04
Sat, May
23 New Articles

Considerations in the Determination of the Party-Appointed Arbitrators

Considerations in the Determination of the Party-Appointed Arbitrators

Turkiye
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

One of the important advantages of arbitration proceedings is that the parties can appoint co-arbitrators. Thus, the parties can ensure that those whose impartiality, knowledge and fairness they trust will decide on their dispute. This opportunity raises the question of who the party-appointed arbitrators should be and the criteria by which the parties should appoint the party-appointed arbitrators. 

Since the experience and knowledge of the arbitral tribunal will determine the fate of the award, we have presented below some of the criteria to be considered in the appointment of co-arbitrators. Of course, this enumeration is not exhaustive. Different criteria may emerge according to the characteristics of the case.

1- Independency and Impartiality 

The fact that the parties are empowered to appoint the arbitrator does not mean that the arbitrator will act in favour of the party that has appointed him/her, or that he/she will act as a representative of that party. The co-arbitrators and the presiding arbitrator must be independent and impartial. 
 
2- Expertise

It is important, but not sufficient, that the arbitrators selected are knowledgeable and experienced in arbitration proceedings. The arbitrator should have legal and sectoral knowledge and experience about the dispute. For example, appointment of a co-arbitrator who knows the basic technical terms related to the dispute and lex causae may facilitate the resolution of the dispute.

3- Availability in terms of Time

Another issue to be taken into account in the appointment of an co-arbitrator is whether the arbitrator's workload is suitable to allocate the necessary time for the resolution of the dispute. Especially in complex arbitration proceedings involving technical problems, hundreds of pages of pleadings and evidence may be submitted. Arbitrators are expected to allocate the time necessary for the resolution of the dispute in detail.  In this regard, the Istanbul Arbitration Centre requires arbitrators to declare their workload when they are notified of their appointment and to undertake in writing that they will be able to allocate the necessary time for the proceedings. Failure of the arbitrator to allocate the necessary time may result in the arbitration being protracted and may even result in the denial of the right to be heard.  

4- Language of Arbitration

The Party-appointed arbitrator should have sufficient knowledge of the language of arbitration to conduct a proceeding, to participate in hearings, to express himself/herself comfortably in meetings between arbitrators, and to write the arbitral award.

5- Approach to the Dispute

In some disputes, the validity of the arbitration agreement relied upon by the claimant may depend on the legal understanding of the arbitrators and whether they adopt an approach to the interpretation of the arbitration agreement that is arbitral friendly. Of course, it is not possible to know in advance what the arbitrator will decide on the dispute or to discuss it with him/her. Indeed, it is very difficult to conclude that co-arbitrator who expresses an opinion on the dispute before being appointed as an arbitrator is impartial and unbiased.  Therefore, persons who are proposed to be arbitrators cannot discuss the dispute or express their views with the parties or their representatives. However, if the proposed arbitrator has publications on controversial legal issues, these should be examined. 
Under some institutional arbitration rules, arbitral awards are published unless a party objects. This is the case, for example, under the ICSID and ICC Arbitration Rules. The decisions of an arbitrator in similar disputes may give the parties an idea about the arbitrator's approach to the issues.  

6- Previous Experience

Knowing the attitudes of the arbitrators in other arbitral proceedings in which they have acted as an arbitrator or a counsel may be an important criteria in deciding whether or not to appoint that arbitrator. For this reason, it is very useful to work with lawyers who have previously acted as arbitrators or counsel in arbitral proceedings.

By Cemile Demir Gokyayla, Partner, and Arzum Beyza Cimen, Trainee, KP Law

KP Law at a Glance

Based in Istanbul, Turkey, KP Law is an independent full-service law firm providing multidisciplinary solutions to the clients worldwide. With over 55 lawyers and specialists, KP Law makes the best of agile & holistic approach as a strategic partner to your business with well analyzed reality checks, risk monitoring and pragmatic solutions. The firm has a distinguished status with built trust, a consistent high quality and stands out as a preferred vendor of Big4 as well as large size consultancy firms. Thanks to this accumulated knowledge and track record international experience, the team is intensely committed to high quality strategic approach and value-based delivery with commercial awareness and deep understanding of industry dynamics.

KP Law is led by Founding Partner Att. Onur Kucuk, a skilled negotiator, trusted by top executives, multinational clients to advise on critical projects and large-scale, cross-border transactions with 25+ years of experience in corporate and M&A. He leverages his professional and communication skills to be an inspiring leader for each and every one of his teams. He is a prominent speaker, author, and lecturer with contributions to industry publications and mainstream press, in cooperation with various organizations including Harvard Business Review Türkiye, Bahçeşehir University, and Board Membership Mentoring and Development Program and member of International Bar Association (IBA).

Our Services: KP Law has a leading practice focused on Mergers and Acquisitions, Corporate, Commercial Law, Intellectual Property, Employment and Contracts, Data Protection & Technology, Tax Law, Capital Markets, Arbitration as well as Litigation and Arbitration across a wide range of industries with particular emphasis on the retail, industrial manufacturing, fintech, e-commerce, and energy sectors.

Our Approach: Adopting innovative approaches by combining high-quality strategic thinking, commercial awareness and cutting-edge technology, our team acts with an unconventional mindset and approach:
- Going beyond just giving legal advice, we put ourselves at the heart of your business. By understanding your problems and needs, we redefine them.
- We give you a competitive advantage by predicting problems before they arise.
- We take an analytical approach by breaking the most complex problems into simple formulations to offer a clear path forward.
- We add value to your business as we invest in a team of legal talent combined with strong financial literacy and strategic thinking.

Firm’s website: www.kplawtr.com