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Kinds of Interim Measures in Arbitration.

Posted on 15/03/2016 · Posted in Arbitration

Arbitration is increasingly used as a form of alternative dispute resolution (‘ADR‘) as businesses seek to save time and money that they would otherwise incur through the court system. Arbitration is also becoming a more popular alternative to formal litigation because it offers more flexibility – parties can agree on the venue and timing of the arbitration and even have some influence over the choice of arbitrator used. Arbitration is also usually a private process so there is the option of confidentiality, and because the arbitrator’s decision is final and legally binding, there is limited room for appeal.

The use of interim measures in arbitration proceedings has grown recently alongside the popularity of arbitration as a form of dispute resolution, and protects a party’s rights pending the outcome of a dispute. During – and even before – the arbitration process kicks off, issues may arise that could have an effect on the final outcome of the arbitration, and this may be when interim measures are requested or required.

Common types of interim measures include those that facilitate the production of evidence, those that preserve the status quo, measures that facilitate the enforcement of an award, and injunctions.

Peace cannot be kept by force; it can only be achieved by understanding”
Albert Einstein

The provision of these interim measures is essential in making the arbitration process – as well as the outcome of the arbitration – more effective, as they provide parties with the security and or relief that allows them to continue with the process. So a party may request an interim measure such as immediate protection of rights or property pending the arbitration outcome, or upfront payment of part of a claim. Across the world courts have developed processes for parties to enable them to apply for these interim measures. One of the key principles of the Arbitration Act of 1996 is to minimise the need for the courts to intervene, so the courts may agree that interim measures may be granted by the arbitrator, and tribunals also have the power to issue partial awards (authorised by the courts) which are binding until a final resolution is reached.

As arbitration cases become more complex and proliferated, including more international cases that add further complexity, interim measures are becoming increasingly more varied, and adapting to meet the practical needs of the parties involved in arbitration.

Expert Evidence is a professional firm concentrating on the four main areas of dispute resolution; acting as expert witnesses in financial litigation, mediation, arbitration and adjudication. The firm has a civil, criminal and international practice and has advised in many recent cases. Areas of specialisation include banking, lending, regulation, investment, and tax.

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