Settlement of Islamic Finance Disputes in the United States of America
Dispute Resolution in Islamic Finance, edited by Adnan Trakic, John Benson, and Pervaiz K Ahmed (1st ed. 2019).
36 Pages Posted: 7 Feb 2018 Last revised: 23 Mar 2019
Date Written: January 18, 2018
Islamic finance in the United States is a burgeoning industry. Composed of both retail investors and large international participants, the law applicable to this style of capitalism is beginning to take form. Common law trained, often secular, judges and lawyers are being asked to interpret contracts born out of a system of law that to this day traces several of its primary sources to the same authorities that instruct the private worship of the its participants. As such, courts, administrative bodies, and arbitrators inform themselves of business traditions from Shari’ah-influenced jurisdictions in order to determine the legality of these transactions, as well as to settle disputes arising from such deals. As it turns out, the available case law demonstrates a remarkable ability to engage in such decision-making according to the domestic processes of various United States courts. Other research in the field focuses on particular cases; however, this chapter discusses the process as a whole, citing to specific examples of judicial procedures that are relevant to the discussion of dispute resolution in Islamic finance in the United States.
Keywords: Islamic finance, arbitration, choice of law
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