The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas would likely face “tremendous resistance” from the international bar if foreign attorneys are not allowed to represent clients in arbitration hearings in this nation, a Washington-based attorney describing this as a “significant impediment”.

Matthew Kirkland, partner at the Fulbright & Jaworski firm’s Washington office, while speaking at the third annual Arbitration and Investment Forum, said restrictions on foreign lawyers appearing before arbitration tribunals in the Bahamas could act as a deterrent to this nation becoming an attractive hub for alternative dispute resolution (ADR).

Echoing the sentiments that some local attorneys have expressed publicly, Mr Kirkland suggested that prospects for the Bahamas becoming a successful arbitration centre would be dim if this nation was not flexible on overseas advocates. Establishing the Bahamas as an International Arbitration Centre player, particularly in niches such as maritime and financial services disputes, has been a key strategic focus for successive administrations.

“The restriction on foreign lawyers appearing before international arbitral tribunals, to the extent it exists, has to be looked at,” Mr Kirkland said. “To maximise the amount of arbitrations coming here, that’s going to be a deterrent.

“The reason why is because when seats are being selected, they are going to be picked by clients on the recommendations of their attorneys. No attorney in an international dispute is going to recommend that their client pick a jurisdiction which they are not able to practice in when a dispute arises. You will get tremendous resistance from the international bar on selecting seats where there is restriction on foreign attorneys being able to practice.”

From a competitive standpoint, Mr Kirkland said established arbitration centres such as London, New York and Singapore did not have such restrictions. “There are jurisdictions that don’t have that restriction, London and New York for instance,” he added.

“It’s fantastic to have arbitration in the Bahamas, but why would you pre-select the Bahamas if you have those types of restrictions? That is a significant impediment.”

Mr Kirkland added that attorney quality in the Bahamas was not in question. He said he did not believe that requiring foreign attorneys to appear in arbitration disputes along with Bahamian counsel would be a problem. “I wouldn’t say it would be a positive, but it wouldn’t be a terrible thing,” he said.