London Court of International Arbitration (“LCIA”)
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
Overview: advantages and disadvantages
| ADVANTAGES | DISADVANTAGES |
| Privacy and confidentiality: The default position is that LCIA arbitration proceedings are private and, subject to certain specified restrictions, confidential. | Costs: LCIA fees are higher than some other institutions', although they are usually lower than the ICC's fees. |
| Ability to choose the arbitrator(s): The parties may choose arbitrators who have expertise in the subject matter of the relevant dispute and/or who are from neutral jurisdictions. | Limited scrutiny of awards: The LCIA conducts limited scrutiny of awards compared with other institutions including the ICC, but that can contribute to increased speed and reduced fees. |
| Enforceability of awards: LCIA awards are enforceable under the New York Convention, and are often easier to enforce than the judgments of national courts. | Limited appeal options: LCIA arbitral awards are final and binding, with very limited grounds for appeal (although some parties might consider this to be an advantage rather than a disadvantage). |
| Efficiency and speed: LCIA is known for prompt tribunal appointments, streamlined procedures, efficiency and speed. | |
| Neutral forum: London is a respected venue for international disputes and is supported by a legal system (including a robust Arbitration Act) that is "pro-arbitration". |
Overview: Process
| Procedural element | Details |
| Rules |
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| Commencing Proceedings |
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| Answer to the Request |
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| Terms of Reference |
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| Constitution of the Tribunal |
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| Procedural Order No. 1 |
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| Procedural measures |
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| Witness evidence |
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| Fees & costs |
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Expedited arbitrations
The LCIA does not offer a specific expedited arbitration process. However, the Rules allow the parties and the tribunal to tailor the arbitration procedure to the needs of a particular case, with efficiency in mind.
Article 14.6 allows the Tribunal to make any procedural order with a view to expediting the procedure to be adopted. This includes limiting the testimony of witnesses and dispensing with a hearing.
Constitution of the tribunal
The LCIA maintains an extensive database of arbitrator candidates to assist it in the task of appointing suitable arbitrators for each particular case.
Note: Emergency Arbitrators
Article 9.4 of the Rules provides that, in the case of emergency at any time prior to formation of the tribunal, any party may apply to the LCIA for the immediate appointment of a temporary sole arbitrator to conduct emergency proceedings pending formation of the Tribunal.
Arbitrator conflicts / disclosure of interest
Before appointment or confirmation, each arbitrator candidate shall sign a written declaration stating whether there are any circumstances which are likely to give rise to any justifiable doubts as to his or her independence or impartiality.
Note:
The 2024 IBA Guidelines on Conflicts of Interest in International Arbitration are also applied in practice. A link to those IBA Guidelines can be accessed here.
Consolidation
Article 22.7(i) enables the Tribunal, upon the application of any party and after giving all affected parties a reasonable opportunity to state their views, to consolidate the arbitration with one or more other arbitrations into a single arbitration subject to the Rules.
Pleadings or memorial approach?
A memorial approach front-loads much of the written phase of the proceedings into "memorials" setting out a complete factual and legal case and attaching all of the materials relied on. Conversely, a pleadings style approach involves the written phase proceeding in more of a staged fashion. Either approach is permitted, such choice being at the discretion of the parties.
Article 15.2 of the Rules provides that within 28 days of receiving written notification of the Tribunal's formulation, the Claimant shall deliver either:
(1) A written election to have the Claimant's Request treated as its Statement of Case complying with Article 15.2; OR
(2) A written Statement of Case setting out the relevant facts and legal submissions as well as the relief claimed.
Each statement relied upon should be accompanied by all documents relied on by the party delivering that statement.
Summary judgment
Article 22.1(viii) enables the Tribunal to determine that any claim is outside its jurisdiction, inadmissible or manifestly without merit.
The Tribunal's powers may be exercised either upon the application of any party or upon its own initiative.
However, those powers may only be exercised after giving the parties a reasonable opportunity to state their views.
Security for costs
Article 25.2 enables the Tribunal, upon the application of any party and after giving all other parties a reasonable opportunity to respond to such application, to order any party to provide security for Legal Costs and Arbitration Costs. However, security for costs is often harder to obtain in arbitration compared to a national court context.
Disclosure of documents
Articles 22.1(iv) and (v) enable the Tribunal, upon the application of any party or upon its own initiative (and in either case only after giving the parties a reasonable opportunity to state their views) to order any party to give further disclosure.
Hearings
Article 19.1 provides that any party has a right to a hearing before the Tribunal prior to any ruling by the Tribunal on its jurisdiction and authority, or any award on the merits.
Article 14.6(v) enables the Tribunal to dispense with a hearing, but this is subject to any party's right under Article 19.1 to request a hearing.
Note: Therefore, unless a party requests a hearing, the Tribunal may determine the outcome solely on the documents.
Court's role in scrutiny of arbitral awards
The LCIA will review draft awards to ensure compliance with Article 26, but does not formally scrutinise awards.
Appeals
Article 26.8 provides that every award shall be final and binding on the parties and that the parties waive their right to appeal to any state court or other authority.
The waiver in Article 26.8 applies insofar as it is not prohibited under any applicable law. Therefore, it is subject to limited exceptions that might apply under the national law of the seat of the arbitration.
Further information
- Model clause
- A dispute having arisen between the parties concerning [ ], the parties hereby agree that the dispute shall be referred to and finally resolved by arbitration under the LCIA Rules.
The number of arbitrators shall be [one/three].
The seat, or legal place, of arbitration shall be [City and/or Country].
The language to be used in the arbitral proceedings shall be [ ].
The governing law of the contract [is/shall be] the substantive law of [ ].
If you would like any further information about LCIA arbitrations, please contact Clarissa Coleman at clcoleman@dacbeachcroft.com.
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