Organizing an arbitration process can be a complicated process. Commonly, parties to a contract with an arbitration claim will involve an institution to provide important organizational assistance and resources in the conduct and supervision of the arbitration. International Arbitration Rules: A Comparative Guide compares the Rules of the different arbitration associations in a tabular format that is easy to digest and practical to use, with introductory summaries for each stage of the arbitration process.
The Arbitration Process
Arbitration is often categorized as a kind of Alternative Dispute Resolution Process, Which is an alternative to the resolution of Disputes in the courts. ADR procedures such as mediation, mini-trials, neutral evaluation and fact-finding and the like are intended to facilitate negotiations between disputing parties. They are designed to settle disputes by bringing the parties into agreement, normally through the intermediation of a neutral.
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THE FRAMEWORK
International arbitration takes place within a six-part legal Framework.
- The Arbitration Agreement
Relevant laws, the agreement to arbitrate must be in writing. Recognizing that the agreement of the parties to arbitrate is an Important element, and the first element, of any arbitration, whether local or International, we can state a first rule of arbitration.
Rule 1 : All arbitration is consensual. The rule is so obvious that it doesn't need stating. Not so obvious, however -- but of fundamental importance to parties and Their counsel who contemplate the design of dispute resolution Procedures -- are two corollaries to the rule:
- Corollary to Rule 1: The parties and their counsel can, and very definitely should, design Arbitration procedures those are expeditious and appropriate to the circumstances.
- Second Corollary to Rule 1 : If the parties do not agree to arbitration, they have elected to leave The resolution of any disputes that arise to litigation.
- Statutes
National statutes and, in countries organized on federal lines, Also the statutes of states or other political subdivisions -- are the second Essential element in the legal structure of both national and international Arbitration.
- Courts
National and state courts are the third element in the framework of international arbitration. It is, of course, the courts at the place of Arbitration which interprets the arbitration statutes that governs there. Courts exhibit various degrees of willingness to compel arbitration, to assist the arbitration process, and to enforce or review arbitral awards.
- International Conventions
Over-arching these national laws, and creating a single system of International arbitration, are international treaties which provide for the enforcement of foreign arbitral awards. The principal international convention is the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), to which 135 nations have subscribed. This convention requires the courts of signatory countries (1) to Enforce arbitration agreements made in other countries, and (2) to recognize and enforce arbitral awards rendered in the territories of other countries.
- Arbitration Rules
The fifth part of the framework of international arbitration consists of the Detailed rules that govern arbitration procedures. The rules used most commonly in international arbitration include those of the International Chamber of Commerce, the American Arbitration Association the United Nations Commission on International Trade Law the London Court of International Arbitration the CPR Institute for Dispute Resolution, and the Stockholm Chamber of Commerce.
- Arbitral Institutions
Arbitral institutions are the sixth and final part of the framework. The parties may elect to have their arbitrations administered by the ICC, the AAA, the LCIA, the Stockholm Chamber or any of at least a dozen other local or national institutions. These institutions help with the logistics of arbitration. They also perform the important functions of appointing arbitrators if the parties have not otherwise provided for their appointment, and of hearing challenges to arbitrators based on alleged bias or interest.
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