The Alabama arbitration: a historic precedent for dispute resolution

One of the earliest and most influential examples of inter-state arbitration — the Alabama Claims case between the United States and the United Kingdom — remains a cornerstone of modern international dispute settlement.

By choosing arbitration over confrontation, both states reinforced the value of an international order that prioritises legal resolution over power politics — a principle that continues to guide today’s arbitral institutions and treaty frameworks. (Source: Jonathan Sumption, ‘International Tribunals: For and Against’, 2025).

In the context of modern developments, as peace talks on the Russo-Ukrainian conflict have intensified in recent days, one may wonder what the future holds post-hostilities for inter-state and investor-state adjudication. Some believe that the number of claims, held back until the end of the conflict, would increase significantly once peace is reached. Others suggest that potential litigants may instead seek to build bridges for business and other cooperation, avoiding contentious resolution of their differences.

Whatever scenario unfolds, Gherson’s arbitration, civil disputes and sanctions practices – representing clients in investment and commercial arbitration and sanctions disputes – remain committed to achieving just outcomes in complex cases.

How Gherson can assist?

Gherson’s Litigation and Arbitration Team are highly experienced in advising on international commercial litigation and arbitration matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, or send us an e-mail. Don’t forget to follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2025