (9)
Yes
Expedited/summary proceedings
available
Civil juries
Yes (13)
Yes (13)
No
Yes (12)
Yes
Yes (10)
No
No
No
No
No
No
Standard of proof
No (14)
No (14)
No
No
Yes
No (11)
No
Burden of proof
Initiating
party (15)
Claimant
Both
parties (7)
Claimant
(13)
Plaintiff
Claimant
(10)
Attorney client privilege
recognized
Yes (16)
Somewhat Somewhat
Yes
Usually
the
Claimant
(10)
Yes
Yes
Yes (11)
Foreign lawyers allowed
Yes
No (17)
No
No (14)
Yes (11)
Yes
Lawyers need to be licensed to
appear in court
Quality local law firms
No
Yes (18)
Yes (8)
Yes (15)
Yes
Yes (12)
Yes (12)
Some
Some
Yes
Yes
Yes
Some
Yes
Provisional/interim/property
preservation measures available
Yes
Yes
Yes
Yes (16)
Yes
Yes (13)
Yes (13)
Contingency fees allowed
No
Yes (19)
Yes
No
Yes, in
certain
cases
No
No
Yes (20)
Some (20)
No
Yes (17)
Yes
No
Yes
Cost-shifting allowed
Yes (8) No (9)
No

6. 6
Russia
China
Mexico
Yes (21)
Yes (21)
No
Compensatory damages lower
than US
Yes
Yes
Yes
Punitive or exemplary damages
allowed
No
Enforcement of
Yes
Class actions allowed
India
Brazil
U.A.E.
Italy
No bar (18)
Yes
No
Yes (14)
Yes (19)
Definitely
Yes
Yes
No (12)
No (14)
No
Yes
Yes
Yes
Sometimes
No
Generally
No (20)
(22)
Sometimes Sometimes
Yes
Difficult
Difficult
judgments More
Difficult
(22)
No (23)
Yes
Yes (21)
Yes (13)
More
Difficult
(15)
Yes (15)
Mediation encouraged/required
during litigation
Yes
Yes (24)
Yes
Yes
Yes
Yes
Yes (16)
Arbitration well
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes (9)
Yes
Yes
Yes
Yes
Yes
No (25)
Yes
Yes
Yes
Yes
Yes
Domestic
-Foreign
Alternative
Dispute
Resolution
accepted Domestic Foreign
Ad hoc arbitration allowed

7. 7
Russia
Preferred arbitral body/location
Mexico
Brazil
U.A.E.
Italy
ICA,
LCIA,
SIAC (22)
DIAC,
ADCCI
(16)
CAM,
Milan
(17)
Yes
Yes (18)
Yes (24)
Somewhat
(27)
Yes
Yes (23)
Costly
No
No
No
Sometimes
Yes
Sometimes
Yes
NY Convention signatory
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes (25)
Yes (28)
Yes
Yes (24)
Yes
Yes
Yes (19)
Yes, with
some
exceptions
where
state
immunity
applies
No (26)
Yes
No (29)
Yes (27)
Yes (30)
Arbitration rules well-developed
Government entities subject to
arbitration
Local litigation preferred to
arbitration
Arbitration statute
ICC,
ICC,
outside of CAM,
mainland CANAC
China
O
(26)
(10)
India
ICC,
CCBC,
FGV or
ANCHAM
in Rio de
Janeiro or
Sao Paulo
Yes
Respected arbitrators
ICAC, or
foreign
arbitration
venue (23)
China
Yes (11)
No
Yes (12)
Yes
Maybe in Yes, within
some
limits
specific
cases
Yes
No
Generally Sometimes
no (14)
Yes
Yes (25)
Yes
Yes (17)
Yes (20)

8. 8
Russia
Broad exceptions
to finality/grounds
for appeal
Broad subject matter (e.g.,
contract and tort)
Enforcement of arbitration
China
Mexico
India
Brazil
No (28)
Sometimes
No (13)
Sometimes
(26)
No (15)
Yes (29)
Yes
Yes (14)
Generally
yes (27)
Yes (16)
Yes
Sometimes
Difficult
Yes
Yes
Yes
Sometimes
Difficult
Yes (15)
Generally
Yes
Generally
Yes
No
Yes
No
Yes (29)
Yes
Yes
Yes (33)
Generally
Yes (16)
Yes (34)
Yes (17)
Yes (30)
Yes (28)
Yes
Yes (31)
-Domestic
Contracts
-Foreign
Well-developed contract law Yes, but
not all
clauses
enforceable
(32)
Sometimes Sometimes
Yes
Yes (21)
Yes
Yes
Yes (22)
Yes
(18)
-Foreign
Parties free to establish
choice of law governing
arbitration
Italy
Yes
awards -Domestic
Yes (30)
U.A.E.
Yes
Yes
Yes
Somewhat
Yes

9. 9
Respect for contracts
-Adherence to contract terms
China
Mexico
India
Brazil
U.A.E.
Italy
Yes
Russia
Yes
Yes
Yes, with
some
restrictions
Yes
Somewhat
No
Yes
Sometimes
(19)
Case-bycase basis
Somewhat Somewhat
-Lax attitude to contract
terms
-Extrinsic evidence
admissible
Case-bycase basis
Yes, to
interpret
ambiguities
Freedom of contract recognized
Yes (34)
Priority of law over contract
Yes (35)
Yes, to
interpret
ambiguities
Yes
Generally
No (31)
Generally
Yes (17)
Yes (20)
Yes, to
interpret
ambiguities
Yes (37)
Yes (18)
Yes
Yes
Yes
Yes (25)
Yes
Yes
Yes
Sometimes
Sometimes Sometimes
Parties free to establish
Yes
Generally
choice of law governing
Yes (38)
contracts
Different rules for contracts with Generally Sometimes
governments
No
(39)
Yes (19)
Generally
Yes (32)
Generally
no (18)
Yes, in
principle
Yes
Yes
No (33)
Yes
Yes
Sometimes
Extensive formalities for
contracts
Yes (20)
No (34)
Yes
No
Sometimes
Generally
No (36)
No (40)

10. 10
Russia
"Doing Business" 2010
Ranking for Enforcing
Contracts (ranked from
numbers 1 through 183),
available at
www.doingbusiness.org
2
China
Mexico
India
Brazil
U.A.E.
Italy
19
18
81
182
100
134
156
The information in the table and notes regarding Russia was confirmed and supplemented by Kent Gross of Orrick, Herrington & Sutcliffe.

11. 11
Now That We Have
the Legal Landscape,
Practical Suggestions for
Dealing with International Legal Issues
• Accept the fact that there is a lot you don’t know
• Accept the fact that you and your client will need
to be educated and the same for foreign counsel
• Be prepared to spend more time and money than
you would if it were purely a domestic matter

12. 12
Now That We Have
the Legal Landscape,
Practical Suggestions for
Dealing with International Legal Issues (Cont’d)
• Many of the lawyers and law firms you will work
with are used to dealing with U.S. clients
but not all, and this increases the risk profile and
need for their education
• Language, Language, Language...do not
underestimate the problems (or more
diplomatically, barriers) this can create
ditto for culture

13. 13
Now That We Have
the Legal Landscape,
Practical Suggestions for
Dealing with International Legal Issues (Cont’d)
• The practice of law may be different in important respects (e.g.
privilege, civil justice system, courts)
understand the differences early
• Get the right* local lawyer/law firm – absolutely critical because as
a general proposition you will rely more heavily on their advice than
you would with U.S. counsel

local with good English capability?
Or
 U.S. ex-pat with excellent language capacity?
*Right: requisite legal skills and trust form a solid relationship

14. 14
Now That We Have
the Legal Landscape,
Practical Suggestions for
Dealing with International Legal Issues (Cont’d)
Experience with U.S. clients helps greatly
• Don't fall into the trap of thinking (and you will) that
because foreign counsel doesn't speak English as well as
you that they are any less smart
 humility helps because they have a perception of you as well
• Don’t assume local counsel understands your client’s
business including accounting and the regulatory nuances
(e.g. FASB 5 reserve rules for contingent liability)
 Setting out the ground rules/objectives early (e.g.
“litigation plan”) is important
And reduce the information/education gap

15. 15
Now That We Have
the Legal Landscape,
Practical Suggestions for
Dealing with International Legal Issues (Cont’d)
• Try to understand the relevant court/criminal justice system but recognize
that you may never fully understand it — which again, makes selection of
the right local counsel absolutely critical
common law v. civil law
with all due apologies, some civil/criminal justice systems are corrupt
• Build trust with local counsel by trying to learn something about their
culture and even language, and above, earn their respect
 but don't overdue the language bit unless you are fluent (it can be patronizing)
 And can lead to even more confusion

16. 16
Now That We Have
the Legal Landscape,
Practical Suggestions for
Dealing with International Legal Issues (Cont’d)
• Understand the quality of the judiciary
 how does the court process work?
 how long do matters take to resolve?
• Expect the unexpected and be patient
 here is an area where rework is critical
• Get advice in writing on important issues — and ask questions if you don't
understand — and ask again
 see ―rework‖ above
• Unless your client is very sophisticated, he or she is not going to understand
the differences, especially when bad outcomes occur
 prepare and educate your client early
• Be patient – ―rework‖ is not necessarily a bad thing

17. 17
Now That We Have
the Legal Landscape,
Practical Suggestions for
Dealing with International Legal Issues (Cont’d)
Bottom line: As you move from east to west and
north to south across the globe, the "differences"
that will impact your issue increase.
Recognize and understand the differences and
similarities early
With proper due diligence, planning, and patience
including attention to the nuances, (and getting
the "right" lawyer/law firm) you can get through
the matter in good shape (or at least significantly
increase the chances of a good result)