preview

Advantages And Disadvantages Of Arbitral Proceedings

Decent Essays

4. Conduct of Proceedings
Commencing an arbitration
Unless otherwise agreed by the parties, the arbitral proceedings commence on the date on which a request for arbitration is received by the respondent. The request must designate the parties as well as the subject matter of the litigation, and it must indicate that an arbitration agreement was concluded. The ZPO only requires the request to contain the names of the parties, the subject matter of the dispute and a reference to the arbitration agreement. However, the request may, and usually does, contain details of the facts, legal arguments and evidence in support of the claim. Service of the request for arbitration suspends the limitation period. The parties may deviate from this procedure by agreement. In particular, the rules …show more content…

Furthermore, awards are not usually published and the public is not informed of the conduct and content of the proceedings. The private nature of arbitration is usually considered as one of the key advantages of arbitral proceedings compared to proceedings in state courts. However, the confidentiality of such proceedings is less extensive than parties usually assume as German arbitration law does not expressly stipulate a confidentiality obligation on the parties.
Regarding any consultation during the decision-making process, the arbitrators are bound by the confidentiality of judicial deliberations.
Court assistance in taking evidence
The arbitral tribunal cannot compel witnesses to give evidence but it can request the assistance of the state courts. The court can compel witnesses that fall under the jurisdiction of that court to appear and provide testimony. In practice the parties and the arbitral tribunal will be present at such a hearing before the state court and will usually be granted the opportunity to ask

Get Access