Settlement in arbitration

The following Arbitration practice note provides comprehensive and up to date legal information covering:

  • Settlement in arbitration
  • Settlement negotiations in arbitration
  • Settlement offers in arbitration
  • The arbitral tribunal's role in settlement
  • AA 1996 and institutional arbitration rules in respect of settlement
  • The AA 1996
  • ICC Arbitration Rules
  • LCIA Arbitration Rules
  • HKIAC Administered Arbitration Rules
  • SIAC Arbitration Rules
  • More...

Settlement in arbitration

Settlement negotiations in arbitration

It will, generally speaking, be in the best interests of a party to explore all genuine opportunities to settle given the time, cost and other implications of being involved in a dispute of any kind. If, during the course of an arbitration, the parties wish to enter into settlement negotiations or an alternative dispute resolution (ADR) process such as mediation, the parties should consider informing the arbitral tribunal of this desire and, where appropriate, ask the arbitral tribunal not to do any work during the period of the negotiations or other ADR process so as to save fees and expenses in the event that the matter is settled. The tribunal should be informed as soon as the dispute is resolved or the negotiations/mediation have/has failed. Typically, the parties’ agreement and logistics surrounding any stay for negotiations/mediation will be recorded in a letter or procedural order from the tribunal.

For guidance on conducting settlement negotiations generally, see Practice Note: Settling disputes—negotiation strategy. See also: Settlement and settling disputes—overview for comprehensive guidance on settlement in the context of English civil litigation.

Settlement offers in arbitration

There is no particular mechanism for settlement offers to be made in arbitration. It is common practice for parties to make settlement offers in writing, setting a time limit within which the offer to settle is open for acceptance.

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