Arbitration today is far different from what it used to be. Traditional arbitration generally involves two parties. As the world has changed, so does arbitration. More parties and more transactions involve in a single dispute. For instance, in construction, there are many contracts involved such as construction contracts, supply contracts, design contracts, engineering contracts, fitting-out contracts, etc. For land or share purchase agreements, sometimes, there are purchase agreements and escrow agreements, or sometimes facilities agreements with financial institutions. Here, there are three different scenarios such as multiple contracts, multiple parties, and a mix of multiple contracts and multiple parties. In this blog, the first scenario is discussed, leaving the other two to future blogs. Should a dispute arise from any contract, each contract is dependent on one another. If each dispute is arbitrated separately, there are potential risks of inconsistent decisions and ineffective use of time and expenses. How to deal with this complex arbitration?

The solution to these potential risks is to solve all disputes in a single arbitration. You may ask that is it? or it sounds so simple. The answer is no, it is not that simple and easy. Dealing with such complex arbitration requires skills and experience because there are legal and administrative factors to consider. Legal factor refers to the application of relevant subject matters of disputes, arbitration agreements, institutional rules, and national laws. The administrative factor refers to managing communication, evidence, time, and relevant logistic arrangement.

Before filing multiple contracts in a single arbitration, a detailed examination of those contracts is required whether it involves the same arbitration agreements, same parties, similar or same facts, dependency of each dispute on one another, and need to arbitrate in a single arbitration. If arbitration agreements are different, not only one arbitration institution may have jurisdiction over different disputes. For multiple parties, it would require their consent to arbitrate. In addition, if the facts of each dispute are different and have no connection or dependency on one another, the institution and competent authority would unlikely to grant consolidation of all these disputes into a single arbitration. In deciding whether these disputes should be filed in a single arbitration, it is not a decision relating to the application of laws but a strategic decision that requires considering on a case-by-case basis whether the benefit it serves outweighs the risk it poses.

Should the result of the examination is affirmative, the next step is to review applicable arbitration rules and national laws whether filing multiple contracts in a single arbitration is permissible. There are procedural features that could be utilized such as notice of arbitration, consolidation, joinder, concurring proceedings, and string arbitration. If applicable rules and laws permit, multiple contracts may be filed in a single notice of arbitration if each arbitration agreement refers to the same arbitration institution. This method does not work if each arbitration agreement refers the disputes to different arbitration institutions. In such a scenario, each dispute may be filed separately, and then a request for consolidation or joinder should be made. If such a request is not granted for any reason, parties may consider utilizing concurrent proceedings meaning that multiple arbitration proceedings are conducted simultaneously. Another procedural option is string arbitration proceedings meaning that multiple arbitration proceedings are conducted in series. Concurring and string proceedings require close coordination between each proceedings.

In conclusion, complex arbitration requires careful consideration of all legal and administrative factors to achieve consistent decisions and procedural efficiency and effectiveness. In doing so, it is advisable to examine arbitration agreements, the subject matter of the dispute, institutional rules, national laws, practical needs, and skillful and experienced arbitration team