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Institutional Arbitration Notes

BPTC Law Notes > Alternative Dispute Resolution Notes

Updates Available  

A more recent version of these Institutional Arbitration 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:

INSITUTIONAL ARBITRATION

? institutional arbitration - arbitral institution acts as authority in default / administrator or supervisor

? ad hoc arbitration - no institution, only parties and arbitrator(s) involved
? UNCITRAL Arbitration Rules 2010 o UN agency - harmonises international commercial law within UN o govern arbitrations not otherwise governed by institution i.e. ad hoc arbitrations can use ? half way between ad hoc and institutional

? history o ad hoc arbitration ancient o 1892 LCIA set up ? institutional started C19th

ADVANTAGES AND DISADVANTAGES INSTITUTIONAL Pros

AD HOC Cons

Pros

Certain?Cons Uncertainkeeps costs down know basic procedure in advance

institution interprets own rules and these interpretations are well known by practitioners - cf precedent but non-binding Flexiblebasic procedural rules must be decided by parties /
decided by tribunal, unless provided by seat uncertainty can affect cost and length

Less flexible some mandatory rules

Most flexible parties free to agree (almost) everything

Overall faster

BUT

Faster in one sense

Overall slower???

institutions will in some circumstances depart from rules

supervision +
basic rules =
reduction in time 18 months - 2 years final award

more procedural hurdles e.g. scrutiny of award before release

fewer procedural hurdlestime spent on deciding issues fixed in institutional

Confidentiality i.e. non-disclosure guaranteed

AA - "reasonable time" ? will have to spend time negotiating / nailing down what is reasonable Confidentiality i.e. nondisclosure NOT guaranteed?

obligation on parties and arbitrators

More enforceable

Less enforceablewell-known institutions more clout in foreign courts Cheaper in some cases?

institution retains power to determine cost of arbitration - costs subject to review and reasonableness?
More expensive in some caseshave to pay institution!

no guarantee of quality of arbitration

More expensive in some cases?

no review of costs no cap

cap on hourly rate

High level of scrutinydepends on seat /
whether parties agree

day to day support of secretariat scrutiny of board on award / rules

Less scrutiny

Admin support?appointment of arbitrators venue exchange of documents

What kind of disputes go to institutional / ad hoc?

? generally (but are exceptions) o small disputes ad hoc as don't have to pay institution o state-state disputes go ad hoc as don't have to submit to private institution
? BUT no set formula Cost

? not clear cut, depends on circumstances which cheaper
? not necessarily cheaper for smaller institutions to go ad hoc
? institutions usually not for profit - assist business community
? arbitrators in ad hoc arbitrations ARE run for profit
? pricing structures for institutional (1) ad valorem system: cost is percentage of amount in dispute (2) hourly rate o depends on circumstances which is cheaper INSTITUTIONS

? big 3: (1) International Chamber of Commerce (ICC) - Paris (2) London Court of International Arbitration (LCIA) (3) American Arbitration Association (AAA)
? also regional ones
? trend towards more institutions
? full list EXAM - know names o AAA American Arbitration Association

wide range, domestic +
international

o

CEDR

Centre for Effective Dispute Resolution

commercial, applies UNCITRAL rules

o o

CIA

Chartered Institute of Arbitrators

for trade associations + prof bodies

CIETAC China International Economic + Trade ssssssss Arbitration Commission

international commercial

o o o

FOSFA

Federation of Oils Seeds + Fats Association

commodity disputes

GAFTA

Grain and Feed Trade Association

commodity disputes

HKIAC

Hong Kong International Arbitration Centre

international commercial

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