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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Uganda Commercial Court extends time for setting-aside applications and clarifies arbitrator’s lien

Arbitration analysis: In a bold ruling, the Uganda Commercial Court has broken with binding Supreme Court precedent and its own prior decisions, holding that it has authority to extend the one-month statutory time limit for applying to set aside an arbitral award where there is prima facie a serious ground for setting aside and the interest of justice requires that time be extended. Though open to doubt, the ruling is likely to influence future legislative reform. The court also clarified the effect of an arbitrator’s lien over an award (exercised due to non-payment of their fees) on the timeline for setting aside, holding that the one-month time limit for the setting-aside application begins to run on the date on which the arbitrator actually avails the award to the parties (including the party in default of payment) or makes it available for their collection (typically from the institution administering the arbitration) and not on the date on which the arbitrator informs the parties that the award is ready but has been withheld under lien or even on a prior date on which the award may have been dated and signed but not availed. This is so regardless of who is to blame for the exercise of the lien or who has paid more than their fair share of the arbitrator’s fees to access the withheld award. This holding might incentivise rather than discourage deliberate non-payment of arbitrators’ fees with the intention of delaying issuance of final awards. Written by Hussein D. Gulam, MCIArb, arbitration and litigation attorney at MMAKS Advocates.

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