In this issue, we will discuss the forms of arbitration:
Arbitration is divided into: private or voluntary arbitration and institutional arbitration, as well as international arbitration and domestic arbitration, and optional arbitration and mandatory arbitration:
Private arbitration:
This refers to arbitration of specific cases. In this type of arbitration, the parties to the dispute set the dates and deadlines, appoint the arbitrators, and have the authority to remove or recuse them, and they determine the procedures necessary to resolve the arbitration matters. Arbitration is considered ad hoc even if the parties to the dispute agree to apply the procedures and rules of an organization or an arbitral body, as long as the arbitration takes place outside the framework of that organization or body. An example of this is when the parties choose to apply the rules issued by the United Nations Commission on International Trade Law (UNCITRAL), known as the UNCITRAL Arbitration Rules.
The key feature of this type of arbitration is that the parties to the dispute choose the procedures and rules to be applied to the arbitration outside the framework of any arbitral body or organization, even if the parties draw upon the procedures, rules, and expertise of that body or organization. Private arbitration is the earliest form of arbitration; it continues to exist and retains an important place in the field of arbitration, particularly in disputes between states. When sovereign states resort to arbitration, they will only accept it if it is conducted in a manner that respects their authority and sovereignty; this often occurs in disputes where the parties are the state itself, one of its ministries, or government entities affiliated with the state. However, the concept of the state has given rise to two types of public institutions affiliated with the state: those linked to public utilities and those engaged in industrial and commercial activities, which possess a distinct degree of autonomy and administrative and financial independence. When these institutions are parties to a dispute, they do not challenge the state’s authority and sovereignty, and they readily agree to submit to arbitration by arbitration centers. However, the other type of public institutions or ministries only accepts arbitration that it helps organize and in which it shapes the arbitral tribunal—selecting its own arbitrators and, together with its opponent, choosing the third arbitrator… To be continued in the next issue.
