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When you run a business, there is the possibility that you will get into a commercial dispute. If so, you need to decide how to attempt to resolve it. Arbitration is one method you may choose, particularly if you have an arbitration agreement. The London Court of International Arbitration (LCIA) is a global institution where you can carry out arbitration for any legal jurisdiction. Their arbitration rules detail different points about the arbitration process and the proceedings, such as about written communication by electronic means. This article will explain what an emergency arbitrator is according to the London Court of International Arbitration (LCIA) Rules.
What is Arbitration?
Arbitration is an alternative dispute resolution (ADR) or private dispute resolution method for resolving disagreements. This includes commercial disputes. It is a non-court resolution method where you and the other parties appoint a single arbitrator or a panel of arbitrators. Parties to the dispute submit it to them to obtain a binding decision.
You can carry out our arbitration on an ad hoc basis when you have a commercial disagreement. Alternatively, you can arbitrate through an arbitral organisation like the London Court of International Arbitration (LCIA). When doing so, you will use the LCIA arbitration rules.
What is an Emergency Arbitrator?
The London Court of International Arbitration (LCIA) Rules consist of 38 Articles detailing the rules for carrying out arbitration with the court. Article 9B is ‘Emergency Arbitrator’ and comprises 13 detailed sections. We will now explore some details of emergency arbitrators for the LCIA arbitration rules.
According to the LCIA rules, an emergency arbitrator is an arbitrator whom the parties to arbitration can apply for an immediate appointment in arbitration proceedings. This will be a single arbitrator and only a temporary arbitrator, as parties can only appoint them while waiting for the Arbitral Tribunal’s formation. Article 9B, however, does not apply if you and the other party to the arbitration agree in writing to ‘opt-out’ of the Article.
Relevant documentation must accompany the application, and it should include, for example:
- the grounds for the need for an emergency arbitrator;
- the claim and reasons for the need for an emergency arbitrator; and
- receipt of the Special Fee under Article 9B.
Emergency Arbitrator Powers
Once an emergency arbitrator is appointed, it is helpful for you to be aware of how they may carry out arbitration proceedings and what they can do. This is in the sections of Article 9B.
An emergency arbitrator, when using the LCIA Arbitration Rules, can carry out the emergency arbitration in any way they choose according to:
- the circumstances;
- where possible, the need to allow each party a consultation opportunity on the emergency claim;
- the claim and why emergency relief is needed, and
- any further submissions made by the parties to the arbitration.
However, the LCIA court can decide on anything not detailed in Article 9B about administering the emergency proceedings.
This guide outlines how to resolve commercial disputes.
It is up to the emergency arbitrator if they wish to hold a hearing or hearings for the emergency arbitration claim. Instead, they can make a decision solely using the documentation available. They usually have up to 14 days to decide on emergency relief, which may be an order or award. They will give this in writing and to the registrar with details of their reasons for this. The Registrar will then pass this to you as a party to the arbitration.
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Key Takeaways
You can try to solve your commercial dispute through arbitration, a form of alternative dispute reaction (ADR). A sole arbitrator or an arbitrator panel will decide on the commercial disagreement. If you use the London Court of Arbitration (LCIA) for this, you will follow the LCIA Arbitration Rules.
Article 9B details about emergency arbitrators. You can apply for an emergency arbitrator in writing detailing specific points the rules request. An emergency arbitrator is a sole arbitrator and only temporary. They can conduct the proceedings as they see fit, bearing in mind specific points, and do not have to conduct a hearing to make a decision. They may complete an order or award in writing with their decision and have up to 14 days to do so following their appointment.
If you need help understanding an emergency arbitrator’s powers under the LCIA Rules in the UK, LegalVision’s experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
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