Types of Arbitration
There are two different types of arbitration, institutional and ad hoc, the essential features of each are set out below:
Institutional Arbitration or Administered Arbitration
An Administered Arbitration or Institutional Arbitration is one in which an insittution will administer the conduct of arbitration proceedings. The institution does not itself resolve the dispute but administer the resolution of dispute. The institution administer the arbitration proceedings in accordance with its owned Arbitration Procedural Rules as well as leading Third Parties such as ICC, HKIAC, SIAC, LICA etc. and UNCITRAL Arbitration Rules. Such Rules establish the parameters of the procedure, from the submission of the notice of arbitration to the issuance of the award.
Ad hoc arbitrations are arranged solely between the arbitrators and the parties. The parties must envisage and advance the arbitration procedure themselves under the supervision of the tribunal. The parties may choose to adopt a ready-made set of arbitration rules (such as the UNCITRAL Rules of Arbitration) or the proceedings may be conducted in accordance with a set of bespoke rules, drawn up by the parties specifically for that particular case. The process may also involve an ADR provider entity, which simply assists with the selection of neutrals if called upon by the parties’ agreement or if for some reason the parties are unable to select a neutral.
A major advantage of this approach is that such proceedings typically cost less than institutional processes because there is no need to pay an institution a percentage of the claim as a filing fee, or indeed any fees, if the parties can proceed on their own without an institution’s intervention.
Jupitice’s self-administered processes allow parties to conduct an arbitration or mediation without the help of an administering body. However, given the varying nature of complex commercial disputes, there may be some situations in which limited administration may be needed for a given type of case or case load. For these matters, Jupitice staff stands ready to assist parties in proactively addressing disputes and accelerating resolution. In these instances, assisted dispute resolution services – like customized neutral selection services, fund holding, award review, and serving non-respondents – may be provided upon request of the parties. In this approach, parties only pay for the services that they use. By merging the flexibility of a self-administered resolution process with occasional administrative support, the assisted resolution approach offers parties the best of both worlds.