1/10/2016

Arbitration:Newtoysforthenewyear|MagazineComment|Building

Arbitration:Newtoysforthenewyear
8January2016|ByTonyBingham
AdjudicationgavetheUKlegalsectortheabilitytodecidedisputesfast.Nowarbitrationistheorderoftheday,and
theRICSandCIArbarekeentotakeadvantageofthoseskills
ThereisasandwichboardmanmarchingupanddownoutsidetheRICSanotheroutside
theCharteredInstituteofArbitrators.Theirboardsread:Arbitratedontadjudicate.And
thepeopleinsidetheRICSandCIArbaremarchingupanddown,musicandall,theytoo
proselytise:Arbitratedontadjudicate.
Itisnotquiteanewfaith,moreofanewdawn.Gofurtherthetwoinstitutionshavere
brandedarbitration.Likethoseoldwashingpowderadverts,NewArbitrationwashes
whiterthanwhite.Ilikeit.
For2016theRICShaslaunchedArbitrationSelectandArbitrationFastTrack.The
CharteredInstituteofArbitrators(CIArb)haslaunchedbrandnewArbitrationRulesand
brandnewEmergencyArbitration.
Iwilldelveintothosebrandsinamoment.Firstthough,listenin:adjudicationcameasabrandnewbabyin1998.It
tookusbystorm.Ittookusbythethroat.Itmadeusmoveeversofast.Thatpacetaughtushowtoarbitrate.We
canarbitrateatapaceneverdreamedofbefore1998.Theshocktomanyalawyerbroughtuponthegrindingdetail
ofthetraditionalapproachtodisputeresolutionleftsomebehind.Wenowtakeforgranteddoingitdamnquick.And
thereismore.ThoseRICSadjudicatorsinparticularhavenow,inupwardsof18years,donethousandsofawards,
andhavedealtwithawholerangeoftechnicalcomplexityinalltheseconstructiondisputes.Thereisnowan
adjudicatorhorsetofityourarbitrationcourse.Evenmore,inthese18yearswehavedraggedadjudicationaway
fromaquickfumbletoalock,stockandbarrelthumpingwrestletogettothebottomofthematter.Takealooknow
atanadjudicatorsaward,thenlookatanarbitrationawardthedepthanddifferenceisnotfarapart.
Thereisabandofadjudicatorswellversedindecidingdisputesfast.Nobodyanywhereintheworld
hasourexperienceindecidingdisputesonconstructionprojects
So,thereisabandofadjudicatorswellversedindecidingdisputesfast.Nobodyanywhereintheworldhasour
experienceindecidingdisputesonconstructionprojects:believeme.
Nowthen,whatsthisRICSFastTrackArbitrationabout?Itisfordisputesunder100,000.Thetimetableis,at
most,25weeks.TheRICSwillinterviewthepartiesastowhatsortofarbitrator,orwho,isbest.Morelikelythe
partieswillputupnamesfortheRICStoselectfrom.ThentheRICSwilldedicateacaseofficer,toeacharbitration
appointment,forenhancedpreandpostappointmentcustomersupport.Thearbitratoristaskedwithproportionate
costmanagementofthearbitration.Tothatextent,thearbitratorsrateis175perhour.Thecapis60hours,so
10,500maximum.Ifacounterclaimpopsupthetimeclockjumpsbysixhoursforeach10,000valueof
counterclaim.Astothepartyandpartycosts,recoverablecostswillbecappedat5,000or20%ofthevalueofthe
claim,plusanycounterclaim.MymessagetotheRICSistobeverycarefulaboutwhomyouchooseasarbitrator
thesedisputesunder100,000arenotatrainingground.Thegoingrateforourhighlyexperienceddisputedeciders
iswelluponthat175.
TheRICSSelectoptionisforhighvalue,complexdisputes.Thetimelimitis12months.TheRICSwilldiscussfee
earningrateswiththearbitratorandthepartiestoaskforaview.Therateperhourisallveryinteresting.More
importantishowfast,howquickly,andhowproperlycanthearbitratorgettotheissuesandtothebottomofthe
matter.Whetherfasttrackornot,awannabeearbitratorisatadriskyunlesshehasaseniorarbitratormentor.
http://www.building.co.uk/professional/legal/arbitrationnewtoysforthenewyear/5079534.article

1/3

1/10/2016

Arbitration:Newtoysforthenewyear|MagazineComment|Building

TheCIArbnewideaisarefreshofArbitrationRules.Iconfessthatthebestrulesinthelandaretheseofthe
ArbitrationAct1996.Itisworldbeatingandworthfollowing.TheCIArbRules,infairness,areforworldwideuse.So
topmarksforthatidea.
ButwhatswithEmergencyArbitration?Therulesallowapartytoapplyoutoftheblueforemergencyreliefand
interimmeasures.Applytodayandtheappointmentwillbemadeintwodays.Theemergencyarbitratorsdecisionis
madewithin15days.Itisintended,forexample,toprovideanordertorestorethestatusquopendingtheeventual
determinationofthedispute,preventapartytakingactionlikelytocauseharmorprejudicethearbitration,preserve
assetsoutofwhichasubsequentawardmaybesatisfied,preserveevidencethatmayberelevant,andmore.This
arbitratoralsocandecidejurisdictionalchallenges,themeaning,andthescopeofthearbitrationclause.Thisideais
welcome.Itistheemergencydefaultclause.Itcanonlybeexcludedifexpresslydeletedinthearbitrationclause.
Dontdothat.
Wellnow,allthatisexcitingandshowsarenewedcommitmenttotheestablishedideaofarbitration.Thereisjusta
snag.TheJCTandotherstandardformprovidershavetobeaskedtogobacktoputtinganarbitrationclauseinthe
documents,justasitwasuntil1998.
PerhapsCIArbandRICSmightknockontheJCTdoor,dosomefirstfooting,singAuldLangSyneandreciteHaste
yeback,weloveyoudearly.
Happynewyear.
TonyBinghamisabarristerandarbitratorat3PaperBuildings,Temple

MarketplaceRecommendations

ClancyConsulting
Healthcare

AdsPoweredwith

0
Follow@buildingnews

66.9Kfollowers

LATESTCASESTUDIES
Oldchapelgets

Architecturalmesh

Suspended

newlook

forHornseyHigh
Street,London

Schcoaluminum
unitizedfaadefor
hotel

http://www.building.co.uk/professional/legal/arbitrationnewtoysforthenewyear/5079534.article

2/3

1/10/2016

Arbitration:Newtoysforthenewyear|MagazineComment|Building

ReadMore

ReadMore

http://www.building.co.uk/professional/legal/arbitrationnewtoysforthenewyear/5079534.article

ReadMore

3/3