Multi-contract and multi-party arbitration

Multi-party and multi-contract arbitration

This Practice Note discusses how multiple party (multi-party) disputes and disputes concerning multiple contracts (multi-contract) are dealt with in arbitration proceedings (including international arbitration). Such arbitrations are sometimes referred to as complex arbitrations. The Practice Note includes tips on drafting arbitration agreements in these circumstances and also on conducting multi-party arbitration. The Practice Note discusses how an arbitral tribunal (arbitrator(s)) may be appointed in multi-party arbitration, including how AA 1996 (in England, Wales and Northern Ireland; under English law) and major institutional and ad-hoc arbitration rules (those of the International Chamber of Commerce (ICC), London Court of International Arbitration (LCIA), United Nations Commission on International Trade Law (UNCITRAL) and Hong Kong International Arbitration Centre (HKIAC)) deal with this issue. It also covers the issue of joinder of third parties and the consolidation of arbitration proceedings, and AA 1996 and institutional approaches to these mechanisms. For more detail, see Practice Note: Multi-party and multi-contract arbitration—an introduction.

A quick guide to the arbitration process

This Practice Note provides a quick guide to the main stages

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Drawing the line—court review of arbitral institutions’ administrative decisions in Brazil (Vale v B3 & others)

Arbitration analysis: Reversing a first-instance judgment that had dismissed the claim for lack of jurisdiction and legal standing, the São Paulo Court of Appeals held that Brazilian courts may review administrative decisions rendered by arbitral institutions prior to the constitution of the arbitral tribunal. The dispute concerned a decision by the President of the Market Arbitration Chamber (CAM) applying Article 3.6 of its Rules to appoint all three arbitrators and to disregard respondent Vale S.A.’s prior appointment of a co-arbitrator. The court held that the provision presupposes both a plurality of parties and an actual ‘absence of consensus’, which was not present in the case at hand, as the multiparty claimants acted jointly and with convergent interests up to that stage of the proceedings. It further held that the statutory right of each party to appoint a co-arbitrator under the Brazilian Arbitration Act cannot be displaced by institutional discretion in such circumstances. The decision reinforces the judicial control over institutional acts that affect fundamental procedural rights in arbitration and clarifies the São Paulo Court of Appeal’s stance on the distinction between jurisdictional and administrative acts in arbitration. Written by Renato Stephan Grion, partner at Pinheiro Neto Advogados, and Thiago Del Pozzo Zanelato, senior associate at Pinheiro Neto Advogados.

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