Arbitration Tips: Commencement

Arbitration Tips Commencement

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Arbitration Tips Commencement Until a notice of commencement has been served, the arbitration process will not have commenced. It is not possible to start arbitration without first giving a Notice of Arbitration to all of the parties to the arbitration.

The notice must be valid and must have been properly served.

These are important points because if, there had been no notice, or the notice was invalid or had not been properly served the arbitration will be incompetent. Any award issued will be invalid and unenforceable.

It will be appreciated that the preparation and the service of an Arbitration Notice must be right in all respects because the consequences of getting it wrong can be catastrophic.

John Abbott

Russell Beard

Partner john.abbott@laytons.com +44 (0)20 7842 8000

Partner russell.beard@laytons.com +44 (0)20 7842 8000

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Arbitration Tips | Commencement

The Notice

notice is clear. English courts have a pro-arbitration attitude

The starting point is the arbitration agreement itself. If

requirements of an arbitration agreement and the arbitration

the agreement contains any specific requirements those

notice1. The courts of other jurisdictions may not take such a

requirements must be strictly adhered to both as to content

liberal approach.

and will apply where possible a liberal interpretation to the

and service It is highly advisable therefore to seek professional advice and .If the arbitration agreement incorporates the rules of an

assistance when preparing a notice.

arbitral institution or the UNCITRAL Arbitration Rules, then the Arbitration Notice must follow the requirements of those rules.

Typically, a Notice to Arbitrate may include the following:

Service The arbitration notice must be served in accordance with

• A demand that the dispute is referred to arbitration;

the contractual provisions for service, or in accordance with

• An outline of the dispute and an estimate of the

any applicable arbitration rules or the rules of service of the

amount involved;

country any applicable country.

• The name and address of the parties and if known their representatives; • A reference to the arbitration clause or arbitration agreement if separate;

Great care must be taken in considering how to serve a notice as the agreement and the rules of service of a country may conflict.

• A reference to the contract from which the dispute arises; • The remedy or relief sought.

The importance of correctly serving an arbitration notice is illustrated by: Glencore Agriculture BV (formerly Glencore Grain BV) v Conqueror Holding Ltd2. Conqueror served

A notice will not be valid if;

an arbitration notice and notice of appointment of a sole arbitrator on Glencore by email on an employee of Glencore.

• If it is vague or has not been properly issued;

The High Court in London set aside the arbitration award on

• Refers to a future dispute rather than a present

the basis that the notice of arbitration had not been effectively

dispute;

served.

• Does not comply with the parties’ agreement or the rule of law that governs the arbitration; • Has been issued without complying first with any condition precedent (such as to engage in negotiation or mediation first)

Conclusion A mistake in the preparation of the Arbitration Notice or its service may invalidate the arbitration. It is important that the

There is no particular format to an arbitration notice if one

content of the notice is correct and that it is correctly served.

is not otherwise specified, providing the objective of the See Baltic Universal Alliance Vericherungs AG v Fortuna Co Ltd [1999] 1 Lloyds Rep 497 2.

[2017] EWHC 2893 (Comm) 1.

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Arbitration Tips | Commencement

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Arbitration Tips | Appointing the Tribunal

Arbitration Our team is experienced in resolving disputes through arbitration and committed to providing outcomes-focused, innovative and commercially minded advice to guide our clients through all stages of the arbitration process.

We represent clients from across the globe in arbitrations involving a range of sectors including construction, international trade and commodities, investment treaties and shipping.

Our experience spans arbitrations convened through the main international institutions such as the ICC, LCIA, LMAA, DIFC and SIAC as well as on an ad-hoc basis.

Our Team John Abbott

Russell Beard

Partner john.abbott@laytons.com +44 (0)20 7842 8000

Partner russell.beard@laytons.com +44 (0)20 7842 8000

Robert Clark

Simon Foster

Partner robert.clark@laytons.com +44 (0)20 7842 8000

Partner simon.foster@laytons.com +44 (0)1483 407 000

Richard Harrison

Paddy Kelly

Partner richard.harrison@laytons.com +44 (0)20 7842 8000

Partner paddy.kelly@laytons.com +44 (0)20 7842 8000

Rebekah Parker

Will Slater

Partner rebekah.parker@laytons.com +44 (0)20 7842 8000

Consultant will.slater@laytons.com +44 (0)20 7842 8000

Geraint Thomas

Ben Thorogood

Partner geraint.thomas@laytons.com +44 (0)20 7842 8000

Solicitor ben.thorogood@laytons.com +44 (0)20 7842 8000

Daniel Walter Solicitor daniel.walter@laytons.com +44 (0)20 7842 8000

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This information is offered on the basis that it is a general guide only and not a substitute for legal advice.

We cannot accept any responsibility for any liabilities of any kind incurred in reliance on this information.

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