Institutional Factsheet England and Wales
Below you will find a concise overview of the key procedural features, advantages, disadvantages, and practical considerations involved in arbitrations administered by the London Court of International Arbitration (“LCIA”).
Overview
| ADVANTAGES | DISADVANTAGES |
| Efficiency and speed. LCIA is known for prompt tribunal appointments and streamlined procedures. | Costs. LCIA fees may be higher than some regional institutions, especially for smaller claims. |
| Speed. Awards are delivered within 3 months of the last submission. | Less tailored for specific industries. May not suit niche sectors like construction or maritime as well as specialized forums. |
| Neutral forum. London offers a respected and impartial venue for international disputes. | Limited appeal options. Awards are final, with very few grounds for challenge. |
| Confidentiality. Proceedings and awards are private under LCIA rules. | Limited transparency. Confidentiality may reduce public accountability. |
Fees
A registration fee must be paid by the Claimant at the outset.
Arbitration fees are based on hourly rates but Advanced Payments are requested. Parties generally have little or no input on the timing of requests for payment.
Fees are calculated based on hourly rates of registrars and arbitrators
Arbitrators hourly rate is within the range £250 – £650 unless there are exceptional circumstances.
Rules state that the Tribunal shall decide how costs are borne under Article 28.
Ordinarily, invoices are split 50/50 between the parties initially. Parties can contact the Secretariat to consider other options.
Note: Refusal to pay
Pursuant to the LCIA Rules, if a party fails to pay the Advance Payment for Costs as directed, the LCIA can direct the other party to make a further Advance Payment for Costs in an equivalent amount to allow the arbitration to proceed (Article 24.6). In accordance with Article 24.7 of the LCIA Rules 2020, the party making the payment may request the Tribunal to make an order or award to recover the amount of the payment as a debt immediately due and payable by the defaulting party, together with interest.
Initiating Proceedings
LCIA offers a process for the expedited appointment of a tribunal.
The LCIA Guidance reiterates that the LCIA does not offer a bespoke expedited arbitration procedure (paragraph 237), but that the LCIA Rules permit the parties and the Tribunal to tailor the procedure with efficiency in mind.
Rule 14.6 notes that the Tribunal’s general power includes the power to make a procedural order for an expedited procedure with examples of how that may be done e.g. limiting content and testimonies.
NOTE: Article 14
Under Article 14, the Tribunal has a general discretion s to make orders which expedite the arbitration process. That includes the power to decide the stage at which any issue or issues shall be determined and in what order (Article 14.6 (iv)).
Constitution of the Tribunal
Note: Emergency Arbirtators
Under Article 9B, in case of an emergency at any time prior to the formation or expedited formation of the Tribunal, a party may apply to the LCIA Court for the immediate appointment of a temporary sole arbitrator.
The application should be made to the Registrar in writing by electronic means, together with a copy of the Request (if made by the Claimant) or the Response (if made by the Respondent) and notified to all other parties (Article 9.5). The application must set out the grounds for requiring as an emergency the appointment of an Emergency Arbitrator and reasons for emergency relief. A Special Fee must be paid beforehand, and the application made with proof of payment.
The Emergency Arbitrator shall decide the claim for emergency relief as soon as possible, but no later than 14 days following the Emergency Arbitrator’s appointment (Article 9.8).
LCIA maintains a pool of neutral arbitrators. Where parties are of different nationalities, the sole or third presiding arbitrator cannot be the same nationality as any party.
Arbitrator conflicts / disclosure of interest under LCIA rules
Conflicts are generally dealt with by the LCIA Court prior to Tribunal appointment. The LCIA Court checks with each nomination that they are independent, impartial, and have the requisite availability. The LCIA Court also considers the arbitrators’ experience and expertise in relation to the particular case (Article 5.3). Under the LCIA Guidance, paragraph 116, LCIA notes: "When completing the form, the arbitrator candidate should have particular regard to the existence and nature of any past or present relationships, direct or indirect, with any of the parties and/ or their authorised representatives. In practice, arbitrator candidates may be guided by the non-exhaustive circumstances listed in the Red, Orange, and Green lists of the IBA Guidelines on Conflict of Interest in International Arbitration (IBA Guidelines) together with the IBA’s general guidance therein to inform their decision whether, and if so, what to disclose." There is an ongoing obligation to disclose any circumstance which might give rise to conflicts (LCIA guidance paragraph 118).
Agreeing terms of reference and/or the first procedural order
LCIA uses Procedural Orders in place of Terms of Reference.
Under Rule 14.3 the Tribunal should make contact with the parties within 21 days of appointment.
Parties seek to agree on joint proposals for the conduct of the arbitration.
The Tribunal is to give a reasonable opportunity for the parties to state their views before making a Procedural Order.
Consolidation
Parties can apply for consolidation of arbitrations under Article 22A. The Tribunal has the power to order consolidation with the approval of the LCIA Court once all parties have been given a reasonable opportunity to state their views.
Note: Consolidation
Where the application is to be decided by the LCIA Court, the LCIA Court may decide to defer the application to the Tribunal, once constituted (LCIA Guidance paragraph 250).
Note: Bifurcation
Bifurcation is not generally permitted.
Statement of claim
A Statement of Claim must set out a case in sufficient detail including relevant facts, the relief claimed, and documents replied upon (Article 15). No specific provisions exist as regards the Memorial or Pleadings approaches; parties are at liberty to choose.
Interim Measures
Summary Judgement
The Tribunal has the power to make an early determination under Article 14.6 and Article 22.1.
LCIA Guidance, paragraph 241, notes: "While the LCIA Rules 2020 set out the relevant grounds for Early Determination, the applicable law(s) in the arbitration will govern how these grounds are to be applied in the particular arbitration. The Tribunal will consider the specific facts of the case, including the jurisdiction, admissibility, and merit of the claims and defenses, which can vary significantly depending on the nature of the dispute and the governing law."
Early determination is considered on an application of the parties or by the Tribunal's own initiative (LCIA guidance, paragraph 242). All parties are to be given a reasonable opportunity to state their views before the Tribunal makes a decision.
The Tribunal will set the procedural timetable for dealing with any application for Early Determination. The Tribunal will usually first decide whether the issue is one that is capable of being decided by Early Determination, and if it is, whether the particular claim/defence is “manifestly outside the jurisdiction of the Arbitral Tribunal”, “inadmissible” or “manifestly without merit” (LCIA Guidance, paragraph 244).
Security for costs
The Tribunal has the power to award security for costs under Article 25.
Either party can make an application and the other party will have an opportunity to respond.
The Tribunal can direct for security to be provided in any manner it deems appropriate.
Treatment of confidential information
All LCIA awards are confidential without the written agreement from the parties being required. Parties undertake to keep all awards, materials and documents confidential.
Witness evidence
The Tribunal may decide the time, manner and form in which witness evidence shall be exchanged and presented to the Tribunal. It may allow, refuse or limit the written and oral testimony of witnesses.
Note: Witness Attendance
The Tribunal may request that any party requires its witnesses attend the hearing for oral questioning.
Hearings
The Tribunal will decide in each case whether a hearing is necessary and, if so, consults with the parties to determine format, timing, and location. Hearings may be held in person, virtually (under Article 19.2), or in a hybrid format at the Tribunal's discretion. Interim applications can be made heard at a hearing or dealt with on the papers at the Tribunal's ultimate discretion.
Note: Documents Only Arbitration
Parties may agree in writing that an arbitration should be conducted on a "documents only" basis.
The final award
Pursuant to Article 26, the award must be made in writing and signed by the arbitrators. It must state the reasons for the decision, unless the parties have agreed otherwise, and include the date and seat of the arbitration.
The Tribunal is expected to deliver the final award as soon as reasonably practicable after the last submission or hearing, "and shall endeavour to do so within three months following the last submission" (Article 15.10). The LCIA Court may review the draft award to ensure clarity and consistency with the Rules before it is issued, but does not generally conduct formal or extensive scrutiny.
Once issued, the final award is binding on the parties, which are expected to comply without delay. The Tribunal may also allocate costs and legal fees in the final award on the basis of the parties’ conduct and the outcome of the case. Pursuant to Article 28.4: "The Arbitral Tribunal shall make its decisions on both Arbitration Costs and Legal Costs on the general principle that costs should reflect the parties' relative success and failure in the award or arbitration or under different issues, except where it appears to the Arbitral Tribunal that in the circumstances the application of such a general principle would be inappropriate under the Arbitration Agreement or otherwise.”
Parties may request corrective amendments or additional awards under Article 27.
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