Arbitral tribunal
Learn more about how an arbitral tribunal operates and the role it plays in dispute resolution.
Explained – what is an arbitral tribunal and who are the arbitrators?
An arbitral tribunal comprises one or more arbitrators who jointly determine a dispute. It is a private-law body and serves as an alternative to the state courts. A tribunal may be constituted for a single dispute (ad hoc arbitration) or sit within an institutional framework, for example the Stockholm Chamber of Commerce Arbitration Institute (SCC). A contracts lawyer can help draft contract terms to ensure the proper composition of the arbitral tribunal and that the procedure is conducted in a legally robust manner.
When are an arbitral tribunal and its arbitrators appointed?
The question arises when the parties have agreed to resolve their dispute through arbitration. This occurs in both national and international commercial relationships, often in contracts concerning major investments, construction projects or supply agreements. The arbitral tribunal is constituted once a dispute has arisen and is responsible for managing the process, receiving evidence and ultimately issuing the award arbitration. This applies whether the case proceeds as institutional arbitration (e.g. SCC arbitration) or as ad hoc arbitration in international commercial arbitration.
Points to consider about the arbitral tribunal and arbitrators
For the arbitral tribunal to function efficiently, it is essential that the contract terms are clear and the process well structured.
- Specify the number of arbitrators to sit on the tribunal.
- Set out how the arbitrators will be appointed and by whom.
- Ensure the arbitrators possess both legal and sector-specific expertise.
- Determine the language of arbitration, the seat of arbitration (place of arbitration) and the applicable law in arbitration.
- Regulate timelines for submissions, arbitration hearings and the decision.
- Consider confidentiality in arbitration to protect sensitive information.
- Define the allocation of costs between the parties, including arbitration fees.
By planning these aspects in advance, the risk of procedural issues is reduced and the dispute can be resolved more efficiently. Clear drafting of the arbitration clause in the arbitration agreement also supports a predictable arbitration procedure and sound composition of arbitral tribunal.
Arbitral tribunal
Why is the arbitral tribunal – and its arbitrators – important?
The arbitral tribunal is essential to ensure arbitration operates as intended. It provides a structured and legally secure framework for dispute resolution and ensures decisions are taken by individuals with relevant expertise. Unlike court proceedings, an arbitral tribunal often works more quickly and flexibly, which is valuable in commercial arbitration where time is a critical factor.
Another key advantage is confidentiality. Because proceedings are private arbitration proceedings, the tribunal can deal with sensitive commercial matters without them becoming public, which strengthens trust between the parties and protects commercial interests.
Frequently asked questions about the arbitral tribunal
An arbitral tribunal resolves a dispute by assessing the evidence, hearing the parties and ultimately issuing an award arbitration.
An arbitral tribunal is appointed once a dispute has arisen and the parties have agreed on arbitration in an arbitration agreement.
Members may be appointed by the parties, by an arbitral institution or under specific rules in the contract. The selection of arbitrators should reflect the dispute’s legal and industry context.
Advantages include:
- Ability to select arbitrators with specifically required expertise
- Faster process than court (difference between arbitration and court)
- High level of confidentiality in arbitration
- Flexibility of arbitration in designing the process
- International enforceability of decisions
Costs depend on arbitrators’ fees, administrative charges and the scope of the proceedings. They can exceed court costs but may deliver time savings.
The arbitral tribunal is the body that hears the case and issues the decision, whereas the award arbitration is the final determination.
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