Scribd
Upload
30 views2 pages

Characteristics

This document discusses dispute resolution issues that may arise from cloud computing. It notes that cloud computing disputes are likely to involve issues of professional negligence regarding performance and security of data, intellectual property challenges, and regulatory non-compliance. These disputes could involve multiple parties across multiple jurisdictions. The document recommends that mediation may be useful as part of a multi-tiered dispute resolution process. Arbitration provides expertise and worldwide enforceability of awards but has limitations in joining additional parties. Using a private judge or a project neutral/dispute review board adapted from the construction industry can provide expertise, speedy resolution, and mechanisms for compelling evidence but may not address disputes across jurisdictions or with non-contracting parties.

Uploaded by

Deb Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
30 views2 pages

Characteristics

This document discusses dispute resolution issues that may arise from cloud computing. It notes that cloud computing disputes are likely to involve issues of professional negligence regarding performance and security of data, intellectual property challenges, and regulatory non-compliance. These disputes could involve multiple parties across multiple jurisdictions. The document recommends that mediation may be useful as part of a multi-tiered dispute resolution process. Arbitration provides expertise and worldwide enforceability of awards but has limitations in joining additional parties. Using a private judge or a project neutral/dispute review board adapted from the construction industry can provide expertise, speedy resolution, and mechanisms for compelling evidence but may not address disputes across jurisdictions or with non-contracting parties.

Uploaded by

Deb Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Martin Quinn

JAMS San Francisco


August 2010

Dispute Resolution Issues for Cloud Computing

Two questions: What characteristics are cloud computing legal disputes likely to have?
What forms of dispute resolution are best adapted to deal with these disputes?

Characteristics:

Subject matter of disputes:


Professional negligence: performance (reliability/accessibility);
security/confidentiality; loss/corruption of data
Intellectual property: challenges to IP rights of the cloud provider may
impact or drag in the users; and vice versa.
Regulatory: misuse of data contrary to restrictions of U.S. law [e.g.,
HIPAA, FISMA, SOX, PCI DSS, etc.] or foreign law [e.g. strict EU privacy limits]
Litigation issues: control of, and accessibility to, data in the cloud

Multiple parties: provider-user disputes are just the beginning; customer/client of


user may complain that provider misused/lost its data; sub-contractor of provider may be
guilty of misuse/negligence/loss of data. Provider likely to be dragged into disputes as
the “deep pocket”.

Multiple jurisdictions: since cloud may be located in, or allow data to pass
through, numerous domestic and foreign jurisdictions – need to provide for applicable
law, venue. Need a process that can obtain evidence and compliance in many
jurisdictions.

Esoteric technology: courts are ill-equipped; need ability to resort to dispute


professionals who understand the problem, technology

Need for speedy resolution: Need for an agile, flexible, speedy process.

Dispute resolution options:

Mediation: useful as part of a multi-tiered process.

Arbitration: Provides expertise. Awards are easily enforceable worldwide. More


difficult to bring in other parties that did not agree to the arbitration clause. Poor
mechanisms for compelling evidence from other jurisdictions. At its best, with an
experienced, skilled arbitrator, it provides speedy, cost-effective relief. But it all depends
on the arbitrator.

-1- 1
Private judge: Possible in many jurisdictions to provide that all disputes go to a
named neutral, who will act as a temporary judge with all the powers of a normal sitting
judge. Decisions are appealable and enforceable. Provides same advantages as
arbitration (again, it depends on getting a skilled neutral), but also allows use of court
processes to compel evidence from other jurisdictions and to add non-contracting parties.

Project neutral or dispute review board: Adapt experience of construction


industry to this field. Neutral or board is appointed to deal with all conflicts that arise
during a contractual relationship – tiered system of dispute resolution techniques.
Primary advantages are expertise, speed, resolution of disputes at early stage. Excellent
choice for provider-user disputes. Not well adapted to dealing with non-contracting
parties, multiple jurisdictions.

-2- 2

You might also like