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Arbitration Process Notes

BPTC Law Notes > Alternative Dispute Resolution Notes

Updates Available  

A more recent version of these Arbitration Process notes – written by City Law School students – is available here.

The following is a more accessble plain text extract of the PDF sample above, taken from our Alternative Dispute Resolution Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Arbitration Process Claimant raises issues Defendant disputes fault???

Statement of case must: set out what happened; set out each side's case; define the issues; and set out relief sought.??

Contents of Notice of Arbitration The address for service of the applicant A brief statement of the nature and circumstance of the dispute A brief statement of the relief The claimant's proposal on the composition of the tribunal If applicable, the claimant's nomination of one of the arbitrators of a multi-member tribunal Name and address details of the respondent.

Notice of Arbitration Arbitration Act 1996: must be in writing request of the other party to: (1) appoint/agree to the appointment of the arbitrator where the arbitrator is named in the agreement; (2) appoint/agree to appoint an arbitrator for the dispute; or (3) make an appointment in respect to the dispute where the arbitrator is chosen by someone other than the parties. This commences the arbitration, and the date of this is important because:

1. The arbitration agreement might specify a time-limit for commencing arbitration;

2. The normal limitation periods of claims apply to arbitration proceedings. A contractual time limit can be extended by application to the tribunal or High Court, but limitation periods can only be disapplied under s33 of the Act.

Court Extending Time An extension may be granted by the court only where (Arbitration Act 1996, s. 12(3)): (a) The circumstances are such as were outside the reasonable contemplation of the parties when they agreed the provision in question, and it would be just to extend the time; or (b) The conduct of one party makes it unjust to hold the other party to the strict terms of the provision in question. This section is applied with reference to s1 Arbitration Act 1996 (fair resolution of disputes, party autonomy and little court intervention.

Appointment of Arbitrators Parties can choose the number of arbitrators.
? If they have not done so, s15(3) Arbitration Act 1996 provides for a sole arbitrator.
? If parties have agreed an even number of arbitrators, it is understand to require an additional arbitrator to be appointed as chairman. The chairman's view prevails where the decision is evenly split. An umpire breaks deadlock by deciding issues when the arbitrators cannot agree. This is highly irregular. Unless a procedure is agreed by the parties, s16 sets out:
? Sole arbitrator is jointly appointed;
? In the case of 3 arbitrators, each party appoints one and their appointments select the final arbitrator. Arbitrators must be impartial - there cannot be actual bias or any real possibility of bias (objective test). Liability of Arbitrators and Institutions The arbitrators and the arbitral institutions are immune to liability for anything said or done in discharge of their duties unless it is done in bad faith. Liability for fees: this rests jointly and severally with both parties, and arbitrators can withhold their decision until paid.

Removal of an arbitrator This can be done if: (i) Terms of agreement allow for it; (ii) All parties agree in writing; or (iii) Tribunal vested with such power agrees to remove him/her. If all avenues employed and led to nothing: (iv) Party can apply to court to remove the arbitrator. A removal may be a breach of contract and may lead to a claim in damages. An arbitrator may cease to act if they: (i) Resign (agreement may provide circumstances and consequences); (ii) Die.

If any of these events occur, the parties can agree to fill the vacancy, how much the previous proceedings should stand, and the effect of his/her leaving has on their appointment.

Buy the full version of these notes or essay plans and more in our Alternative Dispute Resolution Notes.