Stages of litigation in the Commercial Arbitration process

The arbitration process is a process for resolving commercial disputes outside of court. This mechanism not only provides an alternative to court litigation, but also helps stakeholders reach more equitable and professional solutions. To ensure that the arbitration process is conducted fairly and efficiently, a clear understanding of the stages of proceedings is essential. Let’s learn about this issue with Long Phan in the article below.

Overview of the commercial arbitration process

Commercial arbitration is a method of resolving disputes outside of court. The disputing parties agree to choose arbitration to resolve the case instead of suing in court. The arbitration process is conducted according to the rules of the arbitration institution and the agreement of the parties.

Important characteristics of commercial arbitration are procedural flexibility and information security. The parties have the right to choose the arbitrator, the place of dispute resolution and the applicable procedural rules. The arbitration award is final and binding on the parties.

The commercial arbitration process includes main stages: initiating a lawsuit, establishing an arbitration council, studying documents, resolving disputes and making a decision. Each stage has its own deadline and procedures according to the provisions of law and arbitration rules.

Litigation stage in the commercial arbitration process

File a lawsuit

The lawsuit phase begins when the plaintiff submits the lawsuit to the arbitration organization. The petition must clearly state the information of the parties, the content of the dispute, the request for litigation and the appointment of an arbitrator. The plaintiff must pay the arbitration fee when filing a lawsuit. In case the dispute is resolved by ad hoc arbitration, the plaintiff must file a lawsuit and send a copy to the defendant.

The arbitration center will preliminarily check the claim for jurisdiction and notify the defendant. The defendant has the right to submit a self-defense, make a counterclaim or sue the plaintiff. Failure to file a statement of defense does not prevent the proceedings from continuing.

The parties have the right to amend, supplement or withdraw the lawsuit, or re-file the lawsuit before the arbitration council issues a decision. This stage establishes the procedural relationship between the disputing parties and the arbitration organization.

Legal basis: Article 30 of the Law on Commercial Arbitration 2010.

Establishment of an arbitration council

The composition of the Arbitration Council may include one or more Arbitrators as agreed by the parties. In case the parties do not agree on the number of Arbitrators, the Arbitration Council shall consist of three Arbitrators.

In case the parties do not agree otherwise or the Arbitration Process of the Arbitration Center does not stipulate otherwise, the establishment of the Arbitration Council is prescribed as follows:

• Within 30 days from the date of receiving the petition and request to select an Arbitrator sent by the Arbitration Center, the defendant must choose an Arbitrator for himself and notify the Arbitration Center or request the Arbitrator. The President of the Arbitration Center appoints the Arbitrator. If the defendant does not choose an Arbitrator or does not request the President of the Arbitration Center to appoint an Arbitrator, then within 07 days, the President of the Arbitration Center shall appoint an Arbitrator for the defendant;
• In case the dispute has multiple defendants, within 30 days from the date of receiving the petition sent by the Arbitration Center, the defendants must agree to choose an Arbitrator or agree to request the appointment of an Arbitrator. agent for yourself. If the defendants cannot choose an Arbitrator, then within 07 days, the Chairman of the Arbitration Center shall appoint an Arbitrator for the defendants;
• Within 15 days from the date the Arbitrators are selected by the parties or appointed by the President of the Arbitration Center, these Arbitrators shall elect another Arbitrator to be the Chairman of the Arbitration Council. At the end of this time limit, if the election cannot be carried out, then within 07 days from the date of expiry of the time limit specified in this Clause, the Chairman of the Arbitration Center shall appoint the Chairman of the Arbitration Council;
• In case the parties agree that the dispute will be resolved by a single Arbitrator but the Arbitrator cannot be selected within 30 days from the date the defendant receives the petition, then at the request of one or more party and within 15 days from the date of receipt of the request, the President of the Arbitration Center will appoint the sole Arbitrator.

Legal basis: Article 39, Article 40 of the Law on Commercial Arbitration 2010.

The Arbitration Council studies the dossier and performs some tasks according to its authority

After its establishment, the arbitration council studies the case file. The Council has the right to request the parties to provide additional documents and evidence. The arbitration council can conduct verification and collect evidence when necessary.

During this period, the arbitral tribunal has the authority to apply interim emergency measures at the request of a party. Measures may include prohibiting changes to the current status of assets, prohibiting asset transfers, and freezing accounts.

The arbitral tribunal decides how to conduct the proceedings in accordance with the parties’ agreement and the procedural rules. The Council may hold a preliminary meeting to determine the issues to be resolved and the procedural schedule.

Conduct dispute resolution

The arbitration council holds a meeting to resolve the dispute. At the meeting, the parties present arguments, present evidence and debate. The Council may request the parties to clarify the issue and provide additional documents. The composition and procedures of the meeting are prescribed as follows:

• The dispute resolution meeting is conducted privately, unless the parties agree otherwise.
• The parties can directly or authorize representatives to attend the dispute resolution meeting; have the right to invite witnesses and people to protect their legitimate rights and interests.
• In case of agreement of the parties, the Arbitral Tribunal may allow other persons to attend the dispute resolution meeting.
• The order and procedures for conducting dispute resolution meetings are prescribed by the arbitration procedure rules of the Arbitration Center; For ad hoc arbitration, it is agreed upon by the parties.

At the request of the parties, the arbitration council may conduct mediation. If conciliation is successful, the council prepares a conciliation record and issues a decision recognizing the parties’ agreement. In case of failure to reconcile, the council continues to resolve the dispute.

The dispute resolution meeting is conducted privately, ensuring confidentiality. The parties have the right to defend themselves or be represented by a lawyer. The arbitration council can summon witnesses and request experts when necessary.

Legal basis: Article 54, Article 55 of the Law on Commercial Arbitration 2010.

Make a judgment

After completing the dispute resolution, the arbitration council issues a decision. The judgment must be issued within 30 days from the end of the last meeting. The decision is passed by majority rule. In case the voting does not reach a majority, the arbitration award is made according to the opinion of the Chairman of the Arbitration Council.

The arbitration award must be in writing, clearly stating the date, location, reason, and decision of the council on each disputed issue as prescribed in Article 61 of the Law on Commercial Arbitration 2010. The award is effective and binding. binding on the parties from the date of promulgation.

The arbitration center sends the award to the parties immediately after its issuance. The parties have the right to request the arbitration council to explain and correct spelling or data errors in the award. The arbitration award is final and enforceable like a valid court judgment.

Benefits of resolving disputes by commercial arbitration

Resolving disputes by commercial arbitration brings many benefits to the parties. Arbitration procedures are more flexible and faster than courts. The parties are free to choose arbitrators with expertise appropriate to the dispute.

High confidentiality helps protect the reputation and business secrets of the enterprise. The arbitration award has final effect, avoiding prolongation of disputes. Costs are lower than lengthy litigation in court.

Commercial arbitration is consistent with the trend of international integration. This is a popular choice in resolving international commercial disputes.

Consulting services on commercial arbitration process at Long Phan

Commercial arbitration process consulting services at Long Phan help businesses choose appropriate dispute resolution methods, including some of the following services:

• Consulting on drafting arbitration agreements;
• Support the preparation and drafting of documents to ensure they meet the requirements of form and content according to arbitration procedural rules.
• Select arbitration organization and arbitrator;
• Representing customers to participate in dispute resolution sessions at commercial arbitration;
• Develop strategies, prepare documents, collect evidence and argue to protect customers’ rights.

Consulting services also include negotiation and mediation during the dispute resolution process. At the same time, support the enforcement of arbitration awards or request cancellation of awards when necessary.

Professional document drafting helps present the client’s views clearly and convincingly to the arbitration council. This is an important factor contributing to protecting legitimate rights and interests during the process of resolving disputes by commercial arbitration.

The commercial arbitration process helps resolve disputes effectively, securely and quickly. Customers need to clearly understand the litigation stages from lawsuit initiation to judgment to protect optimal rights. Long Phan’s consulting services assist you in drafting documents, representing in the litigation process and building appropriate dispute resolution strategies. Please contact the hotline: 090.673.5386 immediately for professional support on the Commercial Arbitration Process.