LS&HC Horizons 2022 - Flipbook - Page 46
Hogan Lovells | 2022 Life Sciences and Health Care Horizons
Patents, Litigation, and Beyond
Arbitrating life sciences supply chain disputes
Supply chain disputes in life sciences cover a wide range of issues such as reasonable
endeavours to commercialize, disputes over quality and force majeure. Disputes over
termination rights and limitations and exclusions of liability are also increasingly
common. The complex regulatory environment often adds additional elements to
these disputes, requiring evidence on both technical and regulatory matters.
However, there can also be a need, particularly from a buyer’s perspective,
to keep a supply contract alive despite the dispute in order to allow that party to
continue to perform its own obligations to third parties. One approach to addressing
such disputes is to seek rapid resolution through arbitration.
Arbitration can provide quicker resolution of disputes than many court systems.
Arbitrations under many institutional rules, such as those of the International
Chamber of Commerce (ICC), also provide for ‘expedited arbitration’ procedures,
with a reduced fee scale and a condensed timetable for the streamlined resolution
of disputes. The truncated timetable still provides a robust process and produces
an enforceable award. In cases of particular urgency this can be further supported
by claims for interim relief either from the Tribunal or from the courts. These
procedures can be particularly effective for lower-value supply chain disputes where
quick resolution is of utmost importance.
As regulatory agencies continue to increase scrutiny of manufacturing and supply
chain issues in the wake of Covid-19, life sciences companies should pay keen attention
to managing these potential risks. Arbitration provides a strong tool for resolution of
lower-value but nevertheless potentially highly disruptive contractual disputes.
Ben Hornan
Partner, London
George Harnett
Senior Associate, London
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