Many business owners imagine arbitration as a single hearing at which the dispute is presented and the award issued. In reality, it is an organised process that passes through several stages, each with its own requirements and opportunities. Understanding this process early helps you prepare well and avoid mistakes that are hard to correct later.
Stage one: before the arbitration begins
Before sending any request, review the arbitration agreement carefully: does it require negotiation or mediation first? Does it specify a particular centre and rules? Then gather the core documents: the contract and its annexes, correspondence, invoices, minutes of meetings, and evidence of the breach and the loss.
- Keep all correspondence relating to the dispute, including emails and text messages.
- Avoid any written statement that could be read as admitting what the other party claims.
- Estimate the value of the claim accurately, as it affects fees and strategy.
Stage two: commencing the arbitration and constituting the tribunal
Arbitration begins by sending a request for arbitration to the other party, or to the centre in institutional arbitration, setting out the parties' details, a summary of the dispute, the relief sought and the arbitration agreement. The arbitral tribunal is then constituted as the parties agreed; if they cannot agree, the centre or the competent court intervenes as the case may be. Each arbitrator accepts the appointment in writing and discloses any circumstance that may raise doubts about their impartiality.
Stage three: preliminary procedure
The tribunal usually holds an initial procedural meeting with the parties to settle the language, the timetable, the number and timing of submissions, and how documents are to be produced and witnesses and experts heard. Objections to the tribunal's jurisdiction or the validity of the arbitration agreement may be raised at this stage, and as a rule the tribunal rules on its own jurisdiction.
Meeting procedural deadlines is not a detail. A submission or document filed late may be excluded by the tribunal, and an objection not raised in time may be waived.
Stage four: submissions, evidence and hearings
The claimant files its statement of claim supported by documents, and the respondent replies with its statement of defence and may bring counterclaims. Hearings are then held for oral argument and, where needed, for hearing witnesses and experts. This stage is the heart of the case, and its quality depends on:
- A clear and coherent account of the facts supported by documents.
- Organising and indexing the documents so the tribunal can refer to them easily.
- Preparing witnesses well without coaching them, since their credibility is part of the strength of the case.
- Engaging an independent technical expert on accounting or engineering matters where needed.
Stage five: deliberation and the award
Once the pleadings are complete, the tribunal retires to deliberate and then issues its award in writing, with reasons and signed by the arbitrators, within the period the parties agreed or, failing agreement, within the period set by law. The award is delivered to the parties, and neither it nor any part of it may be published without their consent. A new stage then begins, concerning enforcement of the award or a challenge to it by an action for annulment.
Good preparation in the early stages is what makes the difference to the outcome. Our team supports clients at every stage, from assessing the dispute and preparing the file to representation before the tribunal and follow-up after the award.