ArtResolve : Confidential and effective resolution of disputes about works of art : Arbitration

ArtResolve

Dispute Resolution by Arbitration

Formal and binding - The UNCITRAL arbitration rules - Suitable arbitrators - Fees - Do you need lawyers? - Does there need to be a hearing? - Binding awards - Restricted appeals

FORMAL AND BINDING

Arbitration is a formal system of dispute resolution leading to a binding result which is similar to a court judgment, and is known as an arbitration award. Arbitration is suitable for disputes of all kinds, particularly when there are issues of fact, law and expertise and where international enforcement is required. Arbitration awards are enforceable in over 100 countries, whereas judgments of the English courts are enforceable only in Europe and certain Commonwealth countries: elsewhere (notably in the United States) fresh court proceedings are required.

THE UNCITRAL ARBITRATION RULES

ArtResolve recommend the use of the UNCITRAL arbitration rules. They are a very widely accepted set of rules published by the United Nations, and are often used in international cases: they can be used in domestic cases too.

SUITABLE ARBITRATORS

ArtResolve appoints arbitrators with the most appropriate expertise. A case may call for a tribunal of one arbitrator or of three. Where there is no agreement on the number, three are appointed, with the parties having the right to appoint one member of the tribunal each. A pupil may work with the tribunal, with the parties' permission.

FEES

The arbitrators' fees are for agreement between the tribunal and the parties and subject to approval by ArtResolve. The fees have to be paid in advance of any major commitments of time, and certainly before the delivery of the award. The advanced fees are due in equal shares, and the proportion is subsequently adjusted by the arbitrators, as part of their award, in the light of their decision on the merits of the case.

DO YOU NEED LAWYERS?

ArtResolve recommends that parties instruct lawyers to represent them in an arbitration, as the process is formal and leads to a binding result. The parties should agree the language, the law and the location for the arbitration: if they do not do so, the tribunal establishes these matters.

DOES THERE HAVE TO BE A HEARING?

Procedure under the UNCITRAL arbitration rules is for statements of case by both claimant and defendant. The tribunal then consults with the parties on the most appropriate procedure for resolving the dispute, which may be achieved by consideration of documents only, or may run to a trial-type hearing, with cross-examination of witnesses of fact and expertise and presentation of arguments.

BINDING AWARDS - RESTRICTED APPEALS

The tribunal then issues its award, which is final and binding on the parties and readily enforceable in many countries. There is generally little or no opportunity for appeals.

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