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:
? 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
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
Faster in one sense
institutions will in some circumstances depart from rules
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
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
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 +
Centre for Effective Dispute Resolution
commercial, applies UNCITRAL rules
Chartered Institute of Arbitrators
for trade associations + prof bodies
CIETAC China International Economic + Trade ssssssss Arbitration Commission
o o o
Federation of Oils Seeds + Fats Association
Grain and Feed Trade Association
Hong Kong International Arbitration Centre
Buy the full version of these notes or essay plans and more in our Alternative Dispute Resolution Notes.