RESEARCH PURPOSE

Recent problems over business disputes

With today's globalization rapidly infiltrating social life, Japan has recently seen significant increases in the number of business disputes before courts. In the past, Japanese companies made every effort to avoid dispute resolution by courts. This tendency was particularly strong among large corporations; to settle their disputes, government or administrative authority intervened, mostly in the form of administrative guidance. With the relaxation of control by administrative authority and the expanded scope of free business activities in recent years, more disputes arising from business activities have been brought to court. Internationally, with market economy expansion in the wake of the collapse of the former Soviet Union and other socialist systems, business disputes have inevitably arisen as free economic activities have increased. To ensure rational settlement of such disputes, it is necessary to fundamentally review how transnational business lawsuits should be, and to establish an effective framework. The protection and research of only domestic legislation is insufficient. Companies seeking to institute transnational civil procedures face considerable difficulties due to differences among countries in historical background of legal procedure, judicial system, lawyer system and legal thinking. In the field of civil procedure, no fundamental solution has yet been proposed, although some attempts have been made, for example by concluding separate treaties. To realize harmonization of transnational civil procedure it is essential that we not only clarify common elements of procedure, but also pay serious attention to the characteristic property of each country's litigation system and legal culture. However, it is difficult to obtain information on legal systems of foreign countries, due to the uneven distribution of such information. We have not even established a means of collecting sufficient information. To improve this situation, we must take the next step, which includes identifying the characteristic features and issues of legal and judicial systems of respective countries, sharing such information and promoting comparative legal studies on those issues. Collecting information on foreign legal systems is not an easy task. Particularly as regards judicial proceedings for international business disputes, litigants and courts find it extremely difficult to obtain necessary information on foreign legal matters. Such information is principally obtained from literature and other forms of printed media. However, it is extremely doubtful that the information collected actually meets the particular needs. Given the ever-changing nature of legal information, it is very difficult to obtain useful information on actual legal issues in foreign countries. To resolve this problem and to formulate a nomology that meets the demands of the international business community, it would be useful to create a network of legal scholars in countries around the world and establish a forum that regularly discusses various legal issues. This requires a new research system and method.

Objective to be achieved with grant-in-aid

The main objective of this research project is to establish an international framework and a methodology for comparative legal studies, so as to help alleviate the problems commonly found in the international legal community and to enable parties in transnational lawsuits, and legal professionals, to exchange and share legal information in the most accurate and appropriate manner in future years.

Research characteristics

This research focusses on the establishment of a new framework for realizing effective transnational business litigation.
(1) To prevent expansion of the scope of research subjects, the focus was narrowed down to court procedure and related issues for business disputes between Japan and the U.S., between Japan and European countries, and between the U.S. and European countries for comparative analysis.
(2) Particularly in Europe, a region undergoing rapid change, including EU enlargement, litigants and legal professionals face many complex issues arising from differences in legal culture among the countries. We therefore considered it absolutely necessary to establish a research center in Europe so as to obtain local legal information. Fortunately, with the full support of the University of Freiburg in Germany, we were able to establish a research center for this project, the Institute for Business Litigation. We have also hired local researchers; preparations for full-scale research activities are going ahead smoothly.

Expected research results

One main result will be the building of a human network for an effective exchange of necessary legal information on an international scale for more efficient business dispute resolution. The goal is to acquire business legal information related to the U.S.A., the EU and Japan while at the same time establishing a system of joint research. In this way, a more actual and effective method for comparative legal research will be created.

• Research Purpose
• Research Necessity