Dispute Resolution Under The London Court

Introduction

This advice document is prepared to advice the client on matters related to arbitral procedure under the London Court of International Arbitration (LCIA) Rules 2014. The client is a party to an agreement which provides that any disputes arising under the agreement are to be settled by the aforementioned rules. The advice in this brief document is based on the LCIA Rules 2014.

Advise on the procedural matters (referring to relevant articles in the LCIA rules in your advice):

With respect to the first question, that is, response to a Request for Arbitration filed by the other party at the LCIA, such response must be made by the client within 28 days of the Commencement Date, which is the date of receipt of the Request for Arbitration by the Registrar. The response by the client must be in written form and shall include the name and contact details of the client, the confirmation or denial of the claim made out in the Request for Arbitration by the other party, a statement summarising the nature and monetary value of the conflict, and any other counter claim by the client, and responses to procedural claims.

The ICC is unique in the sense that it uses planning conference resulting in Terms of Reference and a Timetable. Although a similar process is not used in the LCIA Rules, the latter does provide for the conduct of proceedings in Article 14 under which the parties may decide upon the conduct of arbitration.

Parties may file further written statements or submissions after the initial Request for Arbitration and Response. This can be done as per the provisions of Article 4. The LCIA Rules contemplate a “written stage” where the detailed arguments and presentation by the parties are made.

With respect to documents-only hearing, the parties cannot be compelled by the tribunal to have a documents-only hearing with no opportunity for an oral hearing. The parties must agree on a documents-only hearing in order for this process to apply. As per Article 19.1 of the LCIA Rules, parties have the right to a hearing before the Arbitral Tribunal unless they have agreed in writing upon a documents-only arbitration.

The LCIA Rules allow cross-examination under Article 20. 20.5 provides that parties or their legal representatives can interview any potential witness who may present his testimony in written form to the Arbitral Tribunal or be produced as an oral witness at any hearing.

If the client requires an interim order with respect to the subject matter of the dispute, prior to the commencement of the arbitration hearing proper, the opportunity to obtain such an order from the tribunal is provided by Article 25.1 of the LCIA Rules. As per this, the party may approach the Arbitral Tribunal for the making of such an order. As per Article 25.3 of the LCIA Rules, the client may also approach the national court for such interim or conservatory measures before the formation of the Arbitral Tribunal. If an order is required urgently before the tribunal is constituted, Article 9B allows for appointment of an emergency arbitrator on an application by any party to the LCIA Court.

As per Article 10 of the LCIA Rules, specifically, 10.6, the LCIA Court decision is to be in writing as well as with reasons. As per Article 26, specifically, 26.2, the awards of the arbitral tribunal are to be reasoned awards. The only exception to this is where the parties agree in writing that the award will not record the reasons for the same.

The of the award is not scrutinised by the LCIA before it is handed down, as occurs under the ICC rules. The LCIA may ensure the quality of the award through its administrative procedures and appointment process.

As per Article 27, opportunities for correction of errors in the award is provided. 27.1 provides that a party may approach the Registrar with a written notice within 28 days of the receipt of award to request the Arbitral Tribunal to correct errors in computation, clerical or typographical error, or any ambiguity or mistake of a similar nature. Upon receiving this request, the Arbitral Tribunal may make the correction within 28 days. 27.2 provides that the Arbitral Tribunal may also correct any such error on its own initiative within 28 days of the date of the award, and after consulting the parties.

If the client is successful in the arbitration, it is not necessary that the costs be borne by the losing party. The Schedule of Costs will be used by the LCIA court to determine the costs that are to be levied for the arbitration as per Article 28. 28.1 provides that the parties are jointly and severally liable to the LCIA and the Arbitral Tribunal arbitration costs. Under 28.4, the Arbitral Tribunal generally makes its decisions on both arbitration and legal Costs on the basis that costs should reflect the parties' relative success or failure, except where the application of this principle seems inappropriate.

The arbitral proceedings are conducted confidentially. Article 30 of the LCIA Rules provides that the parties undertake to keep the information of the awards confidential. This principle also extends to the documents and materials with relation to the arbitration. The confidentiality principle applies to the deliberations of the Arbitral Tribunal. Furthermore, the LCIA does not publish the award or any part of it unless the parties and Arbitral Tribunal give a written consent to do so.

The UNCITRAL Model Law provides the grounds for setting aside of an arbitral award in Article 34 (2); however, the grounds do not include the appointment of arbitrators, although it does include the composition of the Arbitral Tribunal.

Conclusion

To conclude, there specific provisions in the LCIA Rules that ensure the fairness of the procedure as between both parties. These provisions relate to the procedure of the arbitration and some of these provisions have been explained.

Looking for further insights on Differentiating Fraud by False Representation and Breach of Contract? Click here.

Bibliography

• Bond S and Smutny AC, ‘How to Commence an International Arbitration’ in Richard Chernick, Daniel M. Kolkey and Barbara Reeves Neal (eds.), Practitioner's Handbook on International Arbitration and Mediation (Juris Publishing 2012).
• Rivkin D, ‘Procedural Issues to Consider’ in Richard Chernick, Daniel M. Kolkey and Barbara Reeves Neal (eds.), Practitioner's Handbook on International Arbitration and Mediation (Juris Publishing 2012).