This article mainly briefs through the general information about Expedited Arbitration as any of the audience would wish to know a bit. So what is exactly expedited arbitration? As defined by the United Nations Commission on International Trade Law or known as UNCITRIAL, Expedited arbitration is a streamlined and simplified procedure with a shorter time frame that allows the parties to obtain a final settlement of the dispute at a low cost and on time.
Differences compared to other forms of Arbitration
Since I have mentioned that expedited arbitration is also known as the fast track arbitration with shorten and simplified procedure and efficient time frame. Thus, you may refer to the following that shows the TWO of the most common arbitration that ever applied:
- Ad Hoc Arbitration
Ad hoc arbitration is the process through which the parties mutually arrange for arbitration to settle their dispute. The parties are allowed to propose their own set of rules and procedures and are not required to adhere to any prescribed standards of any arbitral organization. The geographical jurisdiction is crucial to ad hoc arbitration.
- Institutional Arbitration
The arbitration procedure carried out by an arbitration institution is referred to as institutional arbitration. These institutions have their own set of regulations and provide a framework for the parties’ disagreement to be resolved through arbitration. It has its administration to help with the procedure.
How does it work?
An SCC-administered expedited arbitration proceeding requires that the parties agree that the dispute will be resolved via arbitration under the SCC Rules for Expedited Arbitration. In most cases, the parties incorporate such a clause in their business agreement (arbitration clause). However, after the disagreement has developed, the parties might agree to settle it through arbitration. In the absence of such an agreement between the parties, the SCC is unable to manage the dispute using the expedited method.
Besides that, according to the Rules for Expedited Arbitration, the parties may submit a limited number of petitions, and the expedited system has shorter deadlines than the Arbitration Rules method. As a result, the accelerated method is ideal for minor conflicts. This is usually done by one party initiating an accelerated arbitration case by filing a request for arbitration with the SCC. The claimant must pay a registration fee to the SCC upon filing the request for arbitration.
Cases that apply expedited arbitration
Expedited procedures are often designated for low-value claims. However, the definition of a minor claim and the accompanying monetary barrier differ widely from institution to organization. Accelerated procedural procedures apply automatically to disputes valued at US$2 million or less under the ICC Rules if the arbitration agreement was formed after March 1, 2017, and the parties did not expressly opt-out of the expedited procedure in their agreement. Parties may choose the accelerated route for claims under the ICC Rules that exceed US$2 million. In that regard, the ICC accelerated method is unique in that it is necessary, although, under most other institutional norms, the expedited procedure can be adopted only with the parties’ consent, which is generally part of the arbitration clause.