Understanding institutional and ad hoc arbitration

What is institutional arbitration?

This Practice Note introduces what it means for a dispute to be referred to arbitration under a set of institutional rules. It gives details of the main institutional arbitration bodies and links to bespoke content about them. The note also discusses when institutional arbitration would be appropriate and sets out the advantages and disadvantages of arbitrating under institutional rules.

See Practice Note: Institutional arbitration—an introduction to the key features of institutional arbitration

What is ad hoc arbitration?

This Practice Note gives information about arbitrations that are conducted without the supervision of an arbitral institution, known as ad hoc arbitration. Arbitration under national legislation such as the Arbitration Act 1996 (AA 1996), or under the UNCITRAL Rules which are not administered by an institution would fall into this category. The note sets out the advantages and disadvantages of choosing ad hoc arbitration and gives a precedent ad hoc arbitration clause that may be used as an arbitration agreement.

See Practice Note: Ad hoc arbitration—an introduction to the key features of ad hoc arbitration

Comparing institutional and ad hoc

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The English Court’s powers to issue injunctive reliefs aimed at preserving arbitral confidentiality (A Corporation v Firm B and another)

Arbitration analysis: This case arises from the claimant’s application for interim injunctive reliefs (the ‘Application’) seeking, among others, to restrain the first defendant (‘Firm B’), including any of its branches from (i) acting for Corporation C in an ongoing arbitration against Corporation D (the ‘Second Arbitration’); and (ii) providing any confidential information from a previous arbitration between the Claimant and Corporation B (the ‘First Arbitration’), to Corporation C. In determining the Application, the Court considered the principles governing the grant of interim reliefs as established in American Cyanamid v Ethicon Ltd. The court also considered the boundaries of arbitral confidentiality by considering what documents and information the obligation of arbitral confidentiality covers, and the relevant exceptions to this obligation. The court concluded that the claimant was not entitled to the requested reliefs. After examining the claimant's allegations of breaches of arbitral confidentiality, the court found no breach, except for some limited settlement information from the First Arbitration. The court was also not persuaded that there was a real risk of confidential information being transferred between Firm B’s London and Asia offices. Consequently, the court decided that granting the injunction would significantly prejudice Firm B and Corporation C, while not granting it would cause no prejudice to the claimant and only minimal prejudice to Corporation D. Written by Dr. Ademola Bamgbose, solicitor advocate and senior associate at Hogan Lovells, London and IfeOluwa Alabi, associate at Hogan Lovells, London.

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