The onset of globalisation has allowed many Italian
entrepreneurs and companies to expand their businesses outside of
Italy. Cross-border investments and transactions have presented
many new opportunities. However, with increased globalisation, it
is important for Italian companies to be alert to the risks of
potential disputes with foreign counterparties.
When a dispute arises, resorting to foreign domestic courts is
unlikely to be the best option for Italian companies. The risks
range from judges who may be unfamiliar with foreign applicable law
to bias, lack of judiciary's independence and impartiality,
lengthy proceedings, corruption and even bribery. In addition,
litigating in foreign courts involves having to deal with the
uncertainties of unknown legal systems, which increases costs of
proceedings.
